DOGE 1HR → A Drop Before the Pop! Here's a Setup for Max Profit.
Updated
Doge is currently marching forward in a bull channel showing the bears who's boss. Both the Daily and Hourly timeframes are bullish, but don't long yet! Within the 1HR bull channel is an ascending wedge pattern, a bearish signal. Does that mean we short?
How do we trade this?
Shorting in a bull channel is not ideal, there are more bull candles than bear, making the probability of profit greater for the bulls. We should let the ascending wedge pattern play out, and let the price fall near the bull channel support and bounce. If Doge gives us a strong bull signal and confirmation bars closing on or near their highs, it's reasonable to long. Place a protective stop below the bull channel support or 200EMA and set a take profit target near the previous high of $0.083.
Trade Idea
Long Entry: $0.0795
Stop Loss: $0.0775
Take Profit: $0.0835
Risk/Reward Ratio: 1:2
Key Takeaways
1. Bull Channel, Bias to Long.
2. Ascending Wedge Within Bull Channel, Bearish Short-Term.
3. Wait for Bull Signal and Confirmation to Long off of Bull Channel Support.
4. Bitcoin Struggling to Break Weekly Resistance, a Market Leading Indicator.
5. RSI at 50.00 and below Moving Average, wait for a sign of support to Long.
You are solely responsible for your trades, trade at your own risk!
If you found this analysis helpful, click the Boost button and let us know what you think in the comment section below!
How do we trade this?
Shorting in a bull channel is not ideal, there are more bull candles than bear, making the probability of profit greater for the bulls. We should let the ascending wedge pattern play out, and let the price fall near the bull channel support and bounce. If Doge gives us a strong bull signal and confirmation bars closing on or near their highs, it's reasonable to long. Place a protective stop below the bull channel support or 200EMA and set a take profit target near the previous high of $0.083.
Trade Idea
Long Entry: $0.0795
Stop Loss: $0.0775
Take Profit: $0.0835
Risk/Reward Ratio: 1:2
Key Takeaways
1. Bull Channel, Bias to Long.
2. Ascending Wedge Within Bull Channel, Bearish Short-Term.
3. Wait for Bull Signal and Confirmation to Long off of Bull Channel Support.
4. Bitcoin Struggling to Break Weekly Resistance, a Market Leading Indicator.
5. RSI at 50.00 and below Moving Average, wait for a sign of support to Long.
You are solely responsible for your trades, trade at your own risk!
If you found this analysis helpful, click the Boost button and let us know what you think in the comment section below!
Note
The Ascending Wedge didn't play out! We never got the drop to support and in a couple of minutes, the latest hourly candle looks to be closing above the wedge resistance. Very possible this is the breakout to $0.10 per my recent analysis. More updates to come. Let me know what you think!
-Joe Dean
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