ICP → Ascending Triangle Breakout! Take Advantage of This Long.
Updated
Internet Computer Token is knocking on the gates of resistance in a bullish ascending triangle pattern! It seems inevitable that the price will reach higher highs, but do we have enough data to enter a long now?
How do we trade this?
We have these key bullish data points; the macro trend, ascending triangle pattern, RSI above the Moving Average, and Bitcoin as a leading indicator reaching new highs. It may seem like longing now is a great idea, but it's risky for one very important reason; we're at resistance. There isn't enough room for reward against our risk, which is at least just below the 30EMA ribbon.
Confirmation of a breakout is necessary in this analysis. Once the price breaks out and tests prior resistance as support, it's reasonable to long. Place your protective stop just below the top of the triangle or EMA ribbons and your take profit just before the next resistance zone.
Since we're at resistance, be prepared for the market to reverse and trade accordingly!
Trade Idea
Long Entry: $5.20
Stop Loss: $4.24
Take Profit: $6.60
Risk/Reward Ratio: 1:2.5
Key Takeaways
1. Ascending Triangle, Bias to Long!
2. Macro Trend is Bullish
3. Wait for Resistance to Break before longing.
4. RSI at 60.00 and above Moving Average, Supports Long.
5. After breaking Resistance, Long after test of Support.
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?
We have these key bullish data points; the macro trend, ascending triangle pattern, RSI above the Moving Average, and Bitcoin as a leading indicator reaching new highs. It may seem like longing now is a great idea, but it's risky for one very important reason; we're at resistance. There isn't enough room for reward against our risk, which is at least just below the 30EMA ribbon.
Confirmation of a breakout is necessary in this analysis. Once the price breaks out and tests prior resistance as support, it's reasonable to long. Place your protective stop just below the top of the triangle or EMA ribbons and your take profit just before the next resistance zone.
Since we're at resistance, be prepared for the market to reverse and trade accordingly!
Trade Idea
Long Entry: $5.20
Stop Loss: $4.24
Take Profit: $6.60
Risk/Reward Ratio: 1:2.5
Key Takeaways
1. Ascending Triangle, Bias to Long!
2. Macro Trend is Bullish
3. Wait for Resistance to Break before longing.
4. RSI at 60.00 and above Moving Average, Supports Long.
5. After breaking Resistance, Long after test of Support.
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
Zooming into the 4HR chart, ICP confirmed Support on top of the Ascending Triangle! As this analysis advocated for, this was the requirement to long. The price action is still bullish, we're waiting for the 30EMA to catch up to the price on the 4HR chart. If we continue to see support, we should continue holding our long.
More updates to come as they unfold!
Note
Fantastic Bull Continuation Candle off of the 30EMA! This is exactly what we want to see to support holding our longs. Hang on tight, the signals say we're continuing to the upside!
More updates to come as they unfold!
Note
Trade successful! Our bullish continuation candle (our bull confirmation) was in fact the signal to get long. It was reasonable to take a 1:2 or 1:3 Risk/Reward trade and see what happened at the Resistance Zone. What ICP gave us at $7.29 was a few sideways bars, textbook confirmation pattern followed by a strong bull candle closing at $7.92. That is a signal that the Resistance Zone is not phasing the price and if you still had any of your position open to hold onto it for more!
This latest 4HR candle is massive, but be careful, that could be an exhaustive finish to the breakout. Watch the next few bars for reversal signs and if you're still holding some of your initial position, consider taking profits at 1:10 Risk/Reward and going home happy!
A fresh ICP analysis will be coming soon!
-Joe Dean
Trader Engineering Course
**Available Now at TraderEngineering.com**
Trader Engineering Course
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