ICP / TetherUSLong
ICP trading setup idea
Updated
Weekly: long term analysis
ICPUSDT defined an All Time Low (ATL) at the 3$ level.
After that low, ICP witnessed a very strong momentum upward with incredible volumes. It is now consolidating for several weeks at the current price level. Let's analyze it in a lower time frame to plan an entry.
Daily: short term analysis
Since the ATL, ICP had a very bullish momentum with huge volumes.
After a period of consolidation under a very clear resistance level and a contracting volatility (see narrow Bollinger Bands), ICP is now attempting to break out of this resistance level with an increase in volumes.
If breakout is confirmed, all ingredients for a powerful upward movement and a good trading setup will be gathered.
Strategy
Buy signal will be given on a daily close above the horizontal resistance line at 14,75$.
Invalidation
Mental Stop: just below the last consolidation low at 12$. This setup proposes a nice Risk Reward
If prices retrace to this stop level we will wait for the weekly closing price then set a Stop loss ¼ or Risk below the weekly close price.
Risk = Distance between Mental stop and entry point.
ICPUSDT defined an All Time Low (ATL) at the 3$ level.After that low, ICP witnessed a very strong momentum upward with incredible volumes. It is now consolidating for several weeks at the current price level. Let's analyze it in a lower time frame to plan an entry.
Daily: short term analysis
Since the ATL, ICP had a very bullish momentum with huge volumes.
After a period of consolidation under a very clear resistance level and a contracting volatility (see narrow Bollinger Bands), ICP is now attempting to break out of this resistance level with an increase in volumes.
If breakout is confirmed, all ingredients for a powerful upward movement and a good trading setup will be gathered.
Strategy
Buy signal will be given on a daily close above the horizontal resistance line at 14,75$.
- Objective 1: Nearest resistance line at 23,50$ (+60%)
- Objective 2: Next resistance at 39$ (+160%)
- Objective 3: First wave target and next resistance at 82$ (+500%)
Invalidation
Mental Stop: just below the last consolidation low at 12$. This setup proposes a nice Risk Reward
If prices retrace to this stop level we will wait for the weekly closing price then set a Stop loss ¼ or Risk below the weekly close price.
Risk = Distance between Mental stop and entry point.
Trade closed: stop reached
Our mental stop was touch after a false buy signal then real stop was executed at 12$ on the 8th of April.
We are out of this trade with a controlled loss of less than 20%.
Let's move on and focus on our next opportunities.
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