LINK → Chainlink Potential Triple Top! Short Scalp Opportunity?

Updated
Chainlink has been attempting to break the $16-$17 range since November 11th and has failed there times. After the crypto sell-off on January 3rd, Chainlink made one more attempt but fell short at $15.75. With that lower high, is it time to short?

How do we trade this? 🤔
We have a potential triple top, a doji (one bar trading range) just under the Resistance Zone which is a potential lower high, and a crypto market that's burning hot and likely nearing a strong pullback. To confirm a short entry, we need a strong bear bar closing on or near its low below the Daily 30EMA. Stop loss should be just above the previous high.


💡 Trade Idea 💡

Short Entry: $14.20
🟥 Stop Loss: $17.90
✅ Take Profit: $10.50
⚖️ Risk/Reward Ratio: 1:1


🔑 Key Takeaways 🔑

1. Potential Triple Top Reversal.
2. Doji candle just below Resistance Zone.
3. Look for Bear Candle Confirmation Below 30EMA.
4. Use Low Position Size, 1:1 Risk/Reward Scalp.
5. RSI at 51.00 and above the Moving Average. Indecision.


💰 Trading Tip 💰
There is over a 60% chance of a measured move after the breakout of a major resistance, normally, a trading range. That means the distance from the trading range resistance to the top of the breakout will happen again above the top of the breakout.


⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!


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Note
snapshot

LINK has given us yet another sell signal in the Resistance Zone! Another indicator of the drop that will likely come. The last Daily bear candle closed below the 30EMA, a good sign that follow-through is coming in the next couple of bars. A second strong bear bar closing below the 30EMA is our confirmation to enter the short trade. Arguably, you could enter now with less initial risk, but you also have less probability in the short direction because we lack that confirmation bar.

Balance your initial risk against that probability and trade accordingly.
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-Joe Dean
Trader Engineering Course
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