MATIC → Polygon Bull Run Near Complete! Reversal Time?
Updated
Polygon had a beautiful double bottom at the Daily 200EMA and as predicted, ripping to the upside and near completing the trade of our last analysis. Where do we go from here?
How do we trade this? 🤔
We likely have more upside to go before we consider a reversal. Wait until the price makes contact with the Resistance Zone at $0.95. Look for a bear signal candle and confirmation before entering a position, then target a 1:2 Risk/Reward back down to the 30EMA. Protective stop just above where the price reversed, likely at the $0.95 area.
A bear signal candle usually has a long wick on top and closes on near its bottom. The confirmation candle usually consists of a strong bear candle closing on or near its low, "confirming" the reversal. Confirmation is a bit misleading, it just means we have a high enough probability based on historical data to justify a short position.
💡 Trade Idea 💡
Short Entry: $0.9240
🟥 Stop Loss: $0.9735
✅ Take Profit: $0.8250
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Double Bottom at 200EMA, Bias to Long!
2. Wait for bull run to finish. Target Resistance Zone for Reversal.
3. Look for Bear Signal and Confirmation Candles.
4. RSI around 68.00 and above Moving Average, Short-term Bias to Long.
5. If Reversal bars and RSI over 70.00, Consider a Short Position.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and comment if you found this analysis useful!
How do we trade this? 🤔
We likely have more upside to go before we consider a reversal. Wait until the price makes contact with the Resistance Zone at $0.95. Look for a bear signal candle and confirmation before entering a position, then target a 1:2 Risk/Reward back down to the 30EMA. Protective stop just above where the price reversed, likely at the $0.95 area.
A bear signal candle usually has a long wick on top and closes on near its bottom. The confirmation candle usually consists of a strong bear candle closing on or near its low, "confirming" the reversal. Confirmation is a bit misleading, it just means we have a high enough probability based on historical data to justify a short position.
💡 Trade Idea 💡
Short Entry: $0.9240
🟥 Stop Loss: $0.9735
✅ Take Profit: $0.8250
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Double Bottom at 200EMA, Bias to Long!
2. Wait for bull run to finish. Target Resistance Zone for Reversal.
3. Look for Bear Signal and Confirmation Candles.
4. RSI around 68.00 and above Moving Average, Short-term Bias to Long.
5. If Reversal bars and RSI over 70.00, Consider a Short Position.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and comment if you found this analysis useful!
Trade closed: target reached
Congratulations if you took the suggested short! The Rejection at the Resistance Zone played out perfectly with a double top reversal. A second attempt to hit resistance failed and with the crypto market sell-off, our take profit of $0.825 was hit perfectly.
We're now finding some support on the Daily 30EMA as predicted and should wait on the sidelines for more price action to roll out. MATIC will likely end up in a trading range for a bit along with the rest of the crypto market. What we need to see is if the trading range turns into a reversal or a continuation pattern. See my latest Bitcoin Lifetime Analysis for more details on how I think this will play out.
A fresh MATIC analysis will be coming soon!
-Joe Dean
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