THETA/USDT LONG (W/ Video Analysis)
Updated
This is the published idea for the analysis done in the video walkthrough HERE
Looking to trade the RSI divergence on a 4H time frame.
Keeping a tight stop loss as no confirmation of divergence has played out and I am taking the trade preemptively.
Risk of loss against portfolio has been identified and accepted.
Entry: $4.80
TP1: $4.97 - To cover potential rejection of linear regression channel and possible stop out.
TP2: $5.98 - Take profit in here and will reevaluate the trade.
S/L: $4.62 - A tight stop-loss here due to larger bearish indications.
Methodologies and targets explained further in depth in the video 🤙
Looking to trade the RSI divergence on a 4H time frame.
Keeping a tight stop loss as no confirmation of divergence has played out and I am taking the trade preemptively.
Risk of loss against portfolio has been identified and accepted.
Entry: $4.80
TP1: $4.97 - To cover potential rejection of linear regression channel and possible stop out.
TP2: $5.98 - Take profit in here and will reevaluate the trade.
S/L: $4.62 - A tight stop-loss here due to larger bearish indications.
Methodologies and targets explained further in depth in the video 🤙
Trade active
Price action gave TP1 a little smooch, which was enough to trigger the order.3.59% profit taken will now cover most of the 3.67% loss attained if we're rejected and see a dump.
At this point my loss on the trade will be minimal, this helps both my portfolio and my psychology.
Now I will simply just actively managing the trade. We have yet to see confirmation of breakout in one direction or another, but we are moving tightly into the apex of the triangle, so I have set alerts on lower time frames (15m/1H) in key areas to monitor price action movement.
If a bullish breakout occurs and is likely favorable, I may add to my basis and follow the same methodology described in the video.
Trade active
Quick Update / Trade EvaluationBoth indicated profit targets were triggered and profit taken off the top.
Currently, price is sitting in resistance band at approx $6.00 - $6.30.
Resistance is expected in this region as this is both a strong level of support/resistance as well as our +1 standard deviation level above the linear regression mean taken from our all time high as explained in video.
Moving forward, I have added a couple more TP levels indicated in the image below. These levels utilize linear regression upper standard deviation areas as well as fibonacci levels of clustering with a focus on areas of regression and fib cluster intersection points.
Neon blue levels drawn on the chart are areas I will be looking for support if price action pulls back from its current price ($6.08). If confirmation of support is found I will add to my basis at these levels.
** There is potentially significant resistance at $6.35-$6.45 level where multiple fib pulls have clustered. Looking for a clear break above this level on 4H candle.
My S/L has not been adjusted
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.