TWT → Will the Price Climb to $1.50 or Drop to $1? Let's Answer.
TWT (Trust Wallet Token) has been in an expanding and ascending channel since late November and has given us a higher high and higher low. Should we long here?
How do we trade this? 🤔
We don't trade an unclear chart, this one is no exception! We have a higher high and higher low, but the high of the higher high has a large wick on it. This is *not* a signal of strength and neither is the fact that we're just above the Daily 30EMA without a strong bounce.
Our bias should remain long because the crypto market is currently in a bull trend, however, it's also at a pivotal moment where there is a real possibility of a reversal. Unless we get a strong signal here at the 30EMA, I wouldn't trade this in either direction. Even if the price action falls below the 30EMA, we have too many levels of support before a short is reasonable.
💡 Trade Idea💡
Long Entry: $1.25
🟥 Stop Loss: $1.09
✅ Take Profit: $1.41
⚖️ Risk/Reward Ratio: 1:1
🔑 Key Takeaways 🔑
1. Higher High and Higher Low after Bear Capitulation Bar. Bias to Long.
2. Weak bull candle on December 26th, Reduces Bull Probability.
3. Crypto Market at Pivotal Moment, Consider Reversal Possibility.
4. Above 30EMA, need close below to justify Short, Support to Long.
5. RSI at 55.00 and above Moving Average. Supports Long Bias.
💰 Trading Tip 💰
If your analysis renders conflicting signals, trade small or don't trade at all. Wait for the market to give you a signal and data toward a premise, then size your position and manage your trade accordingly.
⚠️ 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 don't trade an unclear chart, this one is no exception! We have a higher high and higher low, but the high of the higher high has a large wick on it. This is *not* a signal of strength and neither is the fact that we're just above the Daily 30EMA without a strong bounce.
Our bias should remain long because the crypto market is currently in a bull trend, however, it's also at a pivotal moment where there is a real possibility of a reversal. Unless we get a strong signal here at the 30EMA, I wouldn't trade this in either direction. Even if the price action falls below the 30EMA, we have too many levels of support before a short is reasonable.
💡 Trade Idea💡
Long Entry: $1.25
🟥 Stop Loss: $1.09
✅ Take Profit: $1.41
⚖️ Risk/Reward Ratio: 1:1
🔑 Key Takeaways 🔑
1. Higher High and Higher Low after Bear Capitulation Bar. Bias to Long.
2. Weak bull candle on December 26th, Reduces Bull Probability.
3. Crypto Market at Pivotal Moment, Consider Reversal Possibility.
4. Above 30EMA, need close below to justify Short, Support to Long.
5. RSI at 55.00 and above Moving Average. Supports Long Bias.
💰 Trading Tip 💰
If your analysis renders conflicting signals, trade small or don't trade at all. Wait for the market to give you a signal and data toward a premise, then size your position and manage your trade accordingly.
⚠️ 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!
-Joe Dean
Trader Engineering Course
**Available Now at TraderEngineering.com**
Trader Engineering Course
**Available Now at TraderEngineering.com**
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