ARKUSDT Trendline Betrayal Bearish Plunge !Trendline Break
The chart shows a clear upward trendline that has been broken. This break indicates a potential shift in market sentiment from bullish to bearish.
Retest Confirmation
After breaking the trendline, the price retraced upward, testing the previous trendline as resistance (red zone). This is a classic confirmation for a short setup.
Entry and Risk Zone
Entry :The short position is initiated just below the retest of the trendline, around the price of 0.5510.
Stop-Loss : Placed slightly above the retest zone, around 0.5897, to minimize risk if the price reclaims the trendline.
Target Zone
The blue area indicates the take-profit target, with a potential level around 0.3908. This level might have been chosen based on prior support or Fibonacci retracement levels.
Risk-to-Reward
The setup has a favorable risk-to-reward ratio, with the stop-loss relatively close to the entry and a much larger distance to the target.
Market Context
The sharp drop in price following the trendline break signals strong bearish momentum. Ensure that this move aligns with higher timeframes and broader market sentiment for confirmation.
Key Considerations
Watch for any sudden buying pressure or market reversal signs that could invalidate the setup.
Volume analysis can provide additional confirmation for the strength of the trendline break and the retest rejection.
Stay disciplined with stop-loss placement to manage risk effectively.
Book profits with usual profit locking rule of 10% by moving SL to BE for safe ride
