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Crypto2024

ADA → Cardano Pullback Followed by New Highs? Let's Answer.ADA completed its measured move to $0.68 and has now completed two legs down in a pullback to Support Zone #1. Should we long here? How do we trade this?  🤔 Support Zone #1 has held through two failed attempts to break down. We have a strong bull bar leading into the Daily 30EMA where we are now seeing some resistance. The RSI is around 50 and above the Moving Average, another sign for a long position. The only thing we're missing is a solid Risk/Reward Ratio, which requires the price pullback a bit more before we can enter the market. We ought to target at least a 1:2 Risk/Reward, but I believe we have the runway for a 1:3 Risk/Reward given the distance to the previous high of $0.68. Target the $0.487 area for an entry and place a stop loss below Support Zone #1 around $0.44, the first Take Profit at $0.535, and the final Take Profit around $0.63 or until you see a sell signal. Move the stop loss up to the entry price when Take Profit #1 is hit to lock in profits. 💡 Trade Idea 💡 Long Entry: $0.4875 🟥 Stop Loss: $0.440 ✅ Take Profit #1: $0.535 ✅ Take Profit #2: $0.630 ⚖️ Risk/Reward Ratio: 1:3 🔑 Key Takeaways 🔑 1. Two-legged pullback after a bull run 2. Two failed attempts to break Support Zone #1 3. Strong bull bar after pullback into the Daily 30EMA 4. Wait for the price to pullback to the $0.487 area for an entry 5. RSI at 50.00 and above the moving average, supports long bias. 💰 Trading Tip 💰 Trends typically have 3 pushes in either direction before a trend change begins. Along with other market indicators, creates a situation to look for counter-trend trades because the probability of profit is high enough. ⚠️ 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 Follow to learn more about: 1. Reading Price Action 2. Chart Analysis 3. Trade Management 4. Trading Psychology
KRAKEN:ADAUSDLong
by TraderEngineering
ETH → Ethereum Falling to $2,200!? A Prime Short Opportunity!Ethereum has reached the Resistance Zone at $2,850 and has shown the first signs of resistance. Should we enter a short? How do we trade this? 🤔 The conditions are such that we should be looking for a short entry. We have three pushes up since the start of the last bull leg from $2,200, a strong Resistance Zone at the current price, and an RSI that is overbought at 78.00. We are in the potential short territory but need the sell signal and confirmation prior to entering a short. Wait for the price to fall sharply and watch the candles after. It's likely we'll get a re-test of the $2,850 area before another sell bar occurs. Once that sell bar occurs, a 1:2 Risk/Reward Ratio is available to us if we enter the market at around $2,825. Set your stop loss into the Resistance Zone above the previous high and target 1:2 R/R for a take profit in the $2,350. 💡 Trade Idea 💡 Long Entry: $2,825 🟥 Stop Loss: $3,025 ✅ Take Profit: $2,350 ⚖️ Risk/Reward Ratio: 1:2 🔑 Key Takeaways 🔑 1. We have three pushes up since the start of the last bull leg from $2,200 2. Early signs of resistance at the current level 3. Strong Resistance Zone at the current level 4. Gap to the Support Zone 5. RSI is overbought at 78.00 and above the Moving Average, supporting the drop in price 💰 Trading Tip 💰 The longer a trend continues after 3 legs, the probability of that trend continuing lessens. Because of this decreased probability, we ought to reduce our risk when entering trades. ⚠️ 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 Follow to learn more about: 1. Reading Price Action 2. Chart Analysis 3. Trade Management 4. Trading Psychology
INDEX:ETHUSDShort
by TraderEngineering
3
LINK → Chainlink About to Breakout!? Let's Maximize Profits!Chainlink bounced off the top of the Resistance Zone at $20.00 and is threatening to break out. Is this a situation that calls for a long or a short? How do we trade this? 🤔 Never long in a Resistance Zone! But also, don't short prematurely. I believe LINK will make an attempt to break out of the Resistance Zone, but we need confirmation of the break before we can enter a long trade. Wait for a strong close above $20 followed by a test of the Resistance Zone as support. Once we see a strong bull bar closing on or near its high after a bounce on the Resistance Zone, we have the justification to enter a long trade. I do believe that Bitcoin has a high likelihood of pulling back into the $30,000-$35,000 range before we see new all-time highs. Such an event will likely drag the altcoin market down with it. This is partially why this trade is set up to take half profits at 1:1 Risk/Reward and move the stop loss up to the entry price, locking in profits. The remainder of the trade can then be executed without worry of loss. 💡 Trade Idea 💡 Long Entry: $21.60 🟥 Stop Loss: $17.185 ✅ Take Profit #1: $26.00 ✅ Take Profit #2: $34.85 ⚖️ Risk/Reward Ratio: 1:3 🔑 Key Takeaways 🔑 1. Two strong pushes to the upside 2. Strong resistance at Resistance Zone 3. Price action still above EMA ribbons 4. Wait for a break, close, and test of the Resistance Zone as support to enter a long trade 5. RSI at 70.00 and above the moving average, supports pullback then long 💰 Trading Tip 💰 Trends typically have three legs in either direction. Signals of a reversal include strong buy or sell bars with large wicks, higher highs and lower lows get weaker, and responses to the reverse direction get stronger. Confirmation lies with double and triple bottoms with a strong candle closing on or near its low/high. ⚠️ 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 Follow to learn more about: 1. Reading Price Action 2. Chart Analysis 3. Trade Management 4. Trading Psychology
Long
by TraderEngineering
6
BTC - Bitcoin Falling to $32,000! Or Will It Fall Lower?Bitcoin completed its measured move from the breakout at $31,800, to $37,800 and reached its peak at $48,900! As expected, we witness a sell signal at this level, indicating that the bull run is over. Should we short or long? How do we trade this? 🤔 My last analysis began just after the confirmation bar closed after the sell signal that wicked at $48,900. This analysis called for a short to just above the trading range support at $38,350: That short has come and gone, there is not enough area left to short without placing too much initial risk on the trade. It is still reasonable to short on lower timeframes like the 5m and 15m chart, but not the 4HR and Daily as we're doing here. We should be looking for long entries in the Trading Range zone between $31,800 and $37,500, right at the Daily 200EMA support. If we find a strong bull signal and confirmation candles following that support area, we should enter at least a 1:2 Risk/Reward Ratio long with a position size near our maximum, as justified by these data points and the macro bull trend. Stop loss should be placed below the Trading Range at $34,300. It's reasonable to take half profits at 1:1 Risk/Reward around $38,900, move the stop loss to your entry price to lock in profits, and then swing the rest of the position to at least $41,200. 💡 Trade Idea 💡 Long Entry: $36,600 🟥 Stop Loss: $34,300 ✅ Take Profit #1: $38,900 ✅ Take Profit #2: $41,200 ⚖️ Risk/Reward Ratio: 1:2 🔑 Key Takeaways 🔑 1. Measured Move completed followed by strong sell signal and confirmation bars 2. Two legs into a pullback with a gap to fill to the Daily 200EMA 3. Look for Support to long in the Trading Range near the Daily 200EMA 4. RSI at 38.00 and below the Moving Average, supports the continued to fall to the Trading Range 5. Once a strong signal and confirmation bull bars close above the Daily 200EMA, it's reasonable to long at 1:2 Risk/Reward 💰 Trading Tip 💰 It's reasonable to take half profits at the first resistance target in a long trade, or the first support target in a short trade. Using a 1:1 Risk/Reward Ratio for your first target, you can move your stop loss up to your entry price, locking in profits. This allows you to watch the rest of the trade execute without worry of losing money. This helps improve trading psychology and the equity in your account. ⚠️ 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 Follow to learn more about: 1. Reading Price Action 2. Chart Analysis 3. Trade Management 4. Trading Psychology
INDEX:BTCUSDLong
by TraderEngineering
ETH → Ethereum Falls Back to the Support Zone. Long or Short?Ethereum retraced to the Support Zone, following the rest of the crypto market in a pullback. Now that ETH is on the Support Zone, can we expect a bounce? How do we trade this? 🤔 I think it is probable that we get a bounce back up to the Daily 30EMA, but I do not believe ETH will break it. We may have witnessed the first leg down in a 2-legged pullback for ETH and Bitcoin. ETH has some long tail bars at the Support Zone, but with no good follow-through as of yet. It's reasonable to think the bulls will make an attempt to buy but with little momentum, which makes that Daily 30EMA ribbon an ideal resistance target as it previously acted as support. The rejection at the 30EMA will likely bring the price back down to the Support Zone and with that many points of contact, increases the probability that the price will fall through. I expect that next support area to be at the Daily 200EMA of which the price will be around $2,000. The psychology of that even number being at the 200EMA after a 2-legged pullback in a bull market screams support zone target. Once we hit this price area, I am looking for a strong bull signal and confirmation bars to enter a long. 💡 Trade Idea 💡 Long Entry: $2,080 🟥 Stop Loss: $1,920 ✅ Take Profit #1: $2,240 ✅ Take Profit #2: $2,560 ⚖️ Risk/Reward Ratio: 1:3 🔑 Key Takeaways 🔑 1. Four legs up in a bull trend, final strong bull candle followed by a strong bear candle. 2. Contact with Resistance Area above $2,500 3. Strong Reversal Candle closing below Daily 30EMA 4. Likely to fall below Support Zone, look for Long Entry at Daily 200EMA 5. RSI at 40.00 and Below the Moving Average with a gap to fill, supports a slight pullback and then fall. 💰 Trading Tip 💰 The longer a trend continues after 3 legs, the probability of that trend continuing lessens. Because of this decreased probability, we ought to reduce our risk when entering trades. ⚠️ 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 Follow to learn more about: 1. Reading Price Action 2. Chart Analysis 3. Trade Management 4. Trading Psychology
INDEX:ETHUSDLong
by TraderEngineering
1
SEI → Going for a Third Leg Up! Reaching Prices Over $1.00?SEI has been marching in a bull run since October of 2023 and has two strong legs up so far. We appear to be gearing up for a third, is this the time to enter a long position? How do we trade this? 🤔 SEI has been a top mover recently and with such bullish strength, we should only be looking at long positions. It was reasonable to long $0.02 ago at $0.665 for at least a 1:1 Risk/Reward scalp to the top of the bull channel. Stop loss placed below the previous low of $0.565, take profit set at $0.82. It's also reasonable to take half profits at 1:1 Risk/Reward and swing the rest to 1:2 Risk/Reward at a second take profit of $0.975. 💡 Trade Idea 💡 Short Entry: $0.663 🟥 Stop Loss: $0.555 ✅ Take Profit: $0.820 ⚖️ Risk/Reward Ratio: 1:1 🔑 Key Takeaways 🔑 1. Strong bull channel with small pullbacks. 2. Two legs up with a third beginning. 3. Signs of support on the Daily 30EMA. 4. RSI at 53.00 and above the Moving Average, supports long bias. 5. Bitcoin may have another retest of the $48,000 area which should boost the crypto market. 💰 Trading Tip 💰 It's reasonable to take half profits at the first resistance target in a long trade, or the first support target in a short trade. Using a 1:1 Risk/Reward Ratio for your first target, you can move your stop loss up to your entry price, locking in profits. This allows you to watch the rest of the trade be executed without worry of losing money. This helps improve trading psychology and the equity in your account. ⚠️ 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 Follow to learn more about: 1. Reading Price Action 2. Chart Analysis 3. Trade Management 4. Trading Psychology
Long
by TraderEngineering
UNI → Continuing in the Trading Range! Short Here? Or Long Soon?Uniswap has failed to break out of the 19th-month trading range between $4.00 and $7.30 on four occasions. Should we continue to look for a short entry? How do we trade this?  🤔 My previous Uniswap analysis showed a couple of good short entries just before and just after the price attempted to break the trading range resistance. Since then the price has fallen to the 30EMA and stagnated. We're currently in a situation where the proper distance to a stop loss is just above the previous high above the trading range resistance. We're also sitting on the Weekly 30EMA support and are lacking a sell signal. Until we have a re-test and failure of the trading range resistance with a strong sell signal, it's best to wait on the sidelines. Even then, we should remain cautious in what will likely become a strong crypto market bull run this year into next year, so I only advocate for a 1:1 Risk/Reward scalp. 💡  Trade Idea  💡 Short Entry: $6.85 🟥 Stop Loss: $8.55 ✅ Take Profit: $5.150 ⚖️ Risk/Reward Ratio: 1:1 🔑  Key Takeaways  🔑 1. UNI has yet to break out of the 18-month trading range. 2. Finding some support at Weekly 30EMA. 3. Wait for the price to get closer to trading range resistance. 4. Short scalp position is reasonable taking profit just below the Weekly 30EMA 5. RSI at 53.00, just below the Moving Average, supports pullback, then fall. 💰  Trading Tip  💰 Trading Ranges are two-legged traps for both bulls and bears. When the price rises toward the trading range resistance in two legs, the bulls expect more but don't get it and drive the price down when their trades are exited. The same goes for the bears in the opposite direction. The probability of profit is higher when longing the bottom of a trading range and shorting the top. In the case of this Uniswap chart, this trading range started after a long bear run, so it's reasonable to have a bear bias and short the trading range until its broken successfully. ⚠️  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 Follow to learn more about: 1. Reading Price Action 2. Chart Analysis 3. Trade Management 4. Trading Psychology
COINBASE:UNIUSDShort
by TraderEngineering
1
Cosmos(ATOM): Got Rejected!!! We Are Selling Soon!ATOM coin has been experiencing amazing growth, which led the price to move towards the upper resistance zone. We are looking here to catch a nice downward movement once we see the current re-test to successfully hold that zone. As we will see that zone to be strong, we will be opening a potential order here for sure, but we also need to bear in mind that we might see a strong recovery here! That's why we are waiting for that re-test to tell us more about the strengths or weaknesses of ATOM! Swallow Team
Short
by SwallowPremium
9
ICP → Pullback to Support Zone Over? Time to Long? Almost!ICP ran three pushes up in an ascending wedge reaching $16.33, followed by a pullback with three pushes down and a strong bull signal. Is it time to long? How do we trade this? 🤔 A long entry could be justified here. Here's what we have in favor of the long bias; Three pushes up in a bull channel ending at $16.33, followed by three pushes down in a micro-bear channel with strong bull signal bars, and we have a good follow-through bars leading up to the price action being just above the Daily 30EMA. What would give us maximum justification is a re-test of the Daily 30EMA as support to add probability to our long. However, I do not believe this is required to justify a long entry. I believe we need to be conservative longing at this stage in the crypto market, which is why I only advocate for a 1:1 scalp at a lower-than-maximum position size allowed for your trading strategy. I think Bitcoin and Ethereum have a larger pullback on the horizon, but do believe the market will come up a bit before it goes down. 💡 Trade Idea 💡 Long Entry: $12.32 🟥 Stop Loss: $9.15 ✅ Take Profit: $15.50 ⚖️ Risk/Reward Ratio: 1:1 🔑 Key Takeaways 🔑 1. Three pushes up into an ascending wedge. 2. Micro Bear Channel forms with three pushes down. 3. Strong bull signal bars on each push down. 4. Not required, but suggested to wait for re-test of Daily 30EMA as support. 5. RSI at 57.00 and above the Moving Average, supports long bias. 💰 Trading Tip 💰 The longer a trend continues after 3 legs, the probability of that trend continuing lessens. Because of this decreased probability, we ought to reduce our risk when entering trades. ⚠️ 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 Follow to learn more about: 1. Reading Price Action 2. Chart Analysis 3. Trade Management 4. Trading Psychology
Long
by TraderEngineering
1
ICP → Internet Computer Running Out of Gas with Ascending Wedge?ICP gave us another push up after we broke the Support Zone and established support. Now we see ICP coming down to test the Push #2 high of $11.80. The price is consolidating to the upside in an ascending wedge pattern, should we short? How do we trade this? 🤔 It is not time to short because we're still in the ascending wedge pattern and have not failed to make new highs and new lows. The earliest we should be entering a trade is when the price attempts to make a new high, fails and has broken out of the wedge. We're looking for a sell signal (bear bar closing on or near its low with a wick top) followed by a confirmation bar (strong bear bar closing on or near its low). The likely price area to enter the short will be around $13.00, but we're still a ways from the target, so we'll have to watch the candles print to size up our entry. A higher probability of profit trade is a 1:1 short scalp to the Support Zone, making the assumption that this will play out as a pullback rather than a bear run. We need to keep an eye on Bitcoin as it nears $45,000 again. I suspect it will fail to break the neckline but until we confirm that, we can trade as if it won't. 💡 Trade Idea 💡 Short Entry: $13.00 🟥 Stop Loss: $17.00 ✅ Take Profit: $8.98 ⚖️ Risk/Reward Ratio: 1:1 🔑 Key Takeaways 🔑 1. Three Pushes Up from Ascending Triangle Breakout 2. Ascending Wedge Forming 3. Look for Double Top Wedge Breakout to Short 4. Watch Bitcoins Possible Reversal from $45,800, Impact on Alt Coin Market. 5. High RSI at 63.00 below Moving Average, Supports Pullback to Support Zone. 💰 Trading Tip 💰 Ascending Wedges signal an increased probability of a bear breakout. Combined with three pushes up in a bull trend and strong sell bars (candles with large wicks on their tops), creates conditions where a counter-trend trade is reasonable. ⚠️ 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!
Short
by TraderEngineering
12
ADA → Cardano Threatening to Fall to Support. Should We Short?ADA closed the large bull gap from our previous analysis and found support at the large bull candle open. We did not get a higher high and Bitcoin is showing signs of a pullback. Should we short here? How do we trade this? 🤔 We should not short ADA on the Daily timeframe. The time to short was after the double top reversal near the $0.60 price range, we're too far away from the proper stop loss placement relative to Support Zone #1. You can find short trades on the 1HR timeframe or lower but for the Daily/4HR timeframe, we need to look for long entries. We can wait for a bounce on Support Zone #1 to enter a long, but the crypto market may be looking at a more significant pullback. It's difficult to tell how the alt coin market will react to say, a 30% Bitcoin pullback. The point is, don't think that Support Zone #2 isn't a probable target. Either zone is reasonably to long, but we need to wait for the buy signal and confirmation bars before entering. A good buy signal is one with a long wick on the bottom at least 1/3 the size of the body closing on or near its high. A confirmation candle will be a strong bull candle closing on or near its low following the buy signal buy 1 to a few bars. Until then, it's best to trade a different currency pair and wait for a good long opportunity here on ADA. 💡 Trade Idea 💡 Long Entry: $0.4210 🟥 Stop Loss: $0.3734 ✅ Take Profit #1: $0.4690 ✅ Take Profit #2: $0.5640 ⚖️ Risk/Reward Ratio: 1:3 🔑 Key Takeaways 🔑 1. Large Bull Bar Gap Closed. 2. Strong Support on the Daily 30EMA. 3. Lower High after the 30EMA bounce. 4. Bad Risk/Reward Ratio for a short, wait for a long setup at Support Zone #1 or Support Zone #2 5. Bitcoin Showing Strong Reversal Signals, Impacts Market Sentiment. 💰 Trading Tip 💰 It's reasonable to take half profits at the first resistance target in a long trade, or the first support target in a short trade. Using a 1:1 Risk/Reward Ratio for your first target, you can move your stop loss up to your entry price, locking in profits. This allows you to watch the rest of the trade execute without worry of losing money. This helps improve trading psychology and the equity in your account. ⚠️ 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 Follow to learn more about: 1. Reading Price Action 2. Chart Analysis 3. Trade Management 4. Trading Psychology
KRAKEN:ADAUSDLong
by TraderEngineering
MATIC → Polygon Showing Reversal Signals? A Short Scalp is Near!MATIC (Polygon) is holding above the Daily 200EMA support and has yet to break it after making contact 5 times since breaking it. So why is a short scalp reasonable? How do we trade this? 🤔 We have a few good reasons to be looking for a counter-trend trade; There have been several sell-offs in the $0.95-$1.10 range, a very strong sell-off at $1.10, the 200EMA support has been tested 5 times which adds to the probability it will be broken, and the RSI is at 50.00 and below the moving average. These data points tell us it's time to start looking for counter-trend setups, but we cannot enter a trade until we see confirmation to enter. What we need is a final test of the $0.98 area to get a good entry around $0.93-$0.95. From there, we can short half of our position to the 200EMA ($0.79), take profits, move our stop loss up to our entry price, and then swing the rest of the position down to the Support Zone at $0.665. Taking profits at the 200EMA is about a 1:1 Risk/Reward if our stop is placed just above the previous high at $1.11. That is a reasonable scalp, and the rest, being a bit lower probability of success, allows us to swing the second half of our position without the worry of losing money. We could repeat this approach until either the 200EMA Support breaks or the $1.10 high breaks and stops us out, which lets us know the upward momentum isn't done yet. 💡 Trade Idea 💡 Short Entry: $0.95 🟥 Stop Loss: $1.11 ✅ Take Profit #1: $0.79 ✅ Take Profit #2: $0.67 ⚖️ Risk/Reward Ratio: 1:1.75 🔑 Key Takeaways 🔑 1. Several Sell Signals at Key Resistance area of $0.95 to $1.10 2. Strong Sell Signal After Hitting $1.10 3. Wait for One More Failed Attempt to break $0.95 4. Short a Sell Signal off of $0.95-$1.00 Price Area, Stop Loss above Previous High of 5. RSI at 50.00 and below Moving Average. 💰 Trading Tip 💰 It's reasonable to take half profits at the first support target in a short trade, or the first resistance target in a long trade. You can then move your stop loss up to your entry price and watch the rest of the trade execute without worry of losing money. This helps improve trading psychology and the equity in your account. ⚠️ 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 Follow to learn more about: 1. Reading price action 2. Chart analysis 3. Trade management 4. Trade psychology
MShort
by TraderEngineering
LINK → Chainlink Potential Triple Top! Short Scalp Opportunity?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! Like 👍 and comment if you found this analysis useful!
Short
by TraderEngineering
4
FTM → Is Fantom Gearing Up For a Short Scalp Opportunity? Yes.FTM broke out of its bull trend, failed to break above the Daily 30EMA and fell back down to $0.375. With Bitcoin and the rest of the crypto market following suit, are we ready to short? How do we trade this? 🤔 Since my last FTM analysis, I provided this updated chart depicting what I believed was a likely outcome of the price action. A pullback from the downward momentum to the Daily 30EMA followed by a failure to break it: FTM has begun to test the 30EMA and we have several data points that suggest a counter-trend trade is reasonable (probable); FTM has given us two legs down since breaking the bull trend, failed to break above the Daily 30EMA, RSI at 44.00 and below the moving average which gives FTM some room to fall. If you're not already in a short, then we need to wait for another confirmation before a trade is justified. What we need is a final test and failure to break the Daily 30EMA around the price area of $0.40. From there, we can short half of our position to the low of the current candle ($0.375), take profits, move our stop loss up to our entry price, and then swing the rest of the position down to the Daily 200EMA support at $0.325. Taking profits at the 200EMA is about a 1:1 Risk/Reward if our stop is placed just above the previous leg high at $0.445. That is a reasonable scalp, and the rest, being a bit lower probability of success, allows us to swing the second half of our position without the worry of losing money. We have to keep in mind that we're two legs into a micro bear trend after a three-legged bull run, this could be a two-leg trap. That's why we need confirmation below the Daily 30EMA to justify a short. 💡 Trade Idea 💡 Short Entry: $0.4175 🟥 Stop Loss: $0.4600 ✅ Take Profit #1: $0.3750 ✅ Take Profit #2: $0.3325 ⚖️ Risk/Reward Ratio: 1:2 🔑 Key Takeaways 🔑 1. Two legs down since breaking the bull trend 2. Failed to break above the Daily 30EMA 3. 9th Daily Candle Just Closed Below 30EMA 4. RSI at 44.00 and below the moving average which gives FTM some room to fall. 5. Bitcoin Showing Strong Reversal Signals, Impacts Market Sentiment. 💰 Trading Tip 💰 It's reasonable to take half profits at the first support target in a short trade, or the first resistance target in a long trade. You can then move your stop loss up to your entry price and watch the rest of the trade execute without worry of losing money. This helps improve trading psychology and the equity in your account. ⚠️ 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 Follow to learn more about: 1. Reading Price Action 2. Chart Analysis 3. Trade Management 4. Trading Psychology
Short
by TraderEngineering
3
BTC → Bitcoin Blasts Through Resistance Then Falls Down. Short?Bitcoin completed its measured move on January 7th and gave us some extra price action up to the $49,000 area. With a strong sell signal and now a follow-through bar reaching the Daily 30EMA, is it time to short? How do we trade this?  🤔 To justify a short trade, we need a Daily candle close below the 30EMA. The other data points all support a counter-trend trade: Measured Move Complete, Strong sell signal above key resistance area, RSI below the moving average around 50.00 with room to fall. I frequently reference the 4HR chart when trading the Daily timeframe. As you can see in the chart below, the 200EMA on the 4HR chart overlaps with the 30EMA on the Daily chart. Using that same point of reference as a key support level, we can look for a close below the 4HR 200EMA to justify our short. That also allows us to get an earlier entry into the position: Once we get that candle, we can justify a short scalp to the previous trading range/measured move mid-support at a 1:1 Risk/Reward Ratio. 💡  Trade Idea  💡 Short Entry: $42,650 🟥 Stop Loss: $46,950 ✅ Take Profit: $38,350 ⚖️ Risk/Reward Ratio: 1:1 🔑  Key Takeaways  🔑 1. Measured Move Completed Into Key Resistance Area. 2. Strong Sell Signal Above Measured Move Resistance. 3. Strong Sell bar falling to 30EMA 4. Wait for Daily Candle to Close below 30EMA. 5. RSI at 50.00 and below Moving Average. 💰  Trading Tip  💰 There is over a 60% chance of a measured move after the breakout of 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! Like 👍 and comment if you found this analysis useful!
INDEX:BTCUSDShort
by TraderEngineering
1
SEI → Bull Breakout and Beyond? Another Bull Run imminent!?SEI rose over 300% from December 18th to January 3rd, breaking out of the newly established bull channel. Now SEI has found support on top of the bull channel and is showing signs of going higher, is it time to long? How do we trade this? 🤔 We have three points of contact with the bull channel resistance line now acting as support. While SEI is *very* bullish, we need to be careful as the crypto market threatens to go into a pullback which could hinder the SEI price. We should wait for a pullback toward the Bull Channel top and look for a buy signal and confirmation to enter a long. Then it's reasonable to enter a 1:2 Risk/Reward Ratio long. Until then, let's wait on the sidelines for more price action and confirmation so the probability of profit is higher. 💡 Trade Idea 💡 Long Entry: $0.775 🟥 Stop Loss: $0.5825 ✅ Take Profit #1: $1.16 ⚖️ Risk/Reward Ratio: 1:2 🔑 Key Takeaways 🔑 1. Strong bull run with two strong legs up 2. Three points of contact with bull channel top 3. Price remains above Daily 30EMA 4. RSI is high and below the moving average, supporting a pullback. 5. Bitcoin Showing Strong Reversal Signals, Impacts Market Sentiment. 💰 Trading Tip 💰 Reversal trading is inherently low probability because you're betting against the trend. The tradeoff is your reward will be much higher if you swing trade it. This kind of trade is the inverse of trend trading, where the probability is higher but the reward is lower. ⚠️ 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 Follow to learn more about: 1. Reading Price Action 2. Chart Analysis 3. Trade Management 4. Trading Psychology
Long
by TraderEngineering
Ethereum(ETH): Will We Head Towards $3500 Soon? We are back with the ETH coin, where we see that after that major breakout near $2150 we had, a clean re-test price seems to be ready for another bullish movement sooner or later. As we are getting closer to the close of the yearly candle price, it seems to act like a "calm before the storm," where the price is making minimal moves but still teasing both buyers and sellers. We are looking at a bigger picture here for a potential bullish movement after breaking that upper resistance line (orange line). Once. we break and secure it we should be good for long-term movement towards $3500
Long
by SwallowPremium
ADA → Cardano Gearing up for a Reversal? Let's Answer.ADA has been on a strong bull run since October of this year and we've finally come to the end of a measured move and three legs up. Are we gearing up for a reversal? How do we trade this?  🤔 We don't have enough evidence for a short entry just yet, but we do have some key data points in our favor. We've completed a measured move to the current price, had three pushes up in a bull trend, two failed attempts to break $0.68, and a gap down below the large bull candle. What we're missing are the sell confirmation candles. ADA needs to break below the Daily 30EMA, close a strong bear candle, and possibly test the 30EMA as resistance before we enter a short. The re-test of the 30EMA as resistance isn't required, but would add to the probability of profit if achieved. Once these conditions are met, it's reasonable to enter a 1:1 Risk/Reward Ratio trade around $0.565, placing a protective stop around $0.70, which puts your take profit at $0.43 above the previous high or "Support Zone". This is a conservative trade because we have several areas of support to consider. 💡 Trade Idea 💡 Short Entry: $0.565 🟥 Stop Loss: $0.700 ✅ Take Profit: $0.430 ⚖️ Risk/Reward Ratio: 1:1 🔑  Key Takeaways  🔑 1. Potential Double Top after there pushes up. Bias to Short. 2. Large Pin Bar Top on Second Attempt. 3. Wait for break below Daily 30EMA to Enter Short. 4. Large Bull Bar after Breakout, Gap to Close. 5. RSI at 57.00 and below Moving Average. Bias to Short. 💰  Trading Tip  💰 Reversal trading is inherently low probability because you're betting against the trend. The tradeoff is your reward will be much higher if you swing trade it. This kind of trade is the inverse of trend trading, where the probability is higher but the reward is lower. ⚠️ 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!
KRAKEN:ADAUSDShort
by TraderEngineering
4
DOGE → First Sell-off Complete! Another Push to the Downside?Dogecoin, along with the rest of the crypto market, had a severe bear response to Bitcoins completion of its measured move. Are we in for another leg down? How do we trade this?  🤔 I don't think it's reasonable to short here, not yet at least. We need a little more recovery from the first sell-off toward the Resistance Zone at $0.0865. If we get a sell signal from that area, it's reasonable to short Doge on the Daily chart toward the initial support of $0.0675. Until then, it's best to wait on the sidelines for the RSI to come up, and the bears to recharge. It may be a while before Doge recovers and heads to a new high in this trend. The macro-trend is bullish in the crypto market, so we should be cautious when capturing these bearish movements on altcoins. 💡  Trade Idea  💡 Short Entry: $0.0835 🟥 Stop Loss: $0.0890 ✅ Take Profit: $0.0725 ⚖️ Risk/Reward Ratio: 1:1 🔑  Key Takeaways  🔑 1. Bull Channel Concluded with a Double Top Reversal. 2. Trend Changed to Trading Range then 1st Push Down. 3. Bounced off of 200EMA Support, wait for new Sell Signal. 4. RSI at 36.00 and below Moving Average. Bias to Short. 5. Wait for Sell Signal After Test of Resistance Area. 💰  Trading Tip  💰 Channels are often concluded not with a strong reversal, but first a stall of the trend with a trading range. A reversal is likely if the trading range comes at the end of a three-leg trend. ⚠️  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!
Short
by TraderEngineering
ETH → Ethereum Reversal? This Trade Setup Takes Advantage.Ethereum has shown great signs of bull strength as Bitcoin and the crypto market burn hot into this bull run. The time for entering longs on the higher timeframes has likely come to an end. So is it time to short? How do we trade this? 🤔 ETH does not have any sell signals yet, but we did just break into a major resistance area at $2,500. With four pushes up, Bitcoin near a strong resistance area as well ($46,000-$48,000), it's reasonable to start looking for counter-trend trades. I believe there is a short opportunity just below $2,500 down to the Daily 30EMA or the previous Support Zone. To justify this trade, we need a strong sell signal in the current price range around $2,600. Once the $2,500 price area is broken, a potential test of that area should once again fail and give us a confirmation bar closing on or near its low. At this time, It will be reasonable to short scalp ETH at a 1:1 Risk/Reward Ratio. 💡 Trade Idea 💡 Short Entry: $2,500 🟥 Stop Loss: $2,740 ✅ Take Profit: $2,300 ⚖️ Risk/Reward Ratio: 1:1 🔑 Key Takeaways 🔑 1. Four Pushes up from Breakout. 2. Entered Major Resistance Level. 3. Short Resistance Level with Proper Bear Signal. 4. RSI at 70.00 and above Moving Average, Supports Short. 5. Watch Bitcoins Response to Current Price Area. 💰 Trading Tip 💰 Never enter a counter-trend trade without the proper signal *and* confirmation. A signal bar will usually have a long wick, and a confirmation bar will follow shortly after the signal bar and have a strong body closing on or near its low or high (bear or bull). ⚠️ 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!
INDEX:ETHUSDShort
by TraderEngineering
1
SEI → 400% Long in Under 2 Months! More to Come!? Let's Answer.SEI has been one of the top movers in the crypto market in the last 30 days and by looking at this chart, you can see why. A 400% move to the upside in the last 47 days! Is there any more steam left on the train? How do we trade this? 🤔 Strong push to the resistance line, looks to be the end of the second leg up, RSI is very high at 80.00 and above the Moving Average, we need to wait for a pullback. The crypto market is at a crucial point where a reversal is possible. We need to wait for a pullback on this chart to the channel support around $0.40 and get confirmation of a continuation with a buy signal. At that time, it's reasonable to long for a third leg in the channel up to the $0.60 price area. It's also reasonable to take half profits at 1:1 for a third leg in a trend, then move the stop loss up to your entry price to secure profits. Your position size should also be smaller since we're later in the trend, the probability is now less that the trend will continue and your risk needs to be sized proportionally. 💡 Trade Idea 💡 Long Entry: $0.42 🟥 Stop Loss: $0.33 ✅ Take Profit: $0.60 ⚖️ Risk/Reward Ratio: 1:2 🔑 Key Takeaways 🔑 1. Bull Channel, Bias to Long. 2. Two Pushes Up, Looking for a Third. 3. Above Daily 30EMA, Bias to Long. 4. RSI at 80.00 and above Moving Average, Supports Pullback. 5. Look for Support at Previous Resistance, Look for 1:2 Long. 💰 Trading Tip 💰 The probability that the trend will continue weakens toward the end of it. Trends typically have three defined legs and while they can have more, it's reasonable to assume the probability of a continuation is lower at this stage. This means your position size should be lower to account for that decreased probability. ⚠️ 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!
Long
by TraderEngineering
2
AVAX → Avalanche At Resistance! Reversal Time? Let's Answer.Avalanche had one more nudge toward the 2021/2022 resistance level since my last analysis, creating a bearish divergence and setting us up for a short trade. Should we short now? How do we trade this? 🤔 As stated in my last analysis and this one, we need a short signal and confirmation for justification to short AVAX. Our proposed third push up from the previous analysis never rendered a sell signal and has now created a bearish divergence with the RSI. This means the price had a higher high and the RSI a lower high, signaling weakening bulls. This does *not* mean we enter a short now, it's too risky without more price action. We need a strong sell signal and preferably, a break below the channel support and a re-test for resistance. Then short down to the Daily 200EMA at a 1:2 Risk Reward Ratio. It's also reasonable to take half profits at a 1:1 Risk Reward (around $28.00) and swing the remainder at a 1:3 risk reward or until a reversal signal shows itself. 💡 Trade Idea 💡 Short Entry: $34.00 🟥 Stop Loss: $25.00 ✅ Take Profit: $40.00 ⚖️ Risk/Reward Ratio: 1:2 🔑 Key Takeaways 🔑 1. Bull Channel, Bias to Long! 2. Three Pushes up in Trend with Sell signal, Signal to Change Trend. 3. Gap to Second Push Support Line. 4. RSI at 63.00 and below Moving Average, Divergence. 5. Wait for Short Confirmation bar before entering a position. 💰 Trading Tip 💰 Divergences between price action and the RSI are not strong signals on their own. Combined with three pushes up in a trend, a major resistance area, and a sell signal, renders a higher probability of profit for reversal trading. ⚠️ 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!
Short
by TraderEngineering