DOGE → Updated Double Top Analysis! Our First Target is $0.07?Doge is failing to retest the $0.1075 level and has instead meandered sideways in the $0.9500 range. Are we in a position to short here? Long? Or simply wait on the sidelines?
How do we trade this? 🤔
We need to wait. We are still in a bull channel which means our bias ought to be long, but we have several datapoints that counter that bias.
1. Three pushes up, a typical number of legs in a channel before the probability of trend change exceeds the probability that the trend will continue.
2. Double Top reversal signal. These can fail, but coupled with the three pushes, increases the probability of a trend change.
3. Bitcoin showing signs of trend change and as a leading market indicator may drag Doge down with it.
We need to wait for a break below the Weak Support line and the Support Zone. The break is the bear signal, then we need a retest of the Support Zone as resistance with a strong bear candle closing on or near its low to confirm the price can't make it back up. At this time, its reasonable to short a 1:3 Risk/Reward placing a protective stop just above the previous Support Zone. Take half profits at 1:1 Risk/Reward ($0.082 area), and final profits at 1:3 ($0.69 area). It's also reasonable to swing the latter half of your position beyond 1:3 R/R, until a proper buy signal appears.
💡 Trade Ideas 💡
Short Entry: $0.84
🟥 Stop Loss: $0.89
✅ Take Profit: $0.69
⚖️ Risk/Reward Ratio: 1:3
🔑 Key Takeaways 🔑
1. Bull Channel, Bias to Long.
2. Three Pushes Up, Double Top Reversal Intact.
3. Need to Break Weak Support and Support Zone to Short.
4. RSI at 46.00 and below Moving Average. Bias to Short.
5. Watch Bitcoin for trend change, may drag the market down.
💰 Trading Tip 💰
Trading against the trend carries a low probability of success, but a much higher reward with a low risk.
⚠️ 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!
