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!
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