ICP → Long at $9!? A Buy Opportunity is Waiting!ICP did not put in a 4th leg since my last analysis and instead, the short opportunity presented itself after the third push on schedule. Should we short here?
Previous Analysis:
How do we trade this? 🤔
Shorting at the bottom of this bull trend is not ideal. Our short opportunity was at $18 per my last analysis. Now that we're at bull channel support, we need to wait for a breakout to the downside with confirmation support has become resistance. The likely outcome of such a breakout is a 2-legged pullback from the bull channel leading us to the Support Zone.
We should be looking for long positions at this point. With Bitcoin and the crypto market cooling off, we should expect more downside. This means short scalping on lower timeframes and fading long positions on higher timeframes. I'm looking for a strong bull signal bar closing on or near its high off of the Support Zone, followed by a confirmation candle to enter a 1:4 Risk/Reward long position. Take half profits at 1:1 Risk/Reward, and swing the latter half of the position to 1:4 or until a reversal signal appears.
💡 Trade Idea 💡
Long Entry: $9.00
🟥 Stop Loss: $6.85
✅ Take Profit #1: $11.15
✅ Take Profit #2: $17.60
⚖️ Risk/Reward Ratio: 1:4
🔑 Key Takeaways 🔑
1. Three pushes up into a bull channel followed by a retrace to support.
2. Wait for a breakout below the bull channel and Daily 200EMA.
3. Look for a long entry above the Support Zone
4. Target is just shy of the previous high of around $18 for the final take profit.
5. RSI at 45.00 and above the Moving Average, room to 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 and start looking for reversals.
⚠️ 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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