UMABTC 8h long setup; Breakout of 1.5 year downtrendTA explained
Starting with the bigger picture for UMA using the 1W TF. A long lasting downtrend (starting at Sept 2020) was broken at the start of November with a very strong bullish weekly candle, after which the price pullback and retested the broken TL.
Zooming into the 8H TF we can see two interesting things. First we see the price retested the descending TL twice. Second interesting fact is the second time it tested the trendline it also aligns with the center of the demand zone on the left.
Last thing to consider is the break of the local descending trendline. After getting rejected 3 times, the fourth time price was able to break through. With this little pullback we might already start the upward continuation. If not a deeper retracement could happen by retesting the latest low and creating a double bottom which would give us our second entry as well:
Trade setup
Entry zone: 0.0002022 - 0.0002174
TP1: 0.0003279
TP2: 0.0004411
TP3: 0.0005539
SL: 0.0001745
RR: 9.93
Max leverage: na
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