GOATSEUS MAXIMUS IS STILL NO.1 MEME FOR THIS BULL RUNFalling Wedge:
A falling wedge pattern is observed, which generally signals a bullish reversal. This pattern typically forms when the price consolidates between two downward-sloping trendlines that converge.
The breakout point is expected above the upper trendline, indicating a potential bullish move.
Resistance and Support Zones:
Resistance Zones are highlighted in orange above the price levels, indicating areas where price may face selling pressure.
Support Zone is formed at the lower trendline of the wedge, which has been tested multiple times, showing that buyers are stepping in around these levels.
Indicators:
VMC Cipher shows potential bullish divergence, suggesting momentum is shifting upwards.
RSI (Relative Strength Index) is near the neutral zone (around 50), indicating no extreme overbought or oversold condition. A push above 50 could signal increased bullish momentum.
Stochastic Oscillator is in an upward trajectory from oversold levels, suggesting a short-term bullish reversal.
HMA Histogram is turning positive, which may indicate an upward trend reversal.
Volume Note:
Lack of volume data suggests that it’s essential to observe if any breakout is accompanied by significant volume. This would confirm a true breakout from the wedge pattern.
Trading Plan
Entry Strategy:
Breakout Entry: Enter a long position if the price breaks and closes above the upper trendline of the falling wedge with a strong bullish candle. Confirm breakout strength with an increase in RSI and a positive crossover in the Stochastic.
Early Entry: For aggressive traders, an early entry could be made near the current level, expecting a breakout soon, but with a strict stop-loss.
Take Profit Targets:
Target 1: Place the first target at the nearest resistance zone (around $0.80).
Target 2: Secondary target can be set at the upper resistance zone around $0.95 to $1.00, as indicated by the blue arrow.
Stop-Loss:
Set a stop-loss just below the recent low within the wedge, around $0.61, to protect against a false breakout or continuation of the downtrend.
Risk Management:
Use a risk-reward ratio of at least 1:2 or higher to ensure a profitable trade setup.
Adjust the position size to account for volatility and maintain proper risk per trade (e.g., 1-2% of portfolio per trade).
Trailing Stop:
Consider implementing a trailing stop once the price approaches the first target to lock in profits as the trade progresses.
Monitoring Indicators:
Monitor the RSI and Stochastic to ensure they continue to support the bullish sentiment.
Watch for any change in the HMA Histogram, which could signal early warning signs if it shifts back to a downtrend.
