TURBOUSDT - Time for a Retracement (SHORT)Hey Turbo traders! Turbo experienced a rapid surge within a single day and now it's time to analyze the next potential moves. Let's dive into the latest price action and what to expect next.
Surge and Retest
Rapid Surge: Turbo surged dramatically within one day, showcasing impressive bullish momentum.
Retest of mOpen: After the surge, the price retested the mOpen, a key area of interest.
Formation of a Head and Shoulders Pattern
Head and Shoulders Pattern: It looks like Turbo is forming a Head and Shoulders pattern, a classic bearish reversal signal.
Right Shoulder Formation: Now, we need to cool down and form the right shoulder of this pattern.
Key Levels and Trading Strategy
1.) Short Trade Setup:
Entry Point: We placed a short trade at the monthly open (mOpen) as it presents a great risk-to-reward (R:R ratio)
Target Profit (TP): The TP for this short trade is the Fibonacci 0.382 level, around $0.0042. This level also coincides with a previous daily support level, making it a significant target.
2.) Support Area:
Fib 0.382 Level: This level is where we expect the price to retrace and find support.
3.) Monitoring Volume and Price Action:
Volume Trends: Monitor the volume closely. Decreasing volume during the retracement would support the formation of the right shoulder.
Price Action: Watch for bullish signals and price action patterns that indicate a potential long trade opportunity after closing the short.
Strategy: Executing the Short and Preparing for the Next Move
Executing the Short: Enter the short trade at the monthly open with a TP at the Fib 0.382 level around $0.0042.
Potential Long Trade: If we see bullish confirmation at the support area, it might be a good opportunity to open a new long trade. Keep an eye on the volume and price action for entry signals.
What are your thoughts on this analysis? Are you in on the short trade and preparing for a long entry? Share your insights below!
