Market

ADA – Slide to $2.5 before further upsurge for BITFINEX:ADAUST by soaringtothestars

Multi Timeframe Analysis

Hint: Prepare for the sell; then take a long at $2.5

Recommendation: Confident short

I purchased Cardano ADA for 90 cents months back. Relentless COVID news on Cardano developments and the upswing of BTC had taken price to 3.0 – a 300% gain for many early buyers. Noob investors continue to rally ” to the moon”- but be wary. The crypto will crash to 2.5 shorty due to extremely overbought levels on the Daily and Weekly RSI . The VIX fear index registers extremely low levels signifying a huge drop in volatility . Wave divergence is further observed on oscillators.

A further observation is a massive institutional order block sitting at 2.5. For hedge funds to collect their profit, price must drop to this zone. This will be the best level to make future purchases

MARKET ORDER RULES

Market order position upon the confluence of valid entry rules on the 4H or 1H chart.

-=ENTRY RULES=-

Trading philosophy: Don’t short at the lowest of the bearish momentum nor do we long at the peak of a bullish impulse. The safest entries are at the end of a retrace on the 38.2%, 50%, 61.8% or 78.6% fibonacci back in the direction of the master trend.

Note: I use Daily/4H or 4h/1H market structures with wave analysis to prep for potential entries. The RSI , MACD and EMA indictors are confirmation for entries at the 4H or 1H timeframe

For SHORT:

4H chart should confirm that the bullish retrace had turned bearish in the direction of master trend. The MACD should have dropped below zero signifying a bearish environment. Price would have dropped below the 10 and 20 EMA . For good measure, check that the 4h and D1 RSI is below the 50 signal line

For LONG:

4H chart should confirm that the bearish retrace had turned bullish in the direction of the master trend. The MACD should have gone above zero signifying a bullish environment. Price had gone above the 10 and 20 EMA . For good measure, check that the 4h and D1 RSI is above the 50 signal line

About me

I am not a financial advisor nor a signal provider. These are the opinions of a 20-year private trader in the legal profession as well as a businessman diversified in the tech and hospitality industries. My favored tools of the trade include wave analysis, price action on the 4H to Weekly timeframes and institutional order flow.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button