A Reversal Setup for BNXUSDT

Jun 29, 2024

Following large selling pressure during the beginning of the trading session, we see a volume spike at the bottom of the range and indication of a trend reversal into key moving averages which I will be using as profit targets.

The volume spike is a key indication of the end of a trend, it provides confirmation that the short-sellers are either covering in this zone (buying pressure) or that a whale has just entered into their long term position (buying pressure.)

Using fibonacci and S/R, we can map out a clear profit target back towards $1 - I'm choosing 0.89 conservatively.

Risk = 5%, reward = 27%

Ratio = 5/1

These are the exact setups that provide high Reward for risk and clear confirmation from the volume spikes. Backtested results show 70-75% success.

Expectancy = 3.75

Jun 30, 2024

Note

Closed the trade for a 25% profit at 0.84.

US 14:30 (UK time) standard opening is expected to fade the current move. Wanted to ride to my 0.89 target but happy to take my risk off the table for now.

Thanks for following along and I hope this was useful as a reversal play setup demonstration.