SOLUSDT SHORT
Short (SELL)
Entry Trigger: Confirmation of a bearish breakout from the wedge pattern.
Stop Loss: Placed at 145.500 - 146.500
Take Profit: Targeting 128.500 - 120.500
Detailed Explanation:
Bearish Wedge Formation:
The yellow trendlines form a bearish wedge, typically indicating a potential downward breakout. The wedge shows a series of higher lows and lower highs converging, creating pressure that might lead to a price drop once support is broken.
Confirmation: Wait for a break below the lower yellow trendline to confirm the bearish breakout. A strong bearish candle closing below this line would strengthen the bearish bias.
Stop Loss (145.500 - 146.500):
The stop loss is strategically placed above the upper boundary of the wedge and above significant resistance levels. This zone provides a buffer against potential false breakouts or short-term volatility spikes.
Risk Management: Keeping the stop loss in this range limits potential losses if the price moves against the position, ensuring disciplined risk management.
Take Profit (128.500 - 120.500):
First Target (128.500):
Support Zone: This level is aligned with previous support and a potential bounce zone. Itโs a conservative target, ensuring partial profit-taking before any major support levels.
Second Target (120.500):
Deeper Retracement: Aiming for a more significant price drop, this target lies within a major support zone, maximizing potential profit. It's essential to monitor price action as it approaches this level for signs of reversal or consolidation.
Indicators and Confirmation:
Watch for increasing selling volume on the breakout for additional confirmation. High volume adds credibility to the breakout and subsequent downtrend.
Momentum Oscillators: Utilize tools like RSI or MACD to check for bearish momentum. Overbought conditions or bearish crossovers can provide extra validation for the short entry.
Market Sentiment:
Keep an eye on market news related to SOL and the broader cryptocurrency market. Significant news can impact price movements and might require adjusting the strategy.
Potential Adjustments:
As the price moves favorably, consider trailing the stop loss to lock in profits while allowing the position to run. This can be done by moving the stop loss incrementally as the price hits new lows.
Re-evaluation: If the price action shows strong support at intermediate levels, re-evaluate the take profit strategy. Partial profit-taking at minor support zones can be considered to manage risk and secure gains.
Entry Trigger: Confirmation of a bearish breakout from the wedge pattern.
Stop Loss: Placed at 145.500 - 146.500
Take Profit: Targeting 128.500 - 120.500
Detailed Explanation:
Bearish Wedge Formation:
The yellow trendlines form a bearish wedge, typically indicating a potential downward breakout. The wedge shows a series of higher lows and lower highs converging, creating pressure that might lead to a price drop once support is broken.
Confirmation: Wait for a break below the lower yellow trendline to confirm the bearish breakout. A strong bearish candle closing below this line would strengthen the bearish bias.
Stop Loss (145.500 - 146.500):
The stop loss is strategically placed above the upper boundary of the wedge and above significant resistance levels. This zone provides a buffer against potential false breakouts or short-term volatility spikes.
Risk Management: Keeping the stop loss in this range limits potential losses if the price moves against the position, ensuring disciplined risk management.
Take Profit (128.500 - 120.500):
First Target (128.500):
Support Zone: This level is aligned with previous support and a potential bounce zone. Itโs a conservative target, ensuring partial profit-taking before any major support levels.
Second Target (120.500):
Deeper Retracement: Aiming for a more significant price drop, this target lies within a major support zone, maximizing potential profit. It's essential to monitor price action as it approaches this level for signs of reversal or consolidation.
Indicators and Confirmation:
Watch for increasing selling volume on the breakout for additional confirmation. High volume adds credibility to the breakout and subsequent downtrend.
Momentum Oscillators: Utilize tools like RSI or MACD to check for bearish momentum. Overbought conditions or bearish crossovers can provide extra validation for the short entry.
Market Sentiment:
Keep an eye on market news related to SOL and the broader cryptocurrency market. Significant news can impact price movements and might require adjusting the strategy.
Potential Adjustments:
As the price moves favorably, consider trailing the stop loss to lock in profits while allowing the position to run. This can be done by moving the stop loss incrementally as the price hits new lows.
Re-evaluation: If the price action shows strong support at intermediate levels, re-evaluate the take profit strategy. Partial profit-taking at minor support zones can be considered to manage risk and secure gains.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.