Breakout Play: Demand Zone Reversal with High R:R TargetOverview :
This idea focuses on a breakout trade for Solana (SOLUSD), leveraging recent price action and volume signals at a key demand zone. The setup is designed for a high risk-to-reward ratio based on technical structure and confirmation tools.
Trade Setup & Logic:
• Entry: Price retraced to retest the 225–230 support zone, which previously acted as resistance and now converts to demand. Entry is triggered by a strong bullish candle closing above 231.5 with an uptick in volume, confirming renewed buyer interest.
• Stop Loss: Placed below 225, the lower bound of the highlighted demand area, to minimize risk if support fails immediately.
• Targets:
Target 1: 241 (first major supply zone and prior swing high).
Target 2: 253.70(multi-week trend resistance, aligns with fib extension and liquidity clusters).
• Risk-Reward: A minimum R:R of 1:2 is targeted. Stop loss is tightly managed once price moves in favor, with trailing stop as price approaches Target 1.
Technical Factors:
• Support/Resistance: The purple highlighted zone shows a confluence of prior reversal points and volume spikes, indicating strong institutional activity.
• Structure Confirmation: Entry is only valid upon a clear bullish reversal signal above the support zone and confirmation of above-average volume.
• Market Context: Recent downtrend is breaking, with higher lows and higher highs. Supply absorption observed at the retest supports the bullish thesis.
Trading Plan:
• Wait for price to close above 231.5 with volume confirmation before entering.
• Adjust stop loss to breakeven after Target 1.
• Take partial profits at Target 1, let remainder ride up to Target 2.
Final Notes:
Discipline and patience are essential—trade only on confirmation to avoid false breakouts. Self-research is recommended, and risk should always be managed per personal capital allocation protocols
Disclaimer: This is a technical analysis idea, not financial advice. Please perform your own due diligence before trading.
