Based on the 1-hour chart with Elliott Wave analysis for ADAUSD, I have detailed my plan for a short position.
I am entering the trade at the current price level of approximately 0.432 USD. This level is identified after the completion of wave (b) and at the beginning of wave (c).
I have set my initial target at the 1.000 Fibonacci extension level of wave (c), which is around 0.403 USD. If the bearish movement continues, my secondary target is at the 1.618 Fibonacci extension level of wave (c), around 0.378 USD.
To manage risk, I will place a stop loss just above the recent high of wave (b) at around 0.445 USD. This stop loss level will help protect against any unexpected upward movements while allowing for typical market fluctuations.
I will monitor the trade closely as it progresses towards the target level. If the price approaches the target and shows signs of support or reversal, I will consider taking profits and adjusting the stop loss to break even or slightly lower.
By following this strategy, my goal is to take advantage of the expected downward movement in ADAUSD while effectively managing risk with clear entry, target, and stop loss levels.
I am entering the trade at the current price level of approximately 0.432 USD. This level is identified after the completion of wave (b) and at the beginning of wave (c).
I have set my initial target at the 1.000 Fibonacci extension level of wave (c), which is around 0.403 USD. If the bearish movement continues, my secondary target is at the 1.618 Fibonacci extension level of wave (c), around 0.378 USD.
To manage risk, I will place a stop loss just above the recent high of wave (b) at around 0.445 USD. This stop loss level will help protect against any unexpected upward movements while allowing for typical market fluctuations.
I will monitor the trade closely as it progresses towards the target level. If the price approaches the target and shows signs of support or reversal, I will consider taking profits and adjusting the stop loss to break even or slightly lower.
By following this strategy, my goal is to take advantage of the expected downward movement in ADAUSD while effectively managing risk with clear entry, target, and stop loss levels.
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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.