ALGO has delivered an impressive +124% rally from $0.1518 to $0.336 in just 25 days, completing a 5-wave Elliott impulse right into the yearly open resistance.
We are now in a correction phase, and the current structure is showing a head and shoulders pattern, with the right shoulder currently forming.
Let’s break down the key levels and setups.
🧩 Technical Breakdown
➡️ ABC Corrective Structure:
➡️ Fib Retracement Confluence:
Conclusion: Long opportunity zone between $0.2656–$0.2574
Trade Setups
🔴 Short Setup:
Why? ALGO has lost dOpen and pdOpen — a bearish sign for downward continuation.
🟢 Long Setup:
🛠 Indicator Note
I’m using my own indicator called "DriftLine - Pivot Open Zones [SiDec]" for this analysis, which I recently published.
✅ Feel free to use it in your own analysis!
Just head over to my profile → “Scripts” tab → apply it directly to your charts.
💡 Educational Insight: Why Confluence Matters
High-probability trades aren’t based on just one tool or level — they come from confluence, where multiple signals align: fib levels, VWAP, liquidity pools, price structures , and key levels.
For example, in this ALGO setup, it’s not just the fib retracement or just the VWAP — it’s the stacking of all these elements together that creates a precise zone with a better statistical edge.
✍️ Lesson: Don’t chase trades off single signals; stack tools for confirmation.
Patience, confirmation, and confluence — as always, the keys to high-probability setups. 🚀
_________________________________
💬 If you found this helpful, drop a like and comment!
Want breakdowns of other charts? Leave your requests below.
We are now in a correction phase, and the current structure is showing a head and shoulders pattern, with the right shoulder currently forming.
Let’s break down the key levels and setups.
🧩 Technical Breakdown
➡️ ABC Corrective Structure:
- Targeting wave C near the trend-based fib extension (TBFE) at $0.2574
➡️ Fib Retracement Confluence:
- 0.382 retracement of the entire 5-wave move → $0.2656
- Previous weekly open (pwOpen) → $0.2639
- Liquidity pocket likely to be swept
- Anchored VWAP from the $0.1518 low (start of the bullish trend) → currently at $0.2532, acting as a major support layer
Conclusion: Long opportunity zone between $0.2656–$0.2574
Trade Setups
🔴 Short Setup:
Why? ALGO has lost dOpen and pdOpen — a bearish sign for downward continuation.
- Entry Zone: Between dOpen and pdOpen
- Stop-loss: Above dOpen
- Target (TP): 0.382 fib retracement (~$0.2656)
- R:R: ≈ 1:3.5
🟢 Long Setup:
- Entry Zone: Laddered Entries between $0.2656–$0.2574
- Stop-loss: Below anchored VWAP (~$0.2532)
- Target (TP): ~$0.2785+
- R:R: ≈ 1:2.65
🛠 Indicator Note
I’m using my own indicator called "DriftLine - Pivot Open Zones [SiDec]" for this analysis, which I recently published.
✅ Feel free to use it in your own analysis!
Just head over to my profile → “Scripts” tab → apply it directly to your charts.
💡 Educational Insight: Why Confluence Matters
High-probability trades aren’t based on just one tool or level — they come from confluence, where multiple signals align: fib levels, VWAP, liquidity pools, price structures , and key levels.
For example, in this ALGO setup, it’s not just the fib retracement or just the VWAP — it’s the stacking of all these elements together that creates a precise zone with a better statistical edge.
✍️ Lesson: Don’t chase trades off single signals; stack tools for confirmation.
Patience, confirmation, and confluence — as always, the keys to high-probability setups. 🚀
_________________________________
💬 If you found this helpful, drop a like and comment!
Want breakdowns of other charts? Leave your requests below.
Trade closed: target reached
Short trade target reached!The ABC correction completed perfectly at the 1.0 Trend-Based Fib Extension.
🏆 Mastering Fibonacci for precision trading
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🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
Related publications
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.
🏆 Mastering Fibonacci for precision trading
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
Related publications
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.