ATOMUSDT [Watchlist] : Bullish Structure Formation
Updated
The price action for 
ATOMUSDT (on the left side) is currently forming a bullish structure while facing a strong resistance around the 4.013 area after a first attempt on 11th-12th November which resulted in a false breakout. When looking backward, traders may notice a bullish structure formation initiated by a double bottom in September. This should attract traders' attention in a context where the market is within a bearish trend.
Overview: since the double bottom on Sept 05th and Sept 24th, the price action has made higher lows (in green on the chart) along the way. After a nearly 40% correction ended in Nov 22th, the price action found buyers in the 2.6 area (last higher low).
ATOMUSDT-ATOMBTC Convergence : traders may notice a convergence by looking at the price action for
ATOMBTC (on the right side) which demonstrates the same bullish structure noticed in the ATOMUSDT price action.
Risk management: given the overview, two options can be taken by traders.
1st option : traders may for a second retest of the previous support (i.e. 3.569 area) to take position. In that case, traders should place pending order along with a tight stop loss below the support.
2nd option (preferred one) : trader may wait for a breakout of the 4.013 resistance followed by a pullback to take position. In that case, an alert should be set for the crossing up of the price action.
My Trading Principles[reminder]:
- Risk/Reward ratio: since it is difficult to predict every market movement, it is suggested for traders to only look for trades with a R/R ratio of at least 1:3.
- Stop loss: in addition of the initial stop loss, if the price actually goes as predicted, traders should keep a trailing stop to keep some profit.
- Position Sizing: it is suggested for traders to stick to their position sizing strategy. As a rule of thumb, most retail investors risk no more than 2% of their investment capital on any one trade.
"Remember, plan the trade, trade the plan. Build that discipline."
I will keep updating this trade according to the future price action.
Please support this idea with your likes, thanks.
Best regards,
You can also follow me on :
=> Telegram : t.me/joinchat/Ep5oUhfHgdk3CI-jr-YLUQ
=> Twitter : twitter.com/JordanBadiabo
=> Instagram : instagram.com/jordan_badiabo
=> LinkedIn : linkedin.com/in/jordanbadiabo
ATOMUSDT (on the left side) is currently forming a bullish structure while facing a strong resistance around the 4.013 area after a first attempt on 11th-12th November which resulted in a false breakout. When looking backward, traders may notice a bullish structure formation initiated by a double bottom in September. This should attract traders' attention in a context where the market is within a bearish trend.Overview: since the double bottom on Sept 05th and Sept 24th, the price action has made higher lows (in green on the chart) along the way. After a nearly 40% correction ended in Nov 22th, the price action found buyers in the 2.6 area (last higher low).
ATOMUSDT-ATOMBTC Convergence : traders may notice a convergence by looking at the price action for
ATOMBTC (on the right side) which demonstrates the same bullish structure noticed in the ATOMUSDT price action.Risk management: given the overview, two options can be taken by traders.
1st option : traders may for a second retest of the previous support (i.e. 3.569 area) to take position. In that case, traders should place pending order along with a tight stop loss below the support.
2nd option (preferred one) : trader may wait for a breakout of the 4.013 resistance followed by a pullback to take position. In that case, an alert should be set for the crossing up of the price action.
My Trading Principles[reminder]:
- Risk/Reward ratio: since it is difficult to predict every market movement, it is suggested for traders to only look for trades with a R/R ratio of at least 1:3.
- Stop loss: in addition of the initial stop loss, if the price actually goes as predicted, traders should keep a trailing stop to keep some profit.
- Position Sizing: it is suggested for traders to stick to their position sizing strategy. As a rule of thumb, most retail investors risk no more than 2% of their investment capital on any one trade.
"Remember, plan the trade, trade the plan. Build that discipline."
I will keep updating this trade according to the future price action.
Please support this idea with your likes, thanks.
Best regards,
You can also follow me on :
=> Telegram : t.me/joinchat/Ep5oUhfHgdk3CI-jr-YLUQ
=> Twitter : twitter.com/JordanBadiabo
=> Instagram : instagram.com/jordan_badiabo
=> LinkedIn : linkedin.com/in/jordanbadiabo
Trade active
The pending order around 3.82 has been touched! The price already started to make a nice rebound from the entry price. I will soon post a new idea on risk management for this trade.
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