ATOMUSDT 4H short of confirmed double top
TA explained
On the 4H TF a clear double top can been found for ATOMUSDT. Furthermore an M-formation was created and the neckline of the M was retested. This retest is in confluence with the 0.5 (not a real, but still a important) fib level of the downside impulse. Price got rejected and is now looking for more downward movement.
The indicators on the 4H.12H and daily TFs support more downward movement. 12H RSI super bearish. RSI on daily just crossed midline which is a trigger for short.
At the moment it is testing a long lasting trendline. If it is able to break it, the drop cant be stopped. If it bounces successfully it might try to retest the upper line of the ascending triangle It is currently in. In that scenario the trade will be stopped out.
Targets align with the extended fib levels of the downside move and of the corrective leg. Also i put an even lower target in the chart which you could aim for if you want to. It aligns with a previous low.
Trade setup
Best entries: 2.830 - 2.790
TP1: 2.675
TP2: 2.610
TP3: 2.480
SL: 2.886
RR: 3.37
Max leverage: 7x
—————
Do Your Own Research (of course)
Trade at own risk (of course)
Only trade what you can afford to lose (of course)
On the 4H TF a clear double top can been found for ATOMUSDT. Furthermore an M-formation was created and the neckline of the M was retested. This retest is in confluence with the 0.5 (not a real, but still a important) fib level of the downside impulse. Price got rejected and is now looking for more downward movement.
The indicators on the 4H.12H and daily TFs support more downward movement. 12H RSI super bearish. RSI on daily just crossed midline which is a trigger for short.
At the moment it is testing a long lasting trendline. If it is able to break it, the drop cant be stopped. If it bounces successfully it might try to retest the upper line of the ascending triangle It is currently in. In that scenario the trade will be stopped out.
Targets align with the extended fib levels of the downside move and of the corrective leg. Also i put an even lower target in the chart which you could aim for if you want to. It aligns with a previous low.
Trade setup
Best entries: 2.830 - 2.790
TP1: 2.675
TP2: 2.610
TP3: 2.480
SL: 2.886
RR: 3.37
Max leverage: 7x
—————
Do Your Own Research (of course)
Trade at own risk (of course)
Only trade what you can afford to lose (of course)
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.