This trade setup for AVAX/USDT is based on key support and resistance levels and the potential for a reclaim or bearish retest of the previous range low. I will outline both the long and short scenarios, detailing the conditions under which I will enter and exit these trades.
Current Price Action:
AVAX is currently trading around $29.
The price has been in a downtrend, as evidenced by the lower highs and lower lows on the chart.
The previous range low is a significant level that the price needs to reclaim to shift the market sentiment from bearish to bullish.
Key Levels:
Previous Range Low: Approximately $29.30.
Trade Plan:
Scenario 1: Long Position
Entry Condition: Enter a long position if AVAX reclaims the previous range low of $29.30 and closes above this level on 1h timeframe.
Entry Price: Around $29.30
Stop Loss: Below the recent swing low at $28.6.
Potential Long Target1: $30.45 (based on previous highs and resistance levels).
Potential Long Target2: 32$
Rationale: A successful reclaim of the range low indicates a potential shift in market sentiment, providing a good risk-to-reward ratio for a long position.
Scenario 2: Short Position
Entry Condition: Enter a short position if AVAX performs a bearish retest of the previous range low ($29.30) and shows signs of rejection
Entry Price: Around $29.30 - $29.
Stop Loss: Above the recent swing high at $29.75.
Take Profit:1 $28.6,
Take Profit:1 $27.1,
Rationale: A bearish retest and rejection at the range low suggest that the downtrend is likely to continue, providing a good risk-to-reward ratio for a short position.
Execution:
Monitor Price Action: Keep an eye on how the price behaves around the key level of $29.30.
Wait for Confirmation: Look for strong confirmations such as a high volume break and close above $29.30 for a long position or a bearish candlestick pattern with high volume rejection for a short position.
Current Price Action:
AVAX is currently trading around $29.
The price has been in a downtrend, as evidenced by the lower highs and lower lows on the chart.
The previous range low is a significant level that the price needs to reclaim to shift the market sentiment from bearish to bullish.
Key Levels:
Previous Range Low: Approximately $29.30.
Trade Plan:
Scenario 1: Long Position
Entry Condition: Enter a long position if AVAX reclaims the previous range low of $29.30 and closes above this level on 1h timeframe.
Entry Price: Around $29.30
Stop Loss: Below the recent swing low at $28.6.
Potential Long Target1: $30.45 (based on previous highs and resistance levels).
Potential Long Target2: 32$
Rationale: A successful reclaim of the range low indicates a potential shift in market sentiment, providing a good risk-to-reward ratio for a long position.
Scenario 2: Short Position
Entry Condition: Enter a short position if AVAX performs a bearish retest of the previous range low ($29.30) and shows signs of rejection
Entry Price: Around $29.30 - $29.
Stop Loss: Above the recent swing high at $29.75.
Take Profit:1 $28.6,
Take Profit:1 $27.1,
Rationale: A bearish retest and rejection at the range low suggest that the downtrend is likely to continue, providing a good risk-to-reward ratio for a short position.
Execution:
Monitor Price Action: Keep an eye on how the price behaves around the key level of $29.30.
Wait for Confirmation: Look for strong confirmations such as a high volume break and close above $29.30 for a long position or a bearish candlestick pattern with high volume rejection for a short position.
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.
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.