Hedera 4H Bearish Dragon Pattern
Updated
Although HBAR's weekly candle closed above a trendline, lower timeframe charts indicate some caution. Failing to break out the orange-dotted trendline, its bullish momentum shows signs of waning.
Here, my automated indicator detected a bearish dragon pattern formation.
A breakdown from the red trendline will bring it to the edges of the white, blue (most likely), and green boxes.
I hope this setup is invalidated, but if we get a lower wick on the upper timeframe charts, here's a chance to buy the dip.
On the other hand, if you are very bullish on Hedera, buying on the red trendline would be an aggressive strategy. Tight SLs are recommended in that scenario.
Note
With this setup, I normally consider shorting on the breakdown from the red trendline. But because I belive Hedera is strongly bullish on the macro timeframe, I would place long orders on the box edges rather than selling from here.Trade active
Bearish dragon pattern unfolding.
Trade closed: target reached
I scattered spot-buy orders in the blue box.
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