MATIC - Don’t Buy the Breakout, Buy the Retest
TLDR:
• MATIC is close to breaking out of the Range High.
• To trade long I need to see the following:
o Break out of the range.
o Move up to deplete the supply zone.
o Range high flipped to support.
• Only after these two conditions are met will it be a high-confidence long trade.
Background:
• MATIC is in a similar situation to many other altcoins. The MATIC situation is as follows:
1. Sharp drop.
2. Selling Climax.
3. Automatic Rally.
4. consolidation in a Range.
• Assuming that the correction is over, this could be an amazing opportunity to buy low and sell high. However, there’s a worm inside the apple that we need to avoid.
• MATIC has a supply zone just above the range high. Meaning that a break above the range high will, most likely, fail at the first attempt. Here are a few examples:
• DYDX Weekly TF:
• XRP Daily TF:
• BNB Daily TF:
So, what do we do?
• Simple, Patience. Don’t buy the breakout, buy the retest. If you miss out, there are other trades. Nonetheless, it is most probable that all you will miss is the stress and heartache of being in the red.
Trading Plan:
• This is a generic trading plan. It is applicable not just to MATIC but to any other asset that is consolidating in a range. I intend to use this tactic for ADA, FTM and BNB as well as MATIC.
1. Break above the range High
2. wait for the supply zone depletion
3. Wait for range high retest as support.
4. Wait for green dots on the TTM Squeeze indicator.
5. Go long.
Trade Idea:
• Entry: 0.715
• SL: Below last Low before the breakout app. 0.65
• Target: 1.568
• R: R: 1:12
• TP: 0.95, 1.18, 1.568
NFA
What do you think? Please share in the comments.
Best wishes.
• MATIC is close to breaking out of the Range High.
• To trade long I need to see the following:
o Break out of the range.
o Move up to deplete the supply zone.
o Range high flipped to support.
• Only after these two conditions are met will it be a high-confidence long trade.
Background:
• MATIC is in a similar situation to many other altcoins. The MATIC situation is as follows:
1. Sharp drop.
2. Selling Climax.
3. Automatic Rally.
4. consolidation in a Range.
• Assuming that the correction is over, this could be an amazing opportunity to buy low and sell high. However, there’s a worm inside the apple that we need to avoid.
• MATIC has a supply zone just above the range high. Meaning that a break above the range high will, most likely, fail at the first attempt. Here are a few examples:
• DYDX Weekly TF:
• XRP Daily TF:
• BNB Daily TF:
So, what do we do?
• Simple, Patience. Don’t buy the breakout, buy the retest. If you miss out, there are other trades. Nonetheless, it is most probable that all you will miss is the stress and heartache of being in the red.
Trading Plan:
• This is a generic trading plan. It is applicable not just to MATIC but to any other asset that is consolidating in a range. I intend to use this tactic for ADA, FTM and BNB as well as MATIC.
1. Break above the range High
2. wait for the supply zone depletion
3. Wait for range high retest as support.
4. Wait for green dots on the TTM Squeeze indicator.
5. Go long.
Trade Idea:
• Entry: 0.715
• SL: Below last Low before the breakout app. 0.65
• Target: 1.568
• R: R: 1:12
• TP: 0.95, 1.18, 1.568
NFA
What do you think? Please share in the comments.
Best wishes.
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