ALGOUSD - Trend-Following Setup!ALGO has been overall bearish for a while, trading inside our blue channel but since it is approaching a strong demand/support zone we will be looking for buy setups.
But before we buy, we want the buyers to prove that they are taking over again. (you don't want to buy a bearish market right?)
Our upper blue trendline is not valid yet, as it only connects two swings, so we will be waiting for a third swing high to form around it to consider it our trigger swing. (projection in purple)
Trigger => Waiting for that swing high to form and then buy after a momentum candle close above it (gray zone)
Meanwhile, until the buy is activated, ALGO would be overall bearish and can still dive inside our green zone or even break it downward.
For now, as per the current market condition, we are waiting for a new swing high to form around our upper blue trendline to consider it our trigger swing, and then and only then, the reversal setup would be ready and confirmed after a momentum candle-close above that last swing high.
Always follow your trading plan regarding entry, risk management, and trade management.
Good luck!
All Strategies Are Good; If Managed Properly!
~Rich
