AVAX - interesting situationReally interesting scenario where hourly timeframe has complete opposite trend of daily
If you look at hourly chart,
Clear visible downtrend channel
Price is just below upper trendline of downtrend channel
Multiple bearish patterns suggesting downward price movement
If you look at daily chart,
Clear visible uptrend channel
Price just above lower trendline of uptrend channel
Multiple bullish patterns suggesting upward price movement.
How to play
Go short based on lower timeframe.
Wait for price to hit 79.80 which is target level based on multiple patterns and support line. Daily timeframe stoploss is around 78. Hence, this can be perfect reversal zone. Go long based on HTF once you take profit.
Stop loss around 95.5 - If you hit stoploss shift to long trade based on HTF.
Note that higher time frame position means wider stoploss - may need to adjust the risk accordingly.
Scenarios
Best case : Short position hits take profit level at 79.8 and price reverse to resume daily uptrend.
Worst case : Hit short position stop 95.5 and then go on to hit long position stop at 78.8
Lets see how this plays. I am going with a small risk.
