Trade setup for AVAX/USDTThis 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.
