ICP → Internet Computer Running Out of Gas with Ascending Wedge?ICP gave us another push up after we broke the Support Zone and established support. Now we see ICP coming down to test the Push #2 high of $11.80. The price is consolidating to the upside in an ascending wedge pattern, should we short?
How do we trade this? 🤔
It is not time to short because we're still in the ascending wedge pattern and have not failed to make new highs and new lows. The earliest we should be entering a trade is when the price attempts to make a new high, fails and has broken out of the wedge.
We're looking for a sell signal (bear bar closing on or near its low with a wick top) followed by a confirmation bar (strong bear bar closing on or near its low). The likely price area to enter the short will be around $13.00, but we're still a ways from the target, so we'll have to watch the candles print to size up our entry. A higher probability of profit trade is a 1:1 short scalp to the Support Zone, making the assumption that this will play out as a pullback rather than a bear run.
We need to keep an eye on Bitcoin as it nears $45,000 again. I suspect it will fail to break the neckline but until we confirm that, we can trade as if it won't.
💡 Trade Idea 💡
Short Entry: $13.00
🟥 Stop Loss: $17.00
✅ Take Profit: $8.98
⚖️ Risk/Reward Ratio: 1:1
🔑 Key Takeaways 🔑
1. Three Pushes Up from Ascending Triangle Breakout
2. Ascending Wedge Forming
3. Look for Double Top Wedge Breakout to Short
4. Watch Bitcoins Possible Reversal from $45,800, Impact on Alt Coin Market.
5. High RSI at 63.00 below Moving Average, Supports Pullback to Support Zone.
💰 Trading Tip 💰
Ascending Wedges signal an increased probability of a bear breakout. Combined with three pushes up in a bull trend and strong sell bars (candles with large wicks on their tops), creates conditions where a counter-trend trade is reasonable.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
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