AAOI/USD – 30-Min Long Trade Setup !📌🚀
🔹 Asset: AAOI (Applied Optoelectronics, Inc.)
🔹 Timeframe: 30-Min Chart
🔹 Setup Type: Bullish Reversal Trade
📌 Trade Plan (Long Position)
✅ Entry Zone: Above $18.12 (Breakout Confirmation)
✅ Stop-Loss (SL): Below $16.30 (Invalidation Level)
🎯 Take Profit Targets:
📌 TP1: $21.39 (First Resistance Level)
📌 TP2: $24.83 (Extended Bullish Move)
📊 Risk-Reward Ratio Calculation
📉 Risk (SL Distance): $18.12 - $16.30 = $1.82 risk per share
📈 Reward to TP1: $21.39 - $18.12 = $3.27 (1:1.8 R/R)
📈 Reward to TP2: $24.83 - $18.12 = $6.71 (1:3.7 R/R)
🔍 Technical Analysis & Strategy
📌 Falling Wedge Breakout: Price has broken out of a falling wedge, a strong bullish reversal pattern.
📌 Support Rejection: The price tested $16.30 support and showed buying pressure.
📌 Volume Confirmation Needed: Ensure high buying volume when price holds above $18.12 to confirm bullish momentum.
📌 Momentum Shift Expected: If price remains above $18.12, it could push toward $21.39, and further to $24.83.
📊 Key Support & Resistance Levels
🟢 $16.30 – Stop-Loss / Support Level
🟡 $18.12 – Breakout Level / Long Entry
🔴 $21.39 – First Resistance / TP1
🔴 $24.83 – Final Target / TP2
📉 Trade Execution & Risk Management
📊 Volume Confirmation: Ensure high buying volume above $18.12 before entering.
📉 Trailing Stop Strategy: Move SL to entry ($18.12) after TP1 ($21.39) is hit.
💰 Partial Profit Booking Strategy:
✔ Take 50% profits at $21.39, let the rest run toward $24.83.
✔ Adjust Stop-Loss to Break-even ($18.12) after TP1 is reached.
⚠️ Fake Breakout Risk
❌ If the price fails to hold above $18.12 and drops back, exit early to avoid losses.
❌ Wait for a strong bullish candle close above $18.12 before entering aggressively.
🚀 Final Thoughts
✔ Bullish Setup – Bouncing from $16.30 support suggests a potential reversal.
✔ Momentum Shift Possible – Watch for volume confirmation.
✔ Favorable Risk-Reward Ratio – 1:1.8 to TP1, 1:3.7 to TP2.
💡 Stick to the plan, manage risk, and trade smart! 🚀📈
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