Hey Folks. I got my eye on a possible trade setup for ApeCoin (APE).
As of right now, I am looking to get into a Short Position in ApeCoin, but the Short Trade setup is only worth my time if my target area is hit (Rejected off Trendline), with a Bearish Divergence on the RSI, giving me Two Confirmations, with a possible 3rd Confirmation with Stoch RSI Topping Out. If Confirmations are met, it will decrease my Risk and increase my Reward.
Chart 1 - Plan
On the chart above, I have my entry at $4.42 (at or near) to enter Short Trade. My 1st Take Profit is inside the Golden Pocket at or near $3.83, and the 2nd Take Profit is set at the 0.382 (Fib Retracement Tool) $3.34 (at or near). My Target Area is the Trendline at or near $2.48. I plan to close 90% of trade, and let the rest ride, but will set my a Stop Loss at the 0.382 (Fib Retracement Tool).
I will only enter Short Trade if 2 Confirmations are met.
2 Confirmations
1. Rejection off Trendline
2. Hidden Bearish Divergence
3rd Possible Confirmation -
Would Like to see the Stoch RSI swerve down a little before swerving back up and topping out.
Note, the Stoch RSI it is note a necessity for me to get into trade as long other 2 Confirmations are hit, but if Stoch RSI plays out like I suspect, it will be another Confirmation to increase my odds of a successful trade.
Depending on Price Action, I may close entire trade at anytime, or let the rest ride for long as possible, while moving my Stop Loss as Price Action falls, insuring profits. But Markets can change at anytime, and depending on price action, I may revaluate my position. Nothing is set in stone. For no trader can predict the markets. The best that traders can do is to determine the probabilities in which direction it will go.
Note: This trade is a Swing Trade. Anywhere from a couple days to a week or two, possibly more.
It is important to note, the trade may not materialize. This is only a Plan of Action if Price Action hits key Targets. Not Financial Advice. And I do not use leverage.
Please Take Note: Price Action on Day Charts can take some time to play out. Anywhere from a day or two or a couple of weeks.
