Possible Trade Setup - Day Chart - Cardano (ADA)

By Blue Face | Blue Face Crypto | 25 Nov 2022


Hey Folks. I got my eye on a possible trade setup for Cardano (ADA) on the Day Chart. 

As of right now, I am looking to get a Long Position in Cardano, but the Long Trade setup is only worth my time if my target area is hit, with a Bullish Divergence, for the Risk/Reward must be in my favour for me to enter. I look for at least 2 Confirmations to increase my odds. So, the possible trade setup on the Day Chart below is for a possible Long Entry on or near the Trendline to get a good Entry Price, increasing my Risk/Reward in my favour, only if a Bullish Divergence is printing.

e5d05241c58f16c75d352539b188c12964fec0a64732b2db39d55c0164403d5b.png

Before entering the possible Long Trade Setup, I would like to see some Conformations. The more conformations received, the higher the probabilities are in my favour. I got my eye on 2 Conformations, is the Price Action hitting the Trendline and Bullish Divergence on the RSI

Note: If Price Action Fails to generate at least 2 Confirmations, I will not enter Trade.

2 Conformations

Confirmation 1 - Bounce off Trendline

7c1873789553184b6292f134813f04e3d50d8d3fd7f6bd331affe3599aaab409.png

Confirmation 2 - Bullish Divergence

726981e6058a224fe8479b8779400dbdd72672abe2c94b134d56eaec4dfbc400.png

Also I got my eye on the Stoch RSI.

92774393e011660f17b42942efdd2443ac3ca11544cc0c6e3fa66047af6eb1a8.png

I would like to see the Stoch RSI swerve down just a little before continue to go up. But its note a necessity to get into trade
as long other confirmations are confirmed. 

 

I will take Profits at Resistance (Trendline), and depending on price action I may close entire trade, 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. Not Financial Advice

Please Take Note: Price Action on Day Charts can take some time to play out. Anywhere from a couple days to couple of weeks.

How do you rate this article?

20


Blue Face
Blue Face

Fan of Art, Life, and Crypto, even if it makes me blue in the face


Blue Face Crypto
Blue Face Crypto

Crypto Fan, even if it makes me blue in the face.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.