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.
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.
Confirmation 1 - Bounce off Trendline
Confirmation 2 - Bullish Divergence
Also I got my eye on the Stoch RSI.
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.