The downtrend line in IOTA that started from price high of $5.80 made on Dec. 19, 2017 to a price low of $1.20 (Feb. 6 2018) is shown on the chart. Currently, price action has successfully broken the downtrend line and managed to stay above it. This argues for a bullish bias in IOTA.
Besides, I have also used a curve on the chart to show the bottom action of price in IOTA. It currently also looks like IOTA is forming an inverted, complex Head and shoulder pattern (or a complex Head and shoulder bottom).It is NOT yet a complex inverted H&S pattern yet. Price MUST close above the pink line (~$2.17) for the inverted complex H&S to be confirmed.
Possible target area for the trade is shown between $4.02 and $4.23. A quick deep in price to about the $1.85 area would be a great target to get into the trade. Price moving back below the downtrend line would make me reconsider my bullish thesis for IOTA and I would look to exiting the trade or drastically cutting the size of my position.
POI = point at which the trade is no longer valid = Close of price below the low made on Feb 6 2018 = ~$1.20
Using $1.85 as my trade entry point and $1.20 as the POI, risk - $0.65
Reward = Potential Profit = $4.02 – $1.85 = $2.17
Risk/reward ratio = ~3.4
Besides, I have also used a curve on the chart to show the bottom action of price in IOTA. It currently also looks like IOTA is forming an inverted, complex Head and shoulder pattern (or a complex Head and shoulder bottom).It is NOT yet a complex inverted H&S pattern yet. Price MUST close above the pink line (~$2.17) for the inverted complex H&S to be confirmed.
Possible target area for the trade is shown between $4.02 and $4.23. A quick deep in price to about the $1.85 area would be a great target to get into the trade. Price moving back below the downtrend line would make me reconsider my bullish thesis for IOTA and I would look to exiting the trade or drastically cutting the size of my position.
POI = point at which the trade is no longer valid = Close of price below the low made on Feb 6 2018 = ~$1.20
Using $1.85 as my trade entry point and $1.20 as the POI, risk - $0.65
Reward = Potential Profit = $4.02 – $1.85 = $2.17
Risk/reward ratio = ~3.4
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.