Technical Analysis of Harmony (ONE/USDT) BY BLAŽ FABJAN
Technical Analysis of Harmony (ONE/USDT) BY BLAŽ FABJAN
Chart Pattern:
Falling Wedge Pattern: The chart shows a classic falling wedge pattern, which is a bullish reversal pattern typically indicating the end of a downtrend and the potential beginning of an upward move. This pattern is characterized by a contracting range between support and resistance lines, with the price eventually breaking out above the resistance line.
Current Price Action:
Entry Point & Stop Loss: The chart suggests an entry point around the current price level with a stop loss slightly below the recent low. This aligns with a strategy to enter a trade after a breakout from the falling wedge pattern.
Volume Analysis: The volume appears to be decreasing during the formation of the wedge, which is typical in such patterns. A surge in volume upon the breakout would confirm the bullish sentiment.
Indicators:
VMC Cipher B Divergences: The indicator below the chart suggests a positive divergence, meaning the momentum could be shifting from bearish to bullish, further supporting the potential upward movement.
RSI (Relative Strength Index): The RSI is hovering around the 50 mark, indicating a neutral zone. The RSI is likely to push higher if the price continues upward, confirming bullish momentum.
Stochastic RSI: The Stochastic RSI appears to be in the oversold region and is crossing upward, which typically signals a potential entry for a long position.
Trading Plan:
1. Intraday Trading:
Entry: Enter a long position at the current price level around $0.01130 after confirmation of the breakout.
Target: Look for a quick target around $0.01250 to $0.01300, which aligns with previous resistance levels.
Stop Loss: Place a stop loss slightly below the entry, around $0.01050, to protect against downside risk.
Exit Strategy: Monitor the trade closely. If the price struggles to break above $0.01250, consider closing the position to secure profits.
2. Scalping:
Entry: Enter long on minor dips around the support line near $0.01120 to $0.01100.
Target: Set tight profit targets at $0.01160 and $0.01190.
Stop Loss: Use a very tight stop loss, around $0.01100, to limit potential losses.
Exit Strategy: Quick exits are essential in scalping. If momentum slows or reverses, exit immediately to secure gains.
3. Swing Trading:
Entry: Enter a long position around the current level, confirming the wedge breakout.
Target: Target a swing move towards $0.01400 to $0.01500, where the next major resistance is expected.
Stop Loss: Place a stop loss below the recent low, around $0.01000, to account for potential volatility.
Exit Strategy: Hold the position as long as the price continues to trend upwards. If there is a significant rejection at the target levels, consider taking profits.
Conclusion and Advice for Long Position:
Bullish Bias: The chart indicates a bullish bias with a strong potential for upward movement, especially after the breakout from the falling wedge pattern. The RSI and Stochastic RSI also support this outlook.
Advice: For a long position, consider entering now with a target towards $0.01400 or higher. However, it's crucial to maintain a disciplined approach with proper stop-loss settings to protect against potential downside risks.
Risk Management: Ensure proper risk management by not over-leveraging and sticking to the stop-loss levels. The market can be volatile, so staying cautious while capitalizing on the potential uptrend is key.
Chart Pattern:
Falling Wedge Pattern: The chart shows a classic falling wedge pattern, which is a bullish reversal pattern typically indicating the end of a downtrend and the potential beginning of an upward move. This pattern is characterized by a contracting range between support and resistance lines, with the price eventually breaking out above the resistance line.
Current Price Action:
Entry Point & Stop Loss: The chart suggests an entry point around the current price level with a stop loss slightly below the recent low. This aligns with a strategy to enter a trade after a breakout from the falling wedge pattern.
Volume Analysis: The volume appears to be decreasing during the formation of the wedge, which is typical in such patterns. A surge in volume upon the breakout would confirm the bullish sentiment.
Indicators:
VMC Cipher B Divergences: The indicator below the chart suggests a positive divergence, meaning the momentum could be shifting from bearish to bullish, further supporting the potential upward movement.
RSI (Relative Strength Index): The RSI is hovering around the 50 mark, indicating a neutral zone. The RSI is likely to push higher if the price continues upward, confirming bullish momentum.
Stochastic RSI: The Stochastic RSI appears to be in the oversold region and is crossing upward, which typically signals a potential entry for a long position.
Trading Plan:
1. Intraday Trading:
Entry: Enter a long position at the current price level around $0.01130 after confirmation of the breakout.
Target: Look for a quick target around $0.01250 to $0.01300, which aligns with previous resistance levels.
Stop Loss: Place a stop loss slightly below the entry, around $0.01050, to protect against downside risk.
Exit Strategy: Monitor the trade closely. If the price struggles to break above $0.01250, consider closing the position to secure profits.
2. Scalping:
Entry: Enter long on minor dips around the support line near $0.01120 to $0.01100.
Target: Set tight profit targets at $0.01160 and $0.01190.
Stop Loss: Use a very tight stop loss, around $0.01100, to limit potential losses.
Exit Strategy: Quick exits are essential in scalping. If momentum slows or reverses, exit immediately to secure gains.
3. Swing Trading:
Entry: Enter a long position around the current level, confirming the wedge breakout.
Target: Target a swing move towards $0.01400 to $0.01500, where the next major resistance is expected.
Stop Loss: Place a stop loss below the recent low, around $0.01000, to account for potential volatility.
Exit Strategy: Hold the position as long as the price continues to trend upwards. If there is a significant rejection at the target levels, consider taking profits.
Conclusion and Advice for Long Position:
Bullish Bias: The chart indicates a bullish bias with a strong potential for upward movement, especially after the breakout from the falling wedge pattern. The RSI and Stochastic RSI also support this outlook.
Advice: For a long position, consider entering now with a target towards $0.01400 or higher. However, it's crucial to maintain a disciplined approach with proper stop-loss settings to protect against potential downside risks.
Risk Management: Ensure proper risk management by not over-leveraging and sticking to the stop-loss levels. The market can be volatile, so staying cautious while capitalizing on the potential uptrend is key.
Penafian
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