How an expert professional trader analyzes an altcoin
How should I approach trading ORDI/USDT? To analyze this currency, I've chosen to focus on graphic and classic technical analysis. This involves identifying key points like tops and bottoms, support and resistance levels, graphic patterns, and breakout points.
From this analysis, I've identified a strong support zone between $30 to $25. Additionally, I've observed a bearish flag pattern formed since April 8, 2024, indicating institutional selling pressure. This asset tends to strongly adhere to equal tops and bottoms, leading to significant reversals.
In the short term, there's also a descending wedge pattern, although it broke downwards on April 30, causing panic in the retail market. However, there was a quick V-shaped recovery on May 1, 2024, followed by a retest and rejection within the wedge on May 3.
Currently, the price is approaching a resistance level. According to technical analysis principles, it's ideal to sell at resistance and buy at support. Therefore, now might be a good time to sell towards the support at $25.
It's important to note that the bearish trend is confirmed as long as the price remains below the control zone for the past 38 days since April 2, 2024, signaling institutional liquidity exit.
There are two ways to approach trading here: either buying and selling within the mentioned support and resistance levels, or buying at the breakout of the control point and selling when it's below.
For those willing to take higher risks, selling from the current $37 to $39 range with a stop above the control point at $42 could be an option. Keep a close eye on these price levels and trade wisely.
Disclaimer: Before proceeding, please note that the following information is based on technical analysis and should not be construed as investment advice. Always conduct your own research and, if necessary, seek advice from a financial professional.
From this analysis, I've identified a strong support zone between $30 to $25. Additionally, I've observed a bearish flag pattern formed since April 8, 2024, indicating institutional selling pressure. This asset tends to strongly adhere to equal tops and bottoms, leading to significant reversals.
In the short term, there's also a descending wedge pattern, although it broke downwards on April 30, causing panic in the retail market. However, there was a quick V-shaped recovery on May 1, 2024, followed by a retest and rejection within the wedge on May 3.
Currently, the price is approaching a resistance level. According to technical analysis principles, it's ideal to sell at resistance and buy at support. Therefore, now might be a good time to sell towards the support at $25.
It's important to note that the bearish trend is confirmed as long as the price remains below the control zone for the past 38 days since April 2, 2024, signaling institutional liquidity exit.
There are two ways to approach trading here: either buying and selling within the mentioned support and resistance levels, or buying at the breakout of the control point and selling when it's below.
For those willing to take higher risks, selling from the current $37 to $39 range with a stop above the control point at $42 could be an option. Keep a close eye on these price levels and trade wisely.
Disclaimer: Before proceeding, please note that the following information is based on technical analysis and should not be construed as investment advice. Always conduct your own research and, if necessary, seek advice from a financial professional.
Title: Unveiling the Cup and Handle Pattern: A Guide to Understanding Chart Patterns in the Financial Markets
Introduction:
Since the dawn of technical analysis, investors have sought visual patterns in price charts to forecast future movements. One of the most notable is the Cup and Handle pattern, a graphical representation that transcends market fluctuations and is based on investor psychology.
Body:
Chart patterns, including the Cup and Handle, were popularized by pioneers of technical analysis such as Charles Dow and Ralph Nelson Elliott. They observed that price movements in the market follow recurring patterns, reflecting the emotions and decisions of investors.
Over the years, these patterns have been refined and tested in different markets and conditions. While there is no guarantee of success, many traders rely on these patterns as part of their technical analysis strategy.
The Cup and Handle pattern, in particular, is recognized for its simplicity and effectiveness. It is not limited to candlestick charts and can be applied to any type of chart that represents price movements. This is because the pattern is based on investor psychology, which tends to react similarly to certain price patterns regardless of the chart format.
Consider, for example, a stock that reaches a new high and then undergoes a slight correction. This pause in the upward movement can trigger a chain reaction of additional buying as investors see an opportunity to buy at lower prices. This dynamic is what gives rise to the Cup and Handle pattern and its interpretation as a signal of continuation or reversal of the trend.
Conclusion:
Chart patterns, such as the Cup and Handle, are a powerful tool for traders as they encapsulate the collective psychology of the market in a visually recognizable form. While their effectiveness may vary, understanding these patterns and their application in the markets can provide valuable insights for making informed investment decisions. So, the next time you analyze a price chart, remember that behind the lines and formations lies a story being told by the emotions and actions of investors. HELP? @GARIENF1