Bullish ADL Divergence is when the ADL is trending upwards while price is trending down. ADL trending up shows an increase in buying pressure (Accumulation). Assuming volume does precede price, a reversal in price definitely seems possible.
Anticipate for the price action to reverse into a major uptrend eventually as accumulation pressure increases.
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Placing a trade order tonight for a swing trade.
Entry looking at 6.85 where it has been trading below 7.0 recently. The entry level is also on the edge of a major volume profile high vol trading region. This level has also been well supported in the last year. Want to get in a bit early before the majority of people get in to start trading.
SL is at 5.74, below the next high vol node which I anticipate will provide support.
TP 8.22 is probably a bit ambitious and will probably take some time under the current environment where growth stocks are out of favor. TP is in a high vol node area and just below a resistance level where the price has failed to break through 3 times.
Trade active
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Order triggered @ 6.85 today as per plan. TP and SL also as per previous plan.