Cardano ADABTC ready for second leg up?
This is definitely not financial advice and you should do your own research. The ideas expressed in this post are the sole opinion of the BitDoctor team.
Cardano historically has really followed the bitcoin price action until recently. Of course somebody like Charles Hoskinson posting some twitter post about upcoming news has probably helped the case a bit, if volume can keep up the momentum there is a chance we're going to see another leg up from here.
I haven't done an Elliot Wave analysis on the way down to the bottom pivot but it would appear that there's decent potential in this trade and the risk vs reward is pretty high.
Things are looking toward 1300 or 1350 for this run. The counts aren't perfect but a 5-3-5 corrective wave is likely in the cards.
Please please practice risk management and know when the trade is wrong. This trade is invalidated around 1050-1080. Leave the trade in that zone. If this trade is invalidated, we're likely heading back to 980. This is why stop losses are so important in this volatile market.
Cardano historically has really followed the bitcoin price action until recently. Of course somebody like Charles Hoskinson posting some twitter post about upcoming news has probably helped the case a bit, if volume can keep up the momentum there is a chance we're going to see another leg up from here.
I haven't done an Elliot Wave analysis on the way down to the bottom pivot but it would appear that there's decent potential in this trade and the risk vs reward is pretty high.
Things are looking toward 1300 or 1350 for this run. The counts aren't perfect but a 5-3-5 corrective wave is likely in the cards.
Please please practice risk management and know when the trade is wrong. This trade is invalidated around 1050-1080. Leave the trade in that zone. If this trade is invalidated, we're likely heading back to 980. This is why stop losses are so important in this volatile market.
Trade active:
Right now the trade is in profit. I would recommend setting the stop loss a little higher here, preferably in profit. Don't move it up too much since you can get wicked out pretty easy.
Side note: I'm seeing some bearish divergence on BTC so that can likely have a huge impact in this trade. That's a major factor in why I'm considering moving the stop loss to break-even or small profit since any major move in BTC can move Cardano quickly.
Side note: I'm seeing some bearish divergence on BTC so that can likely have a huge impact in this trade. That's a major factor in why I'm considering moving the stop loss to break-even or small profit since any major move in BTC can move Cardano quickly.
Trade active:
Continuing to watch this trade play out. A lot of this is heavily reliant on BTC not doing anything crazy. With any bear markets, taking a trade and anticipating a movement in the upward direction involves some risk management and strict stop losses. While we're targeting a profit point somewhat high, it would be wise to continue to move up stop losses as the price continues to rise. Give yourself some wiggle room so you don't get wicked out.
Stop loss around 1125 is probably wise at this point.
Stop loss around 1125 is probably wise at this point.
Trade closed: stop reached:
It looks like the 1125 stop was reached. There is potential that ADA could rise but with BTC doing some downward movement in recent hours, ADA followed suit and went below the trailing stop at 1125. The trade itself may still be good but I will close this and re-evaluate.
Comment:
It does appear that trailing stops aren't always your friend. If this continued downward, it would have been a savior. In this case it just cost a lot of profit.
Comment:
Admittedly I am pretty upset with myself that I didn't trust my analysis and let myself get stopped out. It was in profit, sure, but a lot of lost opportunity here.
Target hit.
Target hit.