ADX Idea - Up or down? Look at the channel

In the 4 hour chart for ADX , we can see how it has retraced nicely from previous highs. Now it appears to be ranging in a sideways trading channel.

What we really need to watch for here is signs of a bottom. If this is the bottom for ADX , we can enter and bag some nice profits! If not, we should practice good risk management, and find the proper entry.

If you zoom in, you will see that price just spiked above the upper trend line of the channel, all the way to the 0.236 fib at 10618 sats . This is our first profit target, and offers a neat ~10% give or take.

ADX is a lower cap coin (55mm), and I've noticed that fib levels generally create a general support / resistance zone , rather than a specific level. Keep this in mind as we set profit levels and stops.

Our next target should be in the 0.382 fib (13356 sats ) resistance zone . We can observe future price action to determine where in this zone our target should be. Selling in the beginning of the zone is the safe way to trade this. I think our zone anywhere from 12k sats to 14.5k sats . Once price reaches this level, a more specific resistance line should become clearer.

Should ADX fail to break upwards resistance and instead retests support, keep an eye on the strong support in dark blue / black (8147 -7855 sats )
In this scenario, sell the break, buy the bounce.
When trading, I wait for a strong break through support, not just a slight violation. Especially with these lower cap coins.
I also look for reversal indicators when buying a bounce. Bullish engulfing candles have worked well.

You can set a Stop-Loss at 7.5k sats , but even better is to set alarms on Tradingview just above critical support levels if you are able to monitor price action in real time.
But either way always practice risk management!

Hopefully we can bag some cheap ADX , and make a neat profit! I am expecting to get at least 20-30% from this trade mid-term.

As always, happy trading! :)
Comment: If price bounces off of the purple trend line I drew, an ascending triangle (bullish) may take shape. With this one we just need to watch the price a little longer.
Comment: Pressure is building on our overhead resistance from 9500-9650 satoshis
Comment: Wee hoo! Price bounced nicely from light blue support, then broke all 3 resistance areas before stabilizing just below our 2nd red resistance / take profit point.

Excellent trade. I would take some profits as a principal, but see no reason not to HODL part of your position a bit more.
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out