DYDX/USD, Triple bottom formed? Buy Sign for me!
Greetings, and welcome back to my analysis! I've been keeping a close eye on DYDX/USD since November of last year, and my analysis suggests that it has already formed a bottom. Currently, the price is at a key level of resistance on the weekly chart, specifically a supply level. As traders and investors, it's important for us to pay attention to these levels as they can indicate potential changes in market sentiment.
A breakout from this level, where the price moves above the supply level, could signal a bullish trend and may present an opportunity to enter a long position. This is because a breakout from a supply level indicates that the bears have lost control and the bulls are starting to take control.
Additionally, if the price does break out from this level, we should also be aware of retest and consolidation. Retest refers to the price coming back to the breakout level, to confirm that the level is indeed broken, and consolidation refers to the price moving in a tight range after the breakout. Both of these factors can indicate that the market is gathering momentum before continuing in the direction of the breakout.
However, it's also important to note that we should also have an exit plan in case of invalidation, which means that the price falls below the supply level. This would indicate that the breakout was false and the bears are still in control of the market. This would lead us to close our long positions and wait for a new setup to form.
Overall, DYDX/USD is currently at a key level of resistance, and a breakout from this level, along with confirmation through retest and consolidation, could present a bullish opportunity. However, we must always be prepared for the possibility of invalidation and have a clear exit plan in place.
A breakout from this level, where the price moves above the supply level, could signal a bullish trend and may present an opportunity to enter a long position. This is because a breakout from a supply level indicates that the bears have lost control and the bulls are starting to take control.
Additionally, if the price does break out from this level, we should also be aware of retest and consolidation. Retest refers to the price coming back to the breakout level, to confirm that the level is indeed broken, and consolidation refers to the price moving in a tight range after the breakout. Both of these factors can indicate that the market is gathering momentum before continuing in the direction of the breakout.
However, it's also important to note that we should also have an exit plan in case of invalidation, which means that the price falls below the supply level. This would indicate that the breakout was false and the bears are still in control of the market. This would lead us to close our long positions and wait for a new setup to form.
Overall, DYDX/USD is currently at a key level of resistance, and a breakout from this level, along with confirmation through retest and consolidation, could present a bullish opportunity. However, we must always be prepared for the possibility of invalidation and have a clear exit plan in place.
Comment:
Congrats for anyone who take the trade! easy 58% gains!
Comment:
breakout done, let see the reaction from purple box, expecting bounce