Breakthrough of the horizontal accumulation channel with a step of 23% that existed for more than 6 months. Now a pullback and possibly a formation similar to a symmetrical triangle is forming above the channel. The target for the triangle is 18%.
The zone for observation and strong resistance is indicated in purple. Also, this zone is equivalent to the width of the former accumulation channel. As a rule, if there is no strong trend up / down movement, prices start lateral movement to the width of the previous channel (rectangle).
It is worth noting that with a high degree of probability we will test new support (the previous channel resistance). If support is confirmed, then for a certain time the price will move sideways with a 23% step between the border of the previous channel and the zone indicated by purple.
If the price overcomes this zone (in purple) and fixes above it, this will mean a full trend reversal.
ENTRANCE 1) On a breakthrough or rollback after a breakthrough of a local downtrend line of the formation. 2) When confirming a new support (previous channel resistance).
An unlikely scenario. When testing a new support (previous channel resistance), the price falls back to the previous channel. Then trade in the channel, from the support zone to the resistance zone. A safe purchase in such cases will be: 1) from the bottom of the channel. 2) above the channel resistance.
Stop loss Under key support levels during your entry into the market.
LOCAL TARGET 1) in a triangle if it is formed + 18%. 2) from the re-test of support if confirmed + 23%.
The previous trading idea for this coin but in the pair EOS/USD which gave + 80% from the first entry point. Which is still relevant for work. EOS local downlink. Potential from + 50% Dec 6, 2019
We reached the entry zone a week later.
The first profit is slightly more than + 80%.
Comment
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The triangle has broken up, the profit is now + 9%
Trade closed: target reached
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+13%
Trade closed: target reached
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Target taken + 19% Fixing above this zone will mean continuation of the trend