If we look at the daily chart, we can see a retracement after 2 bullish candles. It's a normal situation and for better understanding the nature of this retracement we should look at the lower time frames. On the 4H chart we can see that price reached the area near the downtrend line. It's the resistance line and the possible reversal zone. The market bounced from this line and RSI confirmed price reversal. Price dropped below 300.00 level it can drop even lower. We have to find the possible reversal zone for up movement. If the market moves lower the support level 260.00 will be the 1st reversal zone. If we see a bullish candle at this level and RSI confirms price reversal, we'll have a buy signal for opening long trades. Buy-stop orders should be placed above the high of the bullish candle or above 300.00 level. If price reverses from this level, the new swing low will be higher than previous. It will be an additional confirmation for following up movement on the 4H and the daily charts. Profit target for long trades will be at 380.00 level.
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Comment
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The main crypto markets are going to reverse and drop lower. It's better to wait for new buy signals from lower levels.
Great work Sir, do you have a book or an Academy where i can learn form your knowledge???? am a newbie in the Crypto trading...
DLavrov
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@Tron46, you can search for babypips school and chart school. I work under my stuff, services and tools for trading. Please, follow my page here in order to get news on time.
CaseyTroy
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Some say due to history with Memorial day 4th July we should expect a decline. What is your thoughts Dlavrov?
DLavrov
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@CaseyTroy, I don't care about fundamental news. I trade based on signals from charts.