The downtrend line in IOTA that started from price high of $5.80 made on Dec. 19, 2017 to a price low of $1.20 (Feb. 6 2018) is shown on the chart. Currently, price action has successfully broken the downtrend line and managed to stay above it. This argues for a bullish bias in IOTA.
Besides, I have also used a curve on the chart to show the bottom action of price in IOTA. It currently also looks like IOTA is forming an inverted, complex Head and shoulder pattern (or a complex Head and shoulder bottom).It is NOT yet a complex inverted H&S pattern yet. Price MUST close above the pink line (~$2.17) for the inverted complex H&S to be confirmed.
Possible target area for the trade is shown between $4.02 and $4.23. A quick deep in price to about the $1.85 area would be a great target to get into the trade. Price moving back below the downtrend line would make me reconsider my bullish thesis for IOTA and I would look to exiting the trade or drastically cutting the size of my position.
POI = point at which the trade is no longer valid = Close of price below the low made on Feb 6 2018 = ~$1.20
Using $1.85 as my trade entry point and $1.20 as the POI, risk - $0.65
Reward = Potential Profit = $4.02 – $1.85 = $2.17
Risk/reward ratio = ~3.4
Besides, I have also used a curve on the chart to show the bottom action of price in IOTA. It currently also looks like IOTA is forming an inverted, complex Head and shoulder pattern (or a complex Head and shoulder bottom).It is NOT yet a complex inverted H&S pattern yet. Price MUST close above the pink line (~$2.17) for the inverted complex H&S to be confirmed.
Possible target area for the trade is shown between $4.02 and $4.23. A quick deep in price to about the $1.85 area would be a great target to get into the trade. Price moving back below the downtrend line would make me reconsider my bullish thesis for IOTA and I would look to exiting the trade or drastically cutting the size of my position.
POI = point at which the trade is no longer valid = Close of price below the low made on Feb 6 2018 = ~$1.20
Using $1.85 as my trade entry point and $1.20 as the POI, risk - $0.65
Reward = Potential Profit = $4.02 – $1.85 = $2.17
Risk/reward ratio = ~3.4