LINKUSD - conquering FOMO by initiating short to 6.15
This is my trade plan for
LINKUSD
. Multi high top formation is evident, bearish bias is further supported by drop in volume. Recent retest of 8.25 resistance (2 nd rejection) provides an opportunity for an early entry into a short position. Stop loss is placed slightly above one of the previous lower highs at 8.62. I suggest to further add into the position if the pattern is validated by a bearish candle with a higher volume. 7.32- 6.15 rage seems as a plausible profit taking area. at that point I would look for trend reversal signals, to post a long position aiming for new highs (around 13.5 - suggested by a Fibonacci extension, drawn from all time low to all time high). There are fundamental reasons to remain bullish on LINK in the long term (unique need filled by decentralized oracles, gaining momentum in public awareness).
LINKUSD
. Multi high top formation is evident, bearish bias is further supported by drop in volume. Recent retest of 8.25 resistance (2 nd rejection) provides an opportunity for an early entry into a short position. Stop loss is placed slightly above one of the previous lower highs at 8.62. I suggest to further add into the position if the pattern is validated by a bearish candle with a higher volume. 7.32- 6.15 rage seems as a plausible profit taking area. at that point I would look for trend reversal signals, to post a long position aiming for new highs (around 13.5 - suggested by a Fibonacci extension, drawn from all time low to all time high). There are fundamental reasons to remain bullish on LINK in the long term (unique need filled by decentralized oracles, gaining momentum in public awareness).
Trade closed: target reached:
Looks like the first profit target of 7.32 was reached. While the price went down on a good bearish volume, I would pause before initiating another short to 6.15. Bearish momentum was not strong enough to clear the 7.30 level - the 0.786 Fibonacci retracement line. This is an important level - lets see if the price moves below it. (a close of a 4 hr candle below it - and we ll prepare to restart the short). - In this case I would definently put a stop loss - around 7.45 - as the pull back above the 0.786 would indicate further consolidation and would invalidate bearish move short term.
Trade active:
The continuation short initiated as 7.16, as the price action steadily moved below the 0.786 Fibonacci retracement line on 6 to 2 hr time frames. We place stop loss above the the retracement line at 7.45, and we will target 6.22-6.15 area to take profits, although we will aslo be guided by short-frame trade reversal signals as well to take profits. MACD will do.