This potential reversal zone should be used as stop loss in case of complete candle stick closes below this zone.
Lets have a look at the dimensions of iExec RLC price action's move:
After initial leg (X to A) the A to B leg is retraced between 0.618 to 0.786 Fibonacci (here I have ignored very minor difference) and then B to C leg is projected between 0.382 to 0.886 of A to B leg's and final (C to D) leg is retraced between 0.618 to 0.786 Fibonacci as perfectly required for and now the price action is moving in potential reversal zone of this , now we can expect at any time which will lead the priceline between 0.382 to 0.786 of A to D leg, but after this if the candles sticks will be closed above the 0.786 Fibonacci levels then it can also lead to the long term move.
As per Fibonacci sequence method we can set our targets as below for mid term trade:
Buy between: $0.3901 to $0.3805
Sell between: $0.3977 to $0.4160
So this very short term 8hr time period chart is giving very good long opportunity
Atif Akbar (moon333)
The moves analysis involves hours of hard work and determination however the success of trading in fiat and cryptocurrencies is around 80% therefore it is always important that you follow any stop loss strategy while trading I have also shared a stop loss idea in this article, the information in this article is for educational purpose only this is not an investment advice, I have tried my best to catch the moves as per predefined classical if you find any flaw or you have any suggestion feel free to share with me in comments section.