Overview:
This idea focuses on a breakout trade for Solana (SOLUSD), leveraging recent price action and volume signals at a key demand zone. The setup is designed for a high risk-to-reward ratio based on technical structure and confirmation tools.
Trade Setup & Logic:
• Entry: Price retraced to retest the 225–230 support zone, which previously acted as resistance and now converts to demand. Entry is triggered by a strong bullish candle closing above 231.5 with an uptick in volume, confirming renewed buyer interest.
• Stop Loss: Placed below 225, the lower bound of the highlighted demand area, to minimize risk if support fails immediately.
• Targets:
Target 1: 241 (first major supply zone and prior swing high).
Target 2: 253.70(multi-week trend resistance, aligns with fib extension and liquidity clusters).[tradingview]
• Risk-Reward: A minimum R:R of 1:2 is targeted. Stop loss is tightly managed once price moves in favor, with trailing stop as price approaches Target 1.
Technical Factors:
• Support/Resistance: The purple highlighted zone shows a confluence of prior reversal points and volume spikes, indicating strong institutional activity.
• Structure Confirmation: Entry is only valid upon a clear bullish reversal signal above the support zone and confirmation of above-average volume.
• Market Context: Recent downtrend is breaking, with higher lows and higher highs. Supply absorption observed at the retest supports the bullish thesis.
Trading Plan:
• Wait for price to close above 231.5 with volume confirmation before entering.
• Adjust stop loss to breakeven after Target 1.
• Take partial profits at Target 1, let remainder ride up to Target 2.
Final Notes:
Discipline and patience are essential—trade only on confirmation to avoid false breakouts. Self-research is recommended, and risk should always be managed per personal capital allocation protocols
Disclaimer: This is a technical analysis idea, not financial advice. Please perform your own due diligence before trading.
This idea focuses on a breakout trade for Solana (SOLUSD), leveraging recent price action and volume signals at a key demand zone. The setup is designed for a high risk-to-reward ratio based on technical structure and confirmation tools.
Trade Setup & Logic:
• Entry: Price retraced to retest the 225–230 support zone, which previously acted as resistance and now converts to demand. Entry is triggered by a strong bullish candle closing above 231.5 with an uptick in volume, confirming renewed buyer interest.
• Stop Loss: Placed below 225, the lower bound of the highlighted demand area, to minimize risk if support fails immediately.
• Targets:
Target 1: 241 (first major supply zone and prior swing high).
Target 2: 253.70(multi-week trend resistance, aligns with fib extension and liquidity clusters).[tradingview]
• Risk-Reward: A minimum R:R of 1:2 is targeted. Stop loss is tightly managed once price moves in favor, with trailing stop as price approaches Target 1.
Technical Factors:
• Support/Resistance: The purple highlighted zone shows a confluence of prior reversal points and volume spikes, indicating strong institutional activity.
• Structure Confirmation: Entry is only valid upon a clear bullish reversal signal above the support zone and confirmation of above-average volume.
• Market Context: Recent downtrend is breaking, with higher lows and higher highs. Supply absorption observed at the retest supports the bullish thesis.
Trading Plan:
• Wait for price to close above 231.5 with volume confirmation before entering.
• Adjust stop loss to breakeven after Target 1.
• Take partial profits at Target 1, let remainder ride up to Target 2.
Final Notes:
Discipline and patience are essential—trade only on confirmation to avoid false breakouts. Self-research is recommended, and risk should always be managed per personal capital allocation protocols
Disclaimer: This is a technical analysis idea, not financial advice. Please perform your own due diligence before trading.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.