Hello Traders! CTDave here again with another daily price analysis chart.
Today I will analyze Solana (SOL). SOL is currently ranging inside a channel. Right now, it hit the top resistance and it's headed down. Here is why I think it's going down:
> It hit the top of the channel
> The RSI shows that Solana is almost overbought
> There was a lot of negative volume recently
> There was an engulfing candlestick pattern on the 4-hour timeframe as shown below
So what's my trading plan?
I am entering a short position here. My stop-loss is set at just above the high of the candle. The take-profit is set at the support as you can see from the chart. I could've set it even lower -- maybe at the bottom of the channel. However, I am not that person that loves to wait and watch where to exit. So it's up to you. Anyways, thanks for reading!
As always, I encourage everyone to please like, comment, and share my ideas, and follow me for more of these posts to be kept updated. Happy trading! Thank you!
Note: I am not a financial advisor, please do not trade solely based on my trading decisions. Do your own research or consult a professional financial advisor before conducting a trade.
Today I will analyze Solana (SOL). SOL is currently ranging inside a channel. Right now, it hit the top resistance and it's headed down. Here is why I think it's going down:
> It hit the top of the channel
> The RSI shows that Solana is almost overbought
> There was a lot of negative volume recently
> There was an engulfing candlestick pattern on the 4-hour timeframe as shown below
So what's my trading plan?
I am entering a short position here. My stop-loss is set at just above the high of the candle. The take-profit is set at the support as you can see from the chart. I could've set it even lower -- maybe at the bottom of the channel. However, I am not that person that loves to wait and watch where to exit. So it's up to you. Anyways, thanks for reading!
As always, I encourage everyone to please like, comment, and share my ideas, and follow me for more of these posts to be kept updated. Happy trading! Thank you!
Note: I am not a financial advisor, please do not trade solely based on my trading decisions. Do your own research or consult a professional financial advisor before conducting a trade.
Comment:
SOL went up a bit, but it didn't hit my SL yet. I added a little bit to my position as well. On the 4-hour timeframe, we can see that the RSI has already reached the overbought level:
