Solana, 18 Nov. Three Entry Ideas that Keep Us Safe
Solana declines further as the market corrects. My assumption is still that SOL is in a wave (iv), so today I look at entries that keep us safe in case the count is wrong.
Geometry:
Price is currently at the bottom of the pitchfork (blue dashed line). This has been a support in the past. The next support is the 1.5 extension (red dotted diagonal).
The red area is the current channel of the correction, which we can divide in two halfs.
Elliott:
We are able to count an unfolding wave c (in green) which is part of wave (iv) in blue. The blue box marks the .386-.236 Fib zone in which a wave 4 usually reverses. When we use the Fib extension tool, we get targets for green wave c that are within the blue box, and 1.618 slightly below.
Gann:
Support: 186.5
Resistance: 261
How I trade it:
The idea is to add long exposure as long as price remains inside the pitchfork (it is important that the pitchfork does not become resistance). A breakout of the red channel would trigger a classic buy signal.
The exception is the 187 entry. This one is located at the 1.618 fib extension, where we get confluence with the Gann level, the 1.5 pitchfork extension, and the lower boundary of the red channel. We can apply a tight SL to this entry because the risk/reward ratio is excellent.
The intention is to trade wave (v) if the count is correct.
Geometry:
Price is currently at the bottom of the pitchfork (blue dashed line). This has been a support in the past. The next support is the 1.5 extension (red dotted diagonal).
The red area is the current channel of the correction, which we can divide in two halfs.
Elliott:
We are able to count an unfolding wave c (in green) which is part of wave (iv) in blue. The blue box marks the .386-.236 Fib zone in which a wave 4 usually reverses. When we use the Fib extension tool, we get targets for green wave c that are within the blue box, and 1.618 slightly below.
Gann:
Support: 186.5
Resistance: 261
How I trade it:
The idea is to add long exposure as long as price remains inside the pitchfork (it is important that the pitchfork does not become resistance). A breakout of the red channel would trigger a classic buy signal.
The exception is the 187 entry. This one is located at the 1.618 fib extension, where we get confluence with the Gann level, the 1.5 pitchfork extension, and the lower boundary of the red channel. We can apply a tight SL to this entry because the risk/reward ratio is excellent.
The intention is to trade wave (v) if the count is correct.