THEATA : USD
Potential wave 5. The fib relationships look good but the time its taken for wave 4 to complete when compared to wave 2 isn't great. EMAs are bearish. That leads me to consider two main options, 1 this is a bear market relief rally or 2 its still a bull market and wave 5 has just begun. The bull flag is enticing and the risk reward on this trade is very good. There's a potential for a 10x with very little downside is stops are places responsibly.
Key Points:
Wave 2: Hit high probability fib target of 0.707
Wave 3: Front run high probability fib target of 1.618
wave 4: Overshot high probability target of 0.382
Bull flag: Break and test from above to continue macro trend
Daily EMAs: We are below the 144, 169, 244 EMAs & they have crossed bearish on the daily. This is not bullish. Needs to breakout and test from above.
The trade:
Entry 1: Around here, $3.42 - 1hr chart has broken out and retested 244 EMA. 169 & 244 EMA has crossed bullish.
Entry 2: Break out and retest of the 244 EMA on the 4h chart combined with bullish cross of 169 & 244 EMAs.
Entry 3: Break out and retest of bull flag: ~$4.20 - $5.20
Stop 1: Break of the 244 EMA on 1h, currently at: $3.24 (-5.6%)
Stop 2: Once 4hr EMAs have crossed bullish and price has tested from above, stops at 244 EMA on 4hr chart.
Target 1: 169 EMA on the daily currently at $5.13 but sloping down and decreasing. (+54%)
Target 2: 0.618 relief rally = $7.80 (+132%)
Target 3: Fib: length of wave 1 projected from the end of wave 4 = $37.60 (=1017%)
Target 4: Algo: 0.236 length of wave 3 projected from end of wave 3 = $47.41 (+1300%)
Notes:
Symmetry looks off.
Relationship between wave 2 & 4 doesn't have the 'right look'
Wave 4 has taken much longer that wave 2.
EMAs bearish on higher timeframes
Never Trust. Verify.
Not taking requests so please don't ask.
D.Y.O.R. Not Financial Advice Just an Observation.
Technical Analysis is not about being right, it's about increasing your odds.
Be prepared to be wrong. Risk management is key. Capital preservation above all else.
Potential wave 5. The fib relationships look good but the time its taken for wave 4 to complete when compared to wave 2 isn't great. EMAs are bearish. That leads me to consider two main options, 1 this is a bear market relief rally or 2 its still a bull market and wave 5 has just begun. The bull flag is enticing and the risk reward on this trade is very good. There's a potential for a 10x with very little downside is stops are places responsibly.
Key Points:
Wave 2: Hit high probability fib target of 0.707
Wave 3: Front run high probability fib target of 1.618
wave 4: Overshot high probability target of 0.382
Bull flag: Break and test from above to continue macro trend
Daily EMAs: We are below the 144, 169, 244 EMAs & they have crossed bearish on the daily. This is not bullish. Needs to breakout and test from above.
The trade:
Entry 1: Around here, $3.42 - 1hr chart has broken out and retested 244 EMA. 169 & 244 EMA has crossed bullish.
Entry 2: Break out and retest of the 244 EMA on the 4h chart combined with bullish cross of 169 & 244 EMAs.
Entry 3: Break out and retest of bull flag: ~$4.20 - $5.20
Stop 1: Break of the 244 EMA on 1h, currently at: $3.24 (-5.6%)
Stop 2: Once 4hr EMAs have crossed bullish and price has tested from above, stops at 244 EMA on 4hr chart.
Target 1: 169 EMA on the daily currently at $5.13 but sloping down and decreasing. (+54%)
Target 2: 0.618 relief rally = $7.80 (+132%)
Target 3: Fib: length of wave 1 projected from the end of wave 4 = $37.60 (=1017%)
Target 4: Algo: 0.236 length of wave 3 projected from end of wave 3 = $47.41 (+1300%)
Notes:
Symmetry looks off.
Relationship between wave 2 & 4 doesn't have the 'right look'
Wave 4 has taken much longer that wave 2.
EMAs bearish on higher timeframes
Never Trust. Verify.
Not taking requests so please don't ask.
D.Y.O.R. Not Financial Advice Just an Observation.
Technical Analysis is not about being right, it's about increasing your odds.
Be prepared to be wrong. Risk management is key. Capital preservation above all else.