Tron/USD pair TRXUSD is primed for an advancement in the next leg of its movement.
It has had a major move downwards where it bounced if it's 50 DMA. Since then then, it has moved upwards and it now trading in a symmetrical triangle. This shows buyers and sellers taking profit and entering positions. Furthermore, just like a textbook symmetrical triangle, the trading volume since the triangle formation started has been decreasing. Yet another signal that a major move is imminent.
Additionally, the RSI has reached and stabilised at 45, the same level it reached before it went on a consistent move upwards in yet another indication that a move upwards is imminent.
It's likely the next move will be a breakout as the bounce upwards from the 50 DMA can be taken as the start of a upwards flag. However, cautionary note is that a symmetrical triangle by nature shows indecision in the market, and due to the major move downwards there is a change that the next imminent move is a breakdown.
However, the chart pattern sets up an opportunity for scalping for those with the risk appetite. One option would be to enter at approx 0.044 USD when the price reached the lower boundary of the symmetrical pattern to exit at the top boundary (0.046) with a stop loss at 0.043 for a risk:reward ratio 1:2.
Alternatively, a more risk:reward opportunity would be in case the price breaksdown to the 50 DMA again and to enter at 0.040 and exit at 0.043 - the lower part of the symmetrical triangle - with a stop loss at 0.039 for a ratio of 1:3.
It has had a major move downwards where it bounced if it's 50 DMA. Since then then, it has moved upwards and it now trading in a symmetrical triangle. This shows buyers and sellers taking profit and entering positions. Furthermore, just like a textbook symmetrical triangle, the trading volume since the triangle formation started has been decreasing. Yet another signal that a major move is imminent.
Additionally, the RSI has reached and stabilised at 45, the same level it reached before it went on a consistent move upwards in yet another indication that a move upwards is imminent.
It's likely the next move will be a breakout as the bounce upwards from the 50 DMA can be taken as the start of a upwards flag. However, cautionary note is that a symmetrical triangle by nature shows indecision in the market, and due to the major move downwards there is a change that the next imminent move is a breakdown.
However, the chart pattern sets up an opportunity for scalping for those with the risk appetite. One option would be to enter at approx 0.044 USD when the price reached the lower boundary of the symmetrical pattern to exit at the top boundary (0.046) with a stop loss at 0.043 for a risk:reward ratio 1:2.
Alternatively, a more risk:reward opportunity would be in case the price breaksdown to the 50 DMA again and to enter at 0.040 and exit at 0.043 - the lower part of the symmetrical triangle - with a stop loss at 0.039 for a ratio of 1:3.