Ripple has its sights set on the Resistance Zone at a price range of $0.715 to $0.75! We're currently breaking out from the Bull Channel to the upside. Do we long now?
How do we trade this? 🤔 If you're going to long, Do it at the close of this 4HR candle in 30 Minutes! The best place to long would have been a couple of candles ago when the price was at $0.63 to $0.635, giving us a 1:3 Risk/Reward. A long now could still render a 1:2 Risk/Reward which is still reasonable! However, the position size needs to be smaller to accommodate the larger distance to the Stop Loss.
Zoom into the 4HR chart and look for this candle to close in about 35 Minutes. If it closes above the Bull Channel, enter a long and set your protective stop below the Daily 30EMA. Go for a 1:2 Risk/Reward Ratio which sets a Take Profit target around $0.72. Be prepared to take profits once we approach the Resistance Zone, look for Bear signal and confirmation bars that tell us the move is over and it's time to exit!
💡 Trade Idea 💡
Long Entry: $0.6533 🟥 Stop Loss: $0.6200 ✅ Take Profit: $0.7200 ⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Bull Channel, Bias to Long! 2. Price is currently breaking out, Target Resistance Zone. 3. Forming a Cup pattern, likely going to retest previous High. 4. RSI at 65.00 and above Moving Average, Bias to Long. 5. Target 1:2 Risk/Reward, Stop Loss below 30EMA.
⚠️ Risk Warning! ⚠️ Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
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Comment
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Looks like this trade did not pan out! If you took profits at 1:1 Risk/Reward congratulations! You either made money because you moved your stop up to entry, or you broke even when this massive bear candle hit the stop loss. If you didn't take profits by the time XRP hit $0.70, this was unfortunately a loss! As stated in the analysis, the position size should have been smaller than your maximum size since our distance from the stop loss was a bit larger than usual.
Setting a stop below the Daily 30EMA – solid protective strategy.
TraderEngineering
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@MyCryptoParadise_Simon, Thank you! It’s also reasonable to set it a bit below the top of the channel where the breakout occurred, but the probability that the stop will be hit is much higher. Adds a bit more risk but also more probability the Take Profit will be hit! So far so good!
pullbacksignal
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This is my idea, check it out
TraderEngineering
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@pullbacksignal, Excellent! Very clean and totally agree with it.