Honestcowboy

Risky Bearish Divergence - small scalp potential.

Short
COINBASE:ADABTC   Cardano / Bitcoin
As you can see by the dark red snake trend and price action this symbol made a small correction during a very strong downtrend. Price just crossed the tenkan-sen and could bounce back down.

At such moments I go to a lower timeframe to look at the fractals to see if we see confirmation of price returning to downtrend. There is not yet confirmation of a downtrend and likely the price will keep going up as it made a double bottom on the daily timeframe which can result in sideways behaviour or a strong uptrend. In the case of sideways action we can be at the top of the range at the moment if we see confirmation of a forming downtrend.

However we see a very clear bearish RSI divergence on the 15 minute charts, I am hoping for the price to go down that is wy I set and alert line to notify me when it is going down. In the scenario of it starting to breaking bottom fractals in the lower timeframe after the divergence it is a good moment to make a quick scalp with a small stop loss (previous upper fractal or kijun sen) I do not expect the price to break previous bottom fractal of daily chart but it might as well do. I would be happy with a profit of 1-2%

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Website —> honestalgo.com
Website —> honestalgo.com
Website —> honestalgo.com

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