SUSHI trade setup
Weekly: long term analysis
After around 95% deep correction during the bear market,
SUSHIUSDT has revisited its lower point from which we can identify a reverse H&S pattern.
This pattern is characteristic of a trend reversal when formed on a strong support. Let's have a closer look on shorter timeframe
Daily: short term analysis
Increasing volumes on the upward movements and decreasing ones when prices decrease are also very characteristic of such a pattern and reveal the psychology of the market participants.
Strategy
Buy signal has been given on the weekly close above the horizontal resistance line around 1,8$.
Invalidation
Mental Stop: just below the last consolidation low at 1,33$. This setup proposes a nice Risk Reward
If prices retrace to this stop level we will wait for the weekly closing price then set a Stop loss ¼ or Risk below the weekly close price.
Risk = Distance between Mental stop and entry point.
After around 95% deep correction during the bear market,
SUSHIUSDT has revisited its lower point from which we can identify a reverse H&S pattern. This pattern is characteristic of a trend reversal when formed on a strong support. Let's have a closer look on shorter timeframe
Daily: short term analysis
Increasing volumes on the upward movements and decreasing ones when prices decrease are also very characteristic of such a pattern and reveal the psychology of the market participants.
Strategy
Buy signal has been given on the weekly close above the horizontal resistance line around 1,8$.
- Objective 1: Nearest resistance line at 2,80$ (+50%)
- Objective 2: H&S target + next resistance at 4,98$ (+170%)
- Objective 3: Next resistance at 10,56$ (+480%)
Invalidation
Mental Stop: just below the last consolidation low at 1,33$. This setup proposes a nice Risk Reward
If prices retrace to this stop level we will wait for the weekly closing price then set a Stop loss ¼ or Risk below the weekly close price.
Risk = Distance between Mental stop and entry point.
Trade fermée: ordre d’arrêt atteint
Our mental stop was quickly touch then real stop was executed at 1.33$ on the 8th of April.
We are out of this trade with a controlled loss of 25%.
Let's move on and focus on our next opportunities.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.