Hey everyone!
Today I am taking a look at ADA on the 4 hour time frame. As you can see, ADA has formed a perfect descending triangle depicted in orange.
Typically descending triangles are a continuation pattern. ADA has been trending downwards, so its appearance makes sense. Price has stayed perfectly on the horizontal support, and almost perfect to the descending resistance, with our latest exception, which is the reason for adding a higher resistance line.
If price breaks above the orange line, this idea will break down.
It is time to remain patient and level headed, and wait to see if it breaks through the bottom of the triangle.
There is a green major support line on the daily, so I am cautious to enter into a short trade until price breaks first below the triangle, and secondly below the green support line with confirmation.
With the height of the triangle, a break through would mean that price could drop to $0.96
Depicted at $0.96 I have drawn a white horizontal line, and this area seems to be highly contentious, a very crucuial support level , also near $1.00, a large even number, a huge psycological level.
Obviously this trade may not occur, but if it does, a good stop loss is important. Hopefully this trade works out. Have a great night everyone, and as always, make sure to do your own due diligence.
Today I am taking a look at ADA on the 4 hour time frame. As you can see, ADA has formed a perfect descending triangle depicted in orange.
Typically descending triangles are a continuation pattern. ADA has been trending downwards, so its appearance makes sense. Price has stayed perfectly on the horizontal support, and almost perfect to the descending resistance, with our latest exception, which is the reason for adding a higher resistance line.
If price breaks above the orange line, this idea will break down.
It is time to remain patient and level headed, and wait to see if it breaks through the bottom of the triangle.
There is a green major support line on the daily, so I am cautious to enter into a short trade until price breaks first below the triangle, and secondly below the green support line with confirmation.
With the height of the triangle, a break through would mean that price could drop to $0.96
Depicted at $0.96 I have drawn a white horizontal line, and this area seems to be highly contentious, a very crucuial support level , also near $1.00, a large even number, a huge psycological level.
Obviously this trade may not occur, but if it does, a good stop loss is important. Hopefully this trade works out. Have a great night everyone, and as always, make sure to do your own due diligence.