Timeframe: 240M
Main Scenario: EOS/USD is somehow expected to drop further after the temporary rebound. You can see that it is trapped within an extended sideways movement. It is pressuring the outside sliding line (sl1) of the minor ascending pitchfork. A valid breakdown will open the door for more drops in the upcoming period. Technically, it could drop after the failure to reach and retest the 9.447411 and o stabilize above the lower median line (lml).
Alternative Scenario: A false breakdown below the outside sliding line (sl1) will invalidate the bearish scenario.
Entry/Stop Loss/ Take Profit: A valid breakdown below the outside sliding line (sl1) it will signal a further drop, so we may sell it from 7.067531 level. The Stop Loss could be placed above the former highs, at 9.144566 and the Take Profit at 2.861537 level.
Duration: 3-5 days
Consolidation/Ratification level: You can drag the Stop Loss below the opening price only if the rate will make a valid breakdown below the ML.
Warning Level: It is very important for the rate to validate the breakdown below the outside sliding line (sl1) because a false breakdown will signal a potential increase again and it will invalidate a further drop.
Risk Management: Risk/Reward Ratio: 2.02
Main Scenario: EOS/USD is somehow expected to drop further after the temporary rebound. You can see that it is trapped within an extended sideways movement. It is pressuring the outside sliding line (sl1) of the minor ascending pitchfork. A valid breakdown will open the door for more drops in the upcoming period. Technically, it could drop after the failure to reach and retest the 9.447411 and o stabilize above the lower median line (lml).
Alternative Scenario: A false breakdown below the outside sliding line (sl1) will invalidate the bearish scenario.
Entry/Stop Loss/ Take Profit: A valid breakdown below the outside sliding line (sl1) it will signal a further drop, so we may sell it from 7.067531 level. The Stop Loss could be placed above the former highs, at 9.144566 and the Take Profit at 2.861537 level.
Duration: 3-5 days
Consolidation/Ratification level: You can drag the Stop Loss below the opening price only if the rate will make a valid breakdown below the ML.
Warning Level: It is very important for the rate to validate the breakdown below the outside sliding line (sl1) because a false breakdown will signal a potential increase again and it will invalidate a further drop.
Risk Management: Risk/Reward Ratio: 2.02