MATIC → Polygon Pullback then Bounce to New Highs? Let's Answer.
MATIC has been caught between a trading zone since November but has finally touched the Support Zone and bounced back above the Daily 200EMA. Should we long here?
How do we trade this? 🤔
The Support Zone was touched and a strong bounce led the price back above the 200EMA. We are currently hovering between the Daily 30EMA and 200EMA with no clear signals to buy or sell. The RSI is around 46.00 and above the Moving Average, another sign for a long position. The only thing we're missing is a solid Risk/Reward Ratio and a buy signal, which requires the price pullback a bit more before we can enter the market.
We ought to target at least a 1:2 Risk/Reward, but I believe we have the runway for a 1:3 Risk/Reward given the distance to the previous high of $1.092. Target the $0.735 price area for an entry and place a stop loss below the previous low in the Support Zone around $0.655, the first Take Profit at $0.815, and the final Take Profit around $0.975 or until you see a sell signal. Move the stop loss up to the entry price when Take Profit #1 is hit to lock in profits.
The first take profit is placed around the 30EMA zone since it may act as resistance. The second take profit is placed just before $1.00 where there has been a few failed attempts to break it since November.
💡 Trade Idea 💡
Long Entry: $0.735
🟥 Stop Loss: $0.655
✅ Take Profit #1: $0.815
✅ Take Profit #2: $0.975
⚖️ Risk/Reward Ratio: 1:3
🔑 Key Takeaways 🔑
1. Trading range after a bull run justified long bias.
2. Contact with the Support Zone followed by a bounce.
3. Price hovering between 30EMA and 200EMA, wait for pullback.
4. Look for long entry around $0.735 for a 1:3 Risk/Reward ratio.
5. RSI at 46.00 and above the moving average, supports long bias.
💰 Trading Tip 💰
It's reasonable to take half profits at the first resistance target in a long trade, or the first support target in a short trade. Using a 1:1 Risk/Reward Ratio for your first target, you can move your stop loss up to your entry price, locking in profits. This allows you to watch the rest of the trade execute without worry of losing money. This helps improve trading psychology and the equity in your account.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and Follow to learn more about:
1. Reading Price Action
2. Chart Analysis
3. Trade Management
4. Trading Psychology
How do we trade this? 🤔
The Support Zone was touched and a strong bounce led the price back above the 200EMA. We are currently hovering between the Daily 30EMA and 200EMA with no clear signals to buy or sell. The RSI is around 46.00 and above the Moving Average, another sign for a long position. The only thing we're missing is a solid Risk/Reward Ratio and a buy signal, which requires the price pullback a bit more before we can enter the market.
We ought to target at least a 1:2 Risk/Reward, but I believe we have the runway for a 1:3 Risk/Reward given the distance to the previous high of $1.092. Target the $0.735 price area for an entry and place a stop loss below the previous low in the Support Zone around $0.655, the first Take Profit at $0.815, and the final Take Profit around $0.975 or until you see a sell signal. Move the stop loss up to the entry price when Take Profit #1 is hit to lock in profits.
The first take profit is placed around the 30EMA zone since it may act as resistance. The second take profit is placed just before $1.00 where there has been a few failed attempts to break it since November.
💡 Trade Idea 💡
Long Entry: $0.735
🟥 Stop Loss: $0.655
✅ Take Profit #1: $0.815
✅ Take Profit #2: $0.975
⚖️ Risk/Reward Ratio: 1:3
🔑 Key Takeaways 🔑
1. Trading range after a bull run justified long bias.
2. Contact with the Support Zone followed by a bounce.
3. Price hovering between 30EMA and 200EMA, wait for pullback.
4. Look for long entry around $0.735 for a 1:3 Risk/Reward ratio.
5. RSI at 46.00 and above the moving average, supports long bias.
💰 Trading Tip 💰
It's reasonable to take half profits at the first resistance target in a long trade, or the first support target in a short trade. Using a 1:1 Risk/Reward Ratio for your first target, you can move your stop loss up to your entry price, locking in profits. This allows you to watch the rest of the trade execute without worry of losing money. This helps improve trading psychology and the equity in your account.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and Follow to learn more about:
1. Reading Price Action
2. Chart Analysis
3. Trade Management
4. Trading Psychology
-Joe Dean
Trader Engineering Course (Coming Soon!)
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Trader Engineering Course (Coming Soon!)
TraderEngineering.com
