XVGUSDT
, 4h On the daily timeframe, price is trading around a previous swing low area which is also above the 200SMA suggesting the long term trend is bullish.
On the 4h, two chart patterns are emerging; 1) Descending Triangle & 2) Cup and Handle.
It is prudent for traders to wait for break out or break down of the pattern to initiate a trade.
For a long entry, trade could be initiated after the breakout of either chart patterns but stop loss could be tricky on this one.
1) For the descending triangle, SL goes below the swing low, that is the horizontal base of the pattern.
2) For the Cup and Handle, a tight SL could be set just below the low of the cup’s handle (green circle)
Take Profit (TP) targets could be the previous support area turned support (red rectangle) with subsequent targets at the various market structure levels indicated with the red circles.
As always, ‘’anything can happen’’ so let’s be patient as the market unfolds. #DYOR