I gave a pretty vague outlook on Cardano the other day so I figure I should probably fess up a bit and let you all know exactly how I feel about it. Right now, it looks like we're in an inverted head and shoulder pattern. It looks like it wants to explode out of here and o straight for the target which is $0.75 but not so fast. Lets discuss a few things here.
First, do you actually know how to trade a head and shoulders pattern? Pattern trading can be pretty decent as long as you do it right. Ideally, we'll break out of the current pattern and do a nice solid retest of the neckline. Your stop loss should be the low of the right shoulder and your target should be 100% of the size of the head to the neckline. That puts us at right below 75 cents.
To compare, ADA is trading at 40 cents now. That's a pretty good reward, but what is the risk? Currently a 13% risk. That's not insignificant. Play your cards right and you'll be okay but don't do anything dumb. Wait for a breakout and get a retest of this level we're at now (around 40 cents) and you'll be ok. Just keep that stop loss to make sure you survive another day.
First, do you actually know how to trade a head and shoulders pattern? Pattern trading can be pretty decent as long as you do it right. Ideally, we'll break out of the current pattern and do a nice solid retest of the neckline. Your stop loss should be the low of the right shoulder and your target should be 100% of the size of the head to the neckline. That puts us at right below 75 cents.
To compare, ADA is trading at 40 cents now. That's a pretty good reward, but what is the risk? Currently a 13% risk. That's not insignificant. Play your cards right and you'll be okay but don't do anything dumb. Wait for a breakout and get a retest of this level we're at now (around 40 cents) and you'll be ok. Just keep that stop loss to make sure you survive another day.
CE - BitDoctor
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CE - BitDoctor
Access our private indicators and join our Premium Room: bitdoctor.org
Beware of scams - I'll never DM you asking for funds.
Access our private indicators and join our Premium Room: bitdoctor.org
Beware of scams - I'll never DM you asking for funds.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.