ADA/BTC (Cardano) Bullish Trade Opportunity [Horizontal Levels]

In this idea I will explain how you can trade ADA (Cardano) using horizontal levels. I will also go over my suggestions for where to put stop-loss, take profit, and enter a position.

For a pair that has seen such a strong uptrend, it can be difficult to choose how to trade. To not get distracted too much by the recent price action I zoomed in a bit more on this chart so we can focus on getting some nice trades in.

It is tempting to go for a +100% trade on such a coin that has seen a massive pump, but we need to stay honest to ourselves and focus on getting consistent and good income. If you want to be a trader who's still here in the long run, stick with me.

This 6% opportunity is already really nice and should not be missed. Using the horizontal price movements we can see an important area that acted as resistance first, that turned into support later (S/R flip). This happened around the 0.0825 level.

We can use this level for our entry position as when the price retraces here it is likely that the price will change direction, and the lower we buy the higher our risk-reward will be. Furthermore, when we look at the RSI we see the price has negative price momentum, but the price is not oversold yet. This means the price might drop a bit lower still.

As for the take profit, I suggest to leave around 0.089 which will give us a beefy 6% return. I put it here because it is slightly under the horizontal resistance zone from the recent high.

As for the stop-loss, should the price drop through the support zone, I suggest to leave the trade. The price has pumped a lot, so it could also fall really hard. I suggest to put the stop loss slightly below the first level support zone to minimizes the chances of it being hit.

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- Trading Guru

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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!