I am planning to enter a long position in XLMUSDT at the current market price of 0.11850. This decision is primarily rooted in a Price Action analysis that aligns with the basic principles of Dow Theory. XLMUSDT has been consistently forming higher highs and higher lows, signaling a bullish trend.
In addition to the Price Action pattern, the Relative Strength Index (RSI) is showing a bullish divergence, further supporting the bullish thesis for this trade.
To manage risk, I've set a stop-loss order at the level of the last higher-lower low, which is at 0.11440. This stop-loss level is designed to limit potential losses if the market moves against the trade.
For the profit target, I've set a 1:1 risk-reward ratio, with a target price of 0.12300. This means that the expected profit is roughly equal to the initial risk, providing a balanced risk-reward profile for this trade.
It's important to remember that trading in cryptocurrency markets carries inherent risks, and it's crucial to apply sound risk management and consider your own risk tolerance when implementing trading strategies.
In addition to the Price Action pattern, the Relative Strength Index (RSI) is showing a bullish divergence, further supporting the bullish thesis for this trade.
To manage risk, I've set a stop-loss order at the level of the last higher-lower low, which is at 0.11440. This stop-loss level is designed to limit potential losses if the market moves against the trade.
For the profit target, I've set a 1:1 risk-reward ratio, with a target price of 0.12300. This means that the expected profit is roughly equal to the initial risk, providing a balanced risk-reward profile for this trade.
It's important to remember that trading in cryptocurrency markets carries inherent risks, and it's crucial to apply sound risk management and consider your own risk tolerance when implementing trading strategies.
Note
Target 1 Hit 🎯Trade closed: target reached
TP 2 HIT 🎯Trade Closed
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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.