Hello traders,
I'm seeing a compelling long setup forming on the XRP/USDT 4H chart. While the immediate trend has been bearish, multiple key indicators are now signaling that a significant bounce or reversal is highly probable.
1. Trend & Context (The "Why")
After a strong uptrend, the price has experienced a pullback, confirmed by a Bearish Change of Character (ChoCh). However, the price has now reached a critical support level where we can look for long opportunities.
Key Price Action Support: The price is currently finding support directly on the EMA 200. This is a major long-term moving average that frequently acts as a strong floor for price during a pullback.
Momentum Exhaustion Signal: The Innotrade MC Orderflow oscillator is giving a powerful confirmation for a potential bottom:
The oscillator is deep in the OVERSOLD zone (below 20), indicating that selling pressure is exhausted.
CRITICAL MTF CONFLUENCE: The Multi-Timeframe Cycle Table is the key to this trade. It shows that both the 4H and Daily timeframes are "Oversold". When higher timeframes like the Daily show exhaustion, it significantly increases the probability of a strong reversal on lower timeframes.
2. Entry, Stop Loss, and Targets (The "How")
This setup provides a clear, high-probability trade plan with a good risk-to-reward ratio.
Entry: An entry around the current price ($3.03 - $3.05) is viable as we are at the EMA 200 support. For a more conservative entry, wait for the MC Orderflow oscillator to cross back above its yellow MA.
Stop Loss (SL): $2.89. This places the stop loss safely below the recent swing low and the EMA 200. A break below this level would invalidate the bullish thesis.
Take Profit (TP) Targets:
TP1: $3.25 (Targeting the cluster of short-term EMAs and the recent swing highs).
TP2: $3.40 (The next logical area of resistance from the previous price structure).
TP3: $3.66 (The major swing high, a longer-term target if the bullish trend resumes).
Conclusion
This trade idea presents a strong case for a long position. The combination of a major technical support level (EMA 200) with a confirmed multi-timeframe momentum exhaustion signal (Daily Oversold) creates a high-probability environment for a bullish reversal.
Disclaimer: This is not financial advice. This analysis is for educational purposes only. Always conduct your own research and manage your risk appropriately.
I'm seeing a compelling long setup forming on the XRP/USDT 4H chart. While the immediate trend has been bearish, multiple key indicators are now signaling that a significant bounce or reversal is highly probable.
1. Trend & Context (The "Why")
After a strong uptrend, the price has experienced a pullback, confirmed by a Bearish Change of Character (ChoCh). However, the price has now reached a critical support level where we can look for long opportunities.
Key Price Action Support: The price is currently finding support directly on the EMA 200. This is a major long-term moving average that frequently acts as a strong floor for price during a pullback.
Momentum Exhaustion Signal: The Innotrade MC Orderflow oscillator is giving a powerful confirmation for a potential bottom:
The oscillator is deep in the OVERSOLD zone (below 20), indicating that selling pressure is exhausted.
CRITICAL MTF CONFLUENCE: The Multi-Timeframe Cycle Table is the key to this trade. It shows that both the 4H and Daily timeframes are "Oversold". When higher timeframes like the Daily show exhaustion, it significantly increases the probability of a strong reversal on lower timeframes.
2. Entry, Stop Loss, and Targets (The "How")
This setup provides a clear, high-probability trade plan with a good risk-to-reward ratio.
Entry: An entry around the current price ($3.03 - $3.05) is viable as we are at the EMA 200 support. For a more conservative entry, wait for the MC Orderflow oscillator to cross back above its yellow MA.
Stop Loss (SL): $2.89. This places the stop loss safely below the recent swing low and the EMA 200. A break below this level would invalidate the bullish thesis.
Take Profit (TP) Targets:
TP1: $3.25 (Targeting the cluster of short-term EMAs and the recent swing highs).
TP2: $3.40 (The next logical area of resistance from the previous price structure).
TP3: $3.66 (The major swing high, a longer-term target if the bullish trend resumes).
Conclusion
This trade idea presents a strong case for a long position. The combination of a major technical support level (EMA 200) with a confirmed multi-timeframe momentum exhaustion signal (Daily Oversold) creates a high-probability environment for a bullish reversal.
Disclaimer: This is not financial advice. This analysis is for educational purposes only. Always conduct your own research and manage your risk appropriately.
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.
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.