Hello traders .
as usual let's start with the higher time frame :
here we have 1W chart for the ADA :
in the weekly time frame we can clearly see that the ADA created very massive bearish divergence between RSI and the price , so what does this mean ?🤔🤔
if you pay attention to the details you can find out , that there is another bearish sign in the chart ; which is the volume . so if you look at the volume you will find out that as price start to goes up , volume started to comes down , so we can conclude that this is reason why that the we have bearish divergence in the RSI .
but let's look at the daily chart :
in the daily chart we can see that ADA created something like the falling wedge pattern also you can call this one as a bull flag pattern . and also already this pattern break out but we can't see enough volume for this break out , but in my opinion for opening long position you must wait for the clear break out from the daily structure ( blue resistance box ) around 2.410$ ;
but now what🙄 ? in the weekly chart i talked about the bearish divergence , but now i say ADA created bull flag pattern ! this is something weird ; but you should notice that always you must respect to the chart , but what does this mean ?
this means that if you saw bearish divergence in the chart always wait for the confirmation of this divergence because it could easily failed.
when you see that in the chart , price start to create lower Highs or create bearish patterns , and you see massive drop in the value of the RSI , this is confirmation of the bearish divergence .
let's look a the 4H time frame :
in the 4H time frame you can see after the breaking the bull flag pattern , price create something like the triangle in the 4H chart , in my opinion it's make sense to see this , because in the point of the break out price haven't sufficient volume to consider this as legitimate break out .
it's better to wait for the break out from the 4H triangle and close at least 1 candle above the resistance box to open long position , if price decided to break to the down side , price must hold above the previous low and also the daily support structure otherwise this could be confirmation of the bearish divergence which i talked about in the begining of this idea.
let's talk about potential price targets for the ADA :
bull flag pattern :
if you consider this pattern as bull flag , the target of this pattern should be around 1.0 fib level around 3.9$ but always take profit in the important FIB level , for example you could close your long position around 0.618 fib golden ration because in that area we have 2 points of confluance :
1_ rising wedge target is the top of the wedge
2_ FIB golden ratio and also the ATH resistance area .
falling wedge pattern :
the technical target of the falling wedge is top of the wedge . but in this case we have 2 different patterns ; which is : falling wedge , triangle .
so you must consider both of them as a same pattern and find best area for take profit , as you can see in the chart the technical target of the triangle which is shown by the orange line is some where between 0.382 and 0.5 FIB ratio . and also the technical target of the wedge is at 0.5 ;
so in this case you can close your long position around 0.5 FIB level.
I hope you enjoyed this analysis.
Do not forget to like and subscribe
share my ideas with your friends , thanks for watching my ideas
as usual let's start with the higher time frame :
here we have 1W chart for the ADA :
in the weekly time frame we can clearly see that the ADA created very massive bearish divergence between RSI and the price , so what does this mean ?🤔🤔
if you pay attention to the details you can find out , that there is another bearish sign in the chart ; which is the volume . so if you look at the volume you will find out that as price start to goes up , volume started to comes down , so we can conclude that this is reason why that the we have bearish divergence in the RSI .
but let's look at the daily chart :
in the daily chart we can see that ADA created something like the falling wedge pattern also you can call this one as a bull flag pattern . and also already this pattern break out but we can't see enough volume for this break out , but in my opinion for opening long position you must wait for the clear break out from the daily structure ( blue resistance box ) around 2.410$ ;
but now what🙄 ? in the weekly chart i talked about the bearish divergence , but now i say ADA created bull flag pattern ! this is something weird ; but you should notice that always you must respect to the chart , but what does this mean ?
this means that if you saw bearish divergence in the chart always wait for the confirmation of this divergence because it could easily failed.
when you see that in the chart , price start to create lower Highs or create bearish patterns , and you see massive drop in the value of the RSI , this is confirmation of the bearish divergence .
let's look a the 4H time frame :
in the 4H time frame you can see after the breaking the bull flag pattern , price create something like the triangle in the 4H chart , in my opinion it's make sense to see this , because in the point of the break out price haven't sufficient volume to consider this as legitimate break out .
it's better to wait for the break out from the 4H triangle and close at least 1 candle above the resistance box to open long position , if price decided to break to the down side , price must hold above the previous low and also the daily support structure otherwise this could be confirmation of the bearish divergence which i talked about in the begining of this idea.
let's talk about potential price targets for the ADA :
bull flag pattern :
if you consider this pattern as bull flag , the target of this pattern should be around 1.0 fib level around 3.9$ but always take profit in the important FIB level , for example you could close your long position around 0.618 fib golden ration because in that area we have 2 points of confluance :
1_ rising wedge target is the top of the wedge
2_ FIB golden ratio and also the ATH resistance area .
falling wedge pattern :
the technical target of the falling wedge is top of the wedge . but in this case we have 2 different patterns ; which is : falling wedge , triangle .
so you must consider both of them as a same pattern and find best area for take profit , as you can see in the chart the technical target of the triangle which is shown by the orange line is some where between 0.382 and 0.5 FIB ratio . and also the technical target of the wedge is at 0.5 ;
so in this case you can close your long position around 0.5 FIB level.
I hope you enjoyed this analysis.
Do not forget to like and subscribe
share my ideas with your friends , thanks for watching my ideas