AAVEUSDT is currently in a downtrend, characterized by lower highs and lower lows. However, there is a bullish divergence observed on the 4-hour (4H) timeframe, indicating a potential reversal in the downtrend.
Here's a simplified trading plan based on this analysis:
Entry: Consider initiating a long position on a breakout above the lower high level at $86.85 using a buy stop order.
Stop Loss (SL): Place a stop loss order at $81.40 to manage risk and protect against potential losses.
Take Profit (TP): Set take-profit levels to achieve a 1:1, 1:2, and 1:3 risk-reward ratio:
TP1: Set the first take-profit level at $92.30
TP2: Aim for the second take-profit level at $97.75
TP3: Target the third take-profit level at $103.20
This trading strategy anticipates a bullish reversal based on the observed bullish divergence and the potential breakout above the lower high level. However, it's crucial to monitor the price action closely and adjust the strategy as needed to adapt to market movements.
Here's a simplified trading plan based on this analysis:
Entry: Consider initiating a long position on a breakout above the lower high level at $86.85 using a buy stop order.
Stop Loss (SL): Place a stop loss order at $81.40 to manage risk and protect against potential losses.
Take Profit (TP): Set take-profit levels to achieve a 1:1, 1:2, and 1:3 risk-reward ratio:
TP1: Set the first take-profit level at $92.30
TP2: Aim for the second take-profit level at $97.75
TP3: Target the third take-profit level at $103.20
This trading strategy anticipates a bullish reversal based on the observed bullish divergence and the potential breakout above the lower high level. However, it's crucial to monitor the price action closely and adjust the strategy as needed to adapt to market movements.