HARMONY ONE TECHNICAL ANALYSIS AND TRADE PLANE BY BF
Technical Analysis (4-hour chart) + TRADE PLAN by BF
Pattern Identification:
Falling Wedge Formation: The price is moving inside a falling wedge, typically considered a bullish reversal pattern. The wedge has defined support and resistance lines converging as the price moves downward, indicating potential upcoming breakout to the upside.
Key Support and Resistance Levels:
Support Level: Around $0.01287, highlighted as a solid base where buyers have historically stepped in.
Resistance Level: Around $0.01528, marking a level where sellers may become more aggressive. This is a significant target if the wedge breaks to the upside.
Volume Analysis:
The volume seems to have been decreasing as the price has been moving within the wedge, which is common before a breakout. A surge in volume will be a strong confirmation of any potential breakout.
Indicators:
VMC Cipher_B Divergences: There are green dots visible at the bottom, indicating possible bullish divergences. These divergences suggest price momentum weakening on the downside, aligning with the falling wedge’s bullish potential.
RSL (Relative Strength Level): The current value is 38.54, below the neutral 50 mark, which indicates bearish momentum. However, it's near the oversold territory, and any uptick from here could support a reversal.
Stochastic RSI: At 5.65/8.79, indicating that the asset is in an oversold condition. This adds to the potential for a bullish reversal once the stochastic begins to turn upwards.
HMA+ Histogram: The current histogram shows a shift toward a neutral or slightly bullish sentiment. The transition from red to green would be a strong indicator to enter long positions.
Time and Potential Breakout Catalyst:
There is a clock icon indicating a potential timing window, which may suggest that the breakout could be imminent. The combination of indicators and the falling wedge pattern suggests that a bullish move could be expected soon.
Trading Plan:
Long Scenario:
Entry Point: A breakout above the wedge's resistance line and a confirmation above $0.01365 with a strong increase in volume.
First Target: $0.01528 (immediate resistance level). This would likely be a conservative target as it corresponds to previous highs and the upper boundary of the range.
Second Target: If the momentum continues strongly, the price could test the next level near $0.01600.
Stop Loss: Place a stop loss below the current support at around $0.01250, to limit downside risk in case of a false breakout.
Short Scenario (Alternative if Breakout Fails):
Entry Point: If price breaks down below $0.01287 and volume increases on the downside.
Target: Look for a decline towards $0.01200, which is a psychological round number and could act as support in a bearish scenario.
Stop Loss: Above $0.01350, as a recovery above this level could negate the bearish breakdown.
Risk Management:
Risk no more than 1-2% of your trading capital per trade.
Wait for clear confirmations such as volume spikes or candlestick pattern validation before entering trades.
Harmony (ONE) is showing signs of potential bullish reversal with the falling wedge pattern supported by multiple indicators pointing towards oversold conditions. However, waiting for a breakout confirmation is essential before entering long positions. Proper risk management and trade discipline should be applied to navigate potential volatility.
Pattern Identification:
Falling Wedge Formation: The price is moving inside a falling wedge, typically considered a bullish reversal pattern. The wedge has defined support and resistance lines converging as the price moves downward, indicating potential upcoming breakout to the upside.
Key Support and Resistance Levels:
Support Level: Around $0.01287, highlighted as a solid base where buyers have historically stepped in.
Resistance Level: Around $0.01528, marking a level where sellers may become more aggressive. This is a significant target if the wedge breaks to the upside.
Volume Analysis:
The volume seems to have been decreasing as the price has been moving within the wedge, which is common before a breakout. A surge in volume will be a strong confirmation of any potential breakout.
Indicators:
VMC Cipher_B Divergences: There are green dots visible at the bottom, indicating possible bullish divergences. These divergences suggest price momentum weakening on the downside, aligning with the falling wedge’s bullish potential.
RSL (Relative Strength Level): The current value is 38.54, below the neutral 50 mark, which indicates bearish momentum. However, it's near the oversold territory, and any uptick from here could support a reversal.
Stochastic RSI: At 5.65/8.79, indicating that the asset is in an oversold condition. This adds to the potential for a bullish reversal once the stochastic begins to turn upwards.
HMA+ Histogram: The current histogram shows a shift toward a neutral or slightly bullish sentiment. The transition from red to green would be a strong indicator to enter long positions.
Time and Potential Breakout Catalyst:
There is a clock icon indicating a potential timing window, which may suggest that the breakout could be imminent. The combination of indicators and the falling wedge pattern suggests that a bullish move could be expected soon.
Trading Plan:
Long Scenario:
Entry Point: A breakout above the wedge's resistance line and a confirmation above $0.01365 with a strong increase in volume.
First Target: $0.01528 (immediate resistance level). This would likely be a conservative target as it corresponds to previous highs and the upper boundary of the range.
Second Target: If the momentum continues strongly, the price could test the next level near $0.01600.
Stop Loss: Place a stop loss below the current support at around $0.01250, to limit downside risk in case of a false breakout.
Short Scenario (Alternative if Breakout Fails):
Entry Point: If price breaks down below $0.01287 and volume increases on the downside.
Target: Look for a decline towards $0.01200, which is a psychological round number and could act as support in a bearish scenario.
Stop Loss: Above $0.01350, as a recovery above this level could negate the bearish breakdown.
Risk Management:
Risk no more than 1-2% of your trading capital per trade.
Wait for clear confirmations such as volume spikes or candlestick pattern validation before entering trades.
Harmony (ONE) is showing signs of potential bullish reversal with the falling wedge pattern supported by multiple indicators pointing towards oversold conditions. However, waiting for a breakout confirmation is essential before entering long positions. Proper risk management and trade discipline should be applied to navigate potential volatility.
Wyłączenie odpowiedzialności
Informacje i publikacje przygotowane przez TradingView lub jego użytkowników, prezentowane na tej stronie, nie stanowią rekomendacji ani porad handlowych, inwestycyjnych i finansowych i nie powinny być w ten sposób traktowane ani wykorzystywane. Więcej informacji na ten temat znajdziesz w naszym Regulaminie.