UNI → Continuing in the Trading Range! Short Here? Or Long Soon?
Uniswap has failed to break out of the 19th-month trading range between $4.00 and $7.30 on four occasions. Should we continue to look for a short entry?
How do we trade this? 🤔
My previous Uniswap analysis showed a couple of good short entries just before and just after the price attempted to break the trading range resistance. Since then the price has fallen to the 30EMA and stagnated. We're currently in a situation where the proper distance to a stop loss is just above the previous high above the trading range resistance. We're also sitting on the Weekly 30EMA support and are lacking a sell signal.
Until we have a re-test and failure of the trading range resistance with a strong sell signal, it's best to wait on the sidelines. Even then, we should remain cautious in what will likely become a strong crypto market bull run this year into next year, so I only advocate for a 1:1 Risk/Reward scalp.
💡 Trade Idea 💡
Short Entry: $6.85
🟥 Stop Loss: $8.55
✅ Take Profit: $5.150
⚖️ Risk/Reward Ratio: 1:1
🔑 Key Takeaways 🔑
1. UNI has yet to break out of the 18-month trading range.
2. Finding some support at Weekly 30EMA.
3. Wait for the price to get closer to trading range resistance.
4. Short scalp position is reasonable taking profit just below the Weekly 30EMA
5. RSI at 53.00, just below the Moving Average, supports pullback, then fall.
💰 Trading Tip 💰
Trading Ranges are two-legged traps for both bulls and bears. When the price rises toward the trading range resistance in two legs, the bulls expect more but don't get it and drive the price down when their trades are exited. The same goes for the bears in the opposite direction. The probability of profit is higher when longing the bottom of a trading range and shorting the top. In the case of this Uniswap chart, this trading range started after a long bear run, so it's reasonable to have a bear bias and short the trading range until its broken successfully.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and Follow to learn more about:
1. Reading Price Action
2. Chart Analysis
3. Trade Management
4. Trading Psychology
How do we trade this? 🤔
My previous Uniswap analysis showed a couple of good short entries just before and just after the price attempted to break the trading range resistance. Since then the price has fallen to the 30EMA and stagnated. We're currently in a situation where the proper distance to a stop loss is just above the previous high above the trading range resistance. We're also sitting on the Weekly 30EMA support and are lacking a sell signal.
Until we have a re-test and failure of the trading range resistance with a strong sell signal, it's best to wait on the sidelines. Even then, we should remain cautious in what will likely become a strong crypto market bull run this year into next year, so I only advocate for a 1:1 Risk/Reward scalp.
💡 Trade Idea 💡
Short Entry: $6.85
🟥 Stop Loss: $8.55
✅ Take Profit: $5.150
⚖️ Risk/Reward Ratio: 1:1
🔑 Key Takeaways 🔑
1. UNI has yet to break out of the 18-month trading range.
2. Finding some support at Weekly 30EMA.
3. Wait for the price to get closer to trading range resistance.
4. Short scalp position is reasonable taking profit just below the Weekly 30EMA
5. RSI at 53.00, just below the Moving Average, supports pullback, then fall.
💰 Trading Tip 💰
Trading Ranges are two-legged traps for both bulls and bears. When the price rises toward the trading range resistance in two legs, the bulls expect more but don't get it and drive the price down when their trades are exited. The same goes for the bears in the opposite direction. The probability of profit is higher when longing the bottom of a trading range and shorting the top. In the case of this Uniswap chart, this trading range started after a long bear run, so it's reasonable to have a bear bias and short the trading range until its broken successfully.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
Like 👍 and Follow to learn more about:
1. Reading Price Action
2. Chart Analysis
3. Trade Management
4. Trading Psychology
-Joe Dean
Trader Engineering Course
**Available Now at TraderEngineering.com**
Trader Engineering Course
**Available Now at TraderEngineering.com**
Powiązane publikacje
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.