Technical Analysis Observations: #DOT_UPDATE
Current Price: 9.438 USDT, up by 28.97%.
Moving Averages (MA):
Short-term (5): 24,632.31
Long-term (10): 29,850.08 The short-term MA indicates a recent bullish sentiment but with price consolidation around this level.
MACD:
DIF is above DEA, showing positive momentum.
Histogram bars have turned green, signaling a potential trend continuation upward.
Volume: Noticeable spikes, confirming market activity and interest.
Candlestick Patterns: Short-term volatility with price testing both higher and lower levels.
Strategy
1. Long Trade
Entry Point: Enter around 9.35-9.45 USDT if the price retraces to test support at the short-term MA.
Take Profit (TP):
TP1: 9.75 USDT (Immediate resistance level).
TP2: 10.00 USDT (Psychological resistance).
Stop Loss (SL): 9.20 USDT (Below recent support to minimize risk).
Trade Duration: 4-12 hours, depending on volume and momentum.
2. Short Trade
Entry Point: Enter short near 9.75 USDT (resistance level) if rejected or price forms bearish divergence.
Take Profit (TP):
TP1: 9.30 USDT (Support near short-term MA).
TP2: 9.00 USDT (Key psychological support).
Stop Loss (SL): 9.90 USDT (Above resistance breakout confirmation).
Trade Duration: 4-8 hours.
Contingency Plans
Plan A (Price moves against you slightly):
If SL is hit, wait for a new setup (e.g., price breaking critical levels).
Reanalyze volume and patterns before entering a new trade.
Plan B (Bullish breakout):
If the price breaks above 9.90 USDT, hold the long trade and adjust TP to:
TP1: 10.20 USDT.
TP2: 10.50 USDT.
Use a trailing stop-loss to lock in profits.
Plan C (Bearish breakout):
If the price falls below 9.20 USDT, close long positions.
Enter a short trade targeting:
TP1: 9.00 USDT.
TP2: 8.80 USDT.
Plan D (Sideways movement):
Avoid trading until clear signals emerge. Monitor breakout points at 9.20 USDT (support) and 9.90 USDT (resistance).
Risk Management
Risk-per-trade: Max 1-2% of total capital.
Confirm trade entries with additional indicators like RSI or Bollinger Bands.
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