$LOKA TRADE SETUP
LOKA/USDT 1D Chart Analysis:
Overview:
The daily chart of LOKA/USDT shows a clear downtrend with multiple lower highs (LH) and lower lows (LL), but there is a bullish divergence forming on the RSI, suggesting that a potential reversal may be in play.
Buy Signal:
- Entry Point:
Consider entering a long position between 0.2000 - 0.2134 USDT as the price attempts to break the descending trendline.
Take Profit Levels:
1. TP1: 0.2237 USDT (initial resistance from the downtrend)
2. TP2: 0.3390 USDT (major resistance from the previous high)
Stop Loss:
- SL: 0.1900 USDT, just below the recent lows, to protect from downside risks.
Leverage:
- Use 3x - 5x leverage for safer risk management given the daily timeframe.
Risk Management:
- Risk-to-Reward Ratio: Aim for at least a 2:1 ratio on the first target (TP1), and 3:1 on the second target (TP2).
- Adjust your stop loss to break even once the price hits 0.2237 USDT.
Strategy:
- Watch for breakout confirmation on the daily close above 0.2134 USDT.
- If price breaks below 0.1900 USDT, reconsider long positions and wait for further confirmation.
This setup provides a potential swing trade opportunity with a focus on catching the trend reversal while managing risk.
