**Key Observations:**
1. **Price:** The current price of AAVE is 144.07, with an upward change of 1.45% in the short term.
2. **Moving Averages (MA60):** The price is trading slightly above the 60-period MA (143.84), which is a positive sign, indicating potential strength.
3. **MACD (Moving Average Convergence Divergence):**
- DIF (0.07) and DEA (0.07) show that the MACD lines are flat, indicating a neutral momentum.
- No significant crossover signal is observed yet.
4. **Volume:** There's an increase in volume during certain periods, indicating that traders are actively trading AAVE.
### **Trade Strategy:**
#### **For Long (Buy) Position:**
1. **Entry Point:** If the price remains above the MA60 and you see a positive MACD crossover (when the yellow line crosses above the pink line), this would confirm a bullish trend. Enter the long position when the MACD starts showing positive momentum.
2. **Stop Loss (SL):** Set your SL slightly below the MA60 line, around 143.27 or lower, depending on risk tolerance. If the price breaks below this level, it could signal a downtrend.
3. **Take Profit (TP):** Look for a TP target around 148–150, especially if the bullish trend continues. Higher resistance levels can be determined based on how the market reacts.
4. **Duration:** Hold the trade for a short-term swing of 1–2 days, depending on how the MACD and volume develop. Reevaluate if there's a strong resistance around the 150 mark.
#### **For Short (Sell) Position:**
1. **Entry Point:** If the price breaks below the 143.84 MA and the MACD shows a negative crossover (yellow line crosses below the pink line), enter a short position as a bearish trend may develop.
2. **Stop Loss (SL):** Set SL slightly above the MA60 or near 144.50 to protect against short-term upward corrections.
3. **Take Profit (TP):** Look for TP around 141–142 based on previous support zones, or adjust according to market conditions.
4. **Duration:** Short-term trade, as momentum could quickly shift. Monitor for about 1–2 days.
### **If Trade Goes Against You:**
- **Adjust Stop Losses:** If the trade goes against you, adjust your SL to reduce losses. If the market shows strength above 144.50 on a short trade, close the position to avoid further loss.
- **Hedge Strategy:** You can hedge with partial positions to manage risk, e.g., opening small opposing trades to reduce exposure.
### **Signals to Watch:**
- **Volume Spike:** A spike in volume after a MACD crossover will confirm a stronger price movement in the direction of the trade.
- **MACD Crossover:** A crossover is crucial to determining when momentum is building in either direction.
