Trade Setup for $USUAL /USDT:
1. Entry Price: Enter a short position near the current level at $1.4097 or upon a retest of the resistance around $1.4215.
2. Stop-Loss: Set a stop-loss above the recent high at $1.4300 to minimize risk.
3. Take-Profit Targets:
Target 1: $1.3800 (recent support zone and psychological level).
Target 2: $1.3500 (key horizontal support from prior price action).
4. Technical Analysis:
The price appears to be rejecting the resistance zone at $1.4215, signaling potential exhaustion of buying pressure.
Increased volume during the drop suggests bearish momentum is building.
The moving averages (MA5 and MA10) are narrowing, hinting at a possible crossover toward a bearish trend
5. Indicators:
MACD shows a slight bearish divergence with a weakening histogram, further supporting the downside move.
Volume is declining after the spike, which often signals a reversal.
6. Risk Management:
Risk-to-reward ratio is favorable, aiming for 1:2 or better.
Position size should be adjusted to account for volatility in this pair.
7. Timeframe: Short-term intraday trade based on the 1-minute chart. Monitor closely for swift movements.
8. Market Context: If the price breaks above $1.4300, invalidate the short setup and wait for a new opportunity.
9. Trailing Stop: Use a trailing stop to secure profits if the price moves significantly in your favor.
10. Leverage: Utilize moderate leverage to balance risk and potential returns.