ADA Correction Nearing Completion — Trade It Like a Pro

15 May

ADA is respecting structure beautifully and currently consolidating after completing a 5-wave impulse move. The key question now is: where are the next high-probability trade setups?

Let’s break it down step by step.

Market Structure & Elliott Context

ADA has completed a full 5-wave bullish sequence, and—as expected—is now in a correction phase. This appears to be forming a classic ABC correction.

Using the Fibonacci retracement tool:

• 0.5 retracement of the entire move sits at → $0.7534
  
• This aligns perfectly with the previous swing high at $0.746 — a level that has yet to be retested
  
• The 1:1 trend-based Fib extension of a potential ABC correction puts Wave C at → $0.7492
  

Confluence Check:

This entire support zone (~$0.75) is stacked with technical alignment:

✅ Previous swing high: $0.746
✅ 0.5 Fib retracement: $0.7534
✅ 1:1 extension: $0.7492
✅ Daily 21 EMA: $0.7455
✅ Daily 21 SMA: $0.7347
✅ Point of Control (POC): ~$0.7318
✅ Anchored VWAP: Also sitting in this zone
✅ Pitchfork golden pocket: Aligns as dynamic support

All of these support indicators point to one thing: this ~$0.75 zone is a high-probability long entry area.

🟢 Long Setup

Entry zone: Ladder between $0.77 – $0.75

• Average entry: ~$0.76
  
• Stop-loss: Below $0.7318 (under POC)
  
• Target: $0.9212 (0.618 retracement of the recent down wave)
  
• R:R: ~5:1
  
• Potential upside: +22%
  

🔴 Short Setup (on Rejection Only)

• Entry: $0.9212 (0.618 Fib retracement of downtrend)
  
• Stop-loss: Above 0.666 Fib → ~$0.958
  
• Target: previous swing high or yearly open
  
• R:R: ~1.4:1 (it can be adjusted tighter upon confirmation)
  

This short setup isn’t ideal in terms of R:R unless we see clear rejection. But with confirmation — like an SFP, bearish engulfing, or divergence — the stop can be tightened, making the risk-to-reward much more favourable.

📘 Educational Insight: Why Structure Beats Emotion

In trading, the strongest setups occur where multiple tools converge—Fib levels, EMAs, VWAP, volume zones, and past price action. When these align, it’s not about guessing—it’s about preparing.

The key is to wait for structure to come to you, not the other way around. Patience allows clarity. Clarity allows precision. And precision pays.

💡 Final Thoughts

The plan is clear. Levels are set. Now it’s just observation and discipline.

Good trades don’t chase attention — they present themselves to those who wait.

___________________________________
If you found this helpful, leave a like and comment below! Got requests for the next technical analysis? Let me know.

16 May

Not

🔄 ADA Long Position Update:

Adjusting stop-loss slightly below $0.71 to better protect the setup.
Laddering additional limit orders down to $0.73 to improve average entry.
Structure still intact. Letting the zone do its work. Patience.

18 May

Not

ADA bounced strongly off the 0.618 Fib retracement. Now eyeing the next leg up — targeting the 0.618 Fib at $0.9212, with the $1 psychological level as the overall goal for now:

19 May

Not

ADA just tapped the POC cleanly—keep an eye on the $0.69 zone, where the 0.786 Fib retracement and anchored VWAP line up, in case we get another leg down.

22 May

Not

🚨 ADA Update – May 22

ADA is moving right on track and reacting beautifully to key levels.

✅ Price bounced cleanly from the 0.702 Fib retracement of the impulse wave, in perfect confluence with the POC, giving an ideal long entry around $0.71.

✅ Now, ADA has reached the golden pocket resistance of the recent downward move:

- 0.618 Fib: $0.8054
- 0.666 Fib: $0.8128

Currently seeing a rejection from this zone as traders take profits, a natural reaction after a strong move up.

🎯 The primary target for this long setup remains at the 0.618 Fib retracement of the full downtrend at $0.9212.
As long as ADA holds above support, the trade remains valid and is playing out as planned.

Patience pays, let the chart do the work. 📈✅

23 May

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