We've been witnessing Negative Divergence on RSI
for 43 Days now. The price has reached to upper trendline's resistance area
. The Red zone is the confluence zone with the previous highs of 65.8 and 69.6. Considering the context of this Divergences and the dropping volume
, I'll be looking for Bearish
Candles in the Red zone for a SHORT entry. Putting SL slightly above the 70 resistance and targeting the downside support zone
of 50-52 as first target and 40-43 as the second target will yield us a nice Risk/Rewards ratio of 2.52 and 4.13 with a potential profit of %21.21 and %34.43. But I must consider laddering my entries from 61-62 zone because my latest experiences taught me that Crypto Pairs often react priorly to the targeted entry zone. So I will make sure to enter before the specified area. Let's see how this is going to work out.
Happy Hunting Everyone