#TradingAnalysis101 Trading Analysis 101: CARDANO (ADA/USDT) Long and Short Entries

Long Entry Setup

Entry Range: $0.690 - $0.710

Positioned near the 200-day Moving Average (MA), a historically strong support level. This zone provides a good entry point, supported by the long-term trend.

Stop Loss: $0.645

Set the stop loss below the recent low to limit risk if the market reverses. This allows for price fluctuations but ensures minimal loss if the market moves against you.

Take Profit Targets:

TP1: $0.750 (First resistance level)

This is a reasonable target for securing profit while keeping an eye on market movement.

TP2: $0.778 (Recent 24-hour high)

Reaching this level suggests bullish momentum and supports further upward movement.

TP3: $0.820 (Next major resistance)

The next key resistance zone, ideal for taking profits during a strong bullish trend.

Risk/Reward Ratio: ~2:1

A favorable risk/reward ratio of 2:1, meaning for every dollar risked (entry to stop loss), there's a potential reward of about two dollars (entry to TP1). This ratio boosts your chances of long-term success.

Confirmation for Long Entry

RSI (Relative Strength Index)

Look for RSI to bounce from the 40 level, indicating increasing bullish momentum. A move back above 40 supports an entry signal.

Stochastic RSI

A crossover in the Stochastic RSI indicates bullish price action, providing further validation for entering a long position.

Price Action

Ensure that the price stays above the 200 MA, which supports the uptrend and confirms the long position.

Short Entry Setup (Sell Setup)

Entry Range: $0.750 - $0.770

Enter a short if the price hits this range, where strong resistance might trigger a bearish sentiment and potential retracement.

Summary

Long Entry Setup: Well-defined with clear profit-taking targets and solid risk management strategies. The combination of support near the 200 MA and confirmation from indicators offers a solid plan for entering a long position.

Short Entry Setup: Relies on price resistance and confirmation indicators, with clear# $ADA