📉 $LUNA2 down! Three Classic Signals for a Perfect Short 🚨
Hello, Traders! Let's dissect the chart of LUNA2USDT (30m). This is what we call a manual setup for a Short position.
🔍 Trend Setup
The mark price is at 0.16390 USDT, and the trend is aggressively bearish. How do we know?
Price below Moving Averages (MA): The number one rule of a bearish trend is that the price operates below the Moving Averages (MA), and these act as dynamic resistances.
MA(7) (The closest, 0.1700) has not been surpassed.
MA(25) (0.1797) and MA(99) (0.1891) confirm medium-term selling pressure.
Death Cross: Notice how the MAs are ordered: MAshort < MAmedium < MAlong (MA(7) < MA(25) < MA(99)). This is the bearish hierarchical order that indicates extremely strong selling momentum.
Confirmation with MACD: The MACD is at 0.00084950 and has just exited negative territory.
WATCH OUT! Although the MACD is crossing to positive (DIF above DEA), the DEA and DIF lines are almost flat. This indicates that the small "bounce" (the green candle of the last few hours) is weak and only serves as a pause before the next leg of the drop. There is no real strength to sustain the rise.
🎯 Short Opportunity
Key Resistance Point: Any rise towards the MA(7) (0.1700) is a high probability Short opportunity, as it acts as the nearest dynamic ceiling.
Risk Management: The liquidation level (0.1874) is far above, which is poor risk management if one entered Long. In a Short, your Stop Loss should be just above the MA(7) or MA(25) to protect capital.
