Long Position Setup Explanation (FARTCOIN)
Chart Timeframe and Indicators:
Timeframe: Intraday (specific time not mentioned but likely hourly or 15-min based on candlestick size and structure).
Indicators used:
Volume
SMA (9-period Simple Moving Average)
RSI (14-period Relative Strength Index)
Entry Point:
Current Entry Price: Around 0.7521
This is the price at which you're looking to enter a long position (expecting the price to go up).
Target (Take Profit):
Price Target: 0.8085
This is where you expect the price to reach, marking your take profit level.
The green area on the chart represents the profit zone.
Stop Loss:
Stop Loss Price: 0.7319
This is your risk management level; if the price drops to this level, your position will automatically close to limit your losses.
The red area below the entry is your risk zone.
Risk to Reward Ratio:
Judging from the visual ratio on the chart:
You’re risking around 2 cents per coin (from 0.7521 to 0.7319)
And aiming to gain around 5.5 cents per coin (from 0.7521 to 0.8085)
Risk-Reward Ratio: Approximately 1:2.75, which is considered a good setup.
Technical Confirmation:
Price Action: There’s a small bullish candle forming after a short pullback, indicating potential for upward movement.
SMA: The price is trying to reclaim the 9-period SMA from below. If it crosses and holds above, it's a bullish sign.
RSI: Currently at 45.69, rising from below. If it crosses above 50, it confirms bullish momentum.
Volume Analysis:
Volume seems to have spiked earlier (large black candle) and is decreasing now.
Low volume during the pullback and potential increase on the next up-move would confirm buying strength.
Conclusion:
You have placed a bullish trade setup on FARTCOIN with a favorable risk-to-reward ratio. You’re entering at 0.7521, targeting a move to 0.8085 with a stop loss at 0.7319. The trade looks technically justified based on price structure, volume, SMA, and RSI conditions.