our chart shows a short setup on ETH/USD (Ethereum vs US Dollar) using resistance rejection and target-based risk/reward analysis. Here's a breakdown of what's happening and a trading idea based on it:
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๐ Chart Summary:
Resistance Zone (around $3,560 - $3,600): Price hit this zone and rejected it.
Entry Point: Short position was likely opened after the rejection candle.
Target Zone (around $3,300 - $3,310): Marked as the price target.
Risk Zone (Stop-loss area): Slightly above the resistance zone.
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๐ง Trading Idea:
๐ Short Trade Plan:
Bias: Bearish (expecting a price drop)
Entry Zone: ~$3,550 - $3,580 (after confirmation of resistance rejection)
Stop-Loss: ~$3,600+
Take-Profit (TP): ~$3,300
๐ Risk to Reward Ratio (RRR):
Risk: ~$50 per ETH
Reward: ~$250 per ETH
RRR = 1:5 โ favorable for a short trade
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Conditions to Monitor:
1. Bearish Confirmation: Watch for strong bearish candles or breakdown below minor support.
2. Volume: Increase in sell volume = stronger move down.
3. Market Sentiment: Ensure broader crypto sentiment is not overly bullish (check BTC and ETH news).
4. Invalidation: If price closes above resistance, setup is invalid.
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โ ๏ธ Caution:
News or events can quickly reverse technical patterns.
Always use proper risk management.
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