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

Long Entry Setup

- Entry Range: $0.690 - $0.710

- This entry zone is positioned near the 200-day Moving Average (MA), which serves as a dynamic support level, and is historically a strong support area.

- Stop Loss: $0.645

- Place your stop loss below the recent low to mitigate risk in case of a reversal. This is a strategic placement to minimize losses while allowing for price fluctuations.

- Take Profit Targets:

- TP1: $0.750

- First resistance level. This target allows for a secure profit while evaluating market conditions.

- TP2: $0.778

- Recent 24-hour high. Hitting this level indicates bullish momentum and validates further upward movement.

- TP3: $0.820

- Next major resistance. This level serves as a potential profit-taking area for strong bullish trends.

- Risk/Reward Ratio: ~2:1

- This ratio suggests that for every dollar risked (from entry to stop loss), there is a potential reward of about two dollars (from entry to TP1). It's crucial to ensure that your risk/reward ratio is favorable to increase the probability of long-term trading success.

Confirmation for Long Entry:

1. RSI (Relative Strength Index): Look for the RSI to bounce from the 40 level, indicating increasing bullish momentum.

2. Stochastic RSI: A crossover upward signals a bullish price action, providing further confirmation for entering a long position.

3. Price Action: Ensure that the price remains above the 200 MA, reinforcing the uptrend and validating entry points.

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Short Entry Setup (Sell Setup)

- Entry Range: $0.750 - $0.770

- This entry point is triggered if the price encounters strong resistance in this range, reflecting bearish sentiment and potential retracement.