$SOL Analysis of SOL/USD Chart (30-min)
Pattern Identified: The chart shows a Head and Shoulders pattern, which is a bearish reversal pattern. The price has already broken the neckline, confirming a downtrend.
Market Structure:
Change of Character (ChoCH): Indicates shifts in trend direction.
Break of Structure (BOS): Confirms market direction.
Demand Zone (Gray Zone): Buyers reacted from this area, providing a temporary bullish opportunity.
Supply Zones (Red Zones): These are potential resistance areas where selling pressure may resume.
Temporary Buy Trade Setup
This is a counter-trend trade within an overall bearish market.
Entry
Buy Entry: Around 137.80 - 138.00
Reason: Price bounced from a demand zone, indicating a short-term bullish correction.
Take Profit (Exit)
TP1 (First Target): 142.65 (Near the first supply zone)
TP2 (Final Target): 145.69 (Major resistance, stronger supply area)
Stop Loss (SL)
SL: 135.26 (Below the demand zone to minimize risk)
Risk Management
Risk/Reward Ratio: 1.91
Risk per Trade: 2.54 (1.84%)
Potential Gain: 4.85 (3.52%)
Recommendation: Use 1-2% of account risk per trade to stay protected.
Final Thoughts
Trend: Overall bearish; this buy is a short-term pullback.
Caution: Watch for rejection at supply zones to possibly flip to a short position in alignment with the main downtrend.
