ICP trading setup idea

5 mar

Weekly: long term analysis

ICPUSDT defined an All Time Low (ATL) at the 3$ level.
After that low, ICP witnessed a very strong momentum upward with incredible volumes. It is now consolidating for several weeks at the current price level. Let's analyze it in a lower time frame to plan an entry.

Daily: short term analysis



Since the ATL, ICP had a very bullish momentum with huge volumes.

After a period of consolidation under a very clear resistance level and a contracting volatility (see narrow Bollinger Bands), ICP is now attempting to break out of this resistance level with an increase in volumes.

If breakout is confirmed, all ingredients for a powerful upward movement and a good trading setup will be gathered.

Strategy

Buy signal will be given on a daily close above the horizontal resistance line at 14,75$.

1. Objective 1: Nearest resistance line at 23,50$ (+60%)
   
2. Objective 2: Next resistance at 39$ (+160%)
   
3. Objective 3: First wave target and next resistance at 82$ (+500%)
   

Invalidation

Mental Stop: just below the last consolidation low at 12$. This setup proposes a nice Risk Reward
If prices retrace to this stop level we will wait for the weekly closing price then set a Stop loss ¼ or Risk below the weekly close price.
Risk = Distance between Mental stop and entry point.

10 nov

Trade chiuso: stop raggiunto

Our mental stop was touch after a false buy signal then real stop was executed at 12$ on the 8th of April.
We are out of this trade with a controlled loss of less than 20%.

Let's move on and focus on our next opportunities.