AVAX → Avalanche Pullback Complete? Long to $50 or Higher!

AVAX ran three pushes up in a bull channel just shy of the 2022 Resistance area topping out at $50. That was followed by a pullback and a strong bull signal. Is it time to long?


How do we trade this? 🤔

AVAX → Avalanche Pullback Complete? Long to $50 or Higher!

A long entry is close to being justified! Here's what we have in favor of the long bias; Three pushes up in a bull channel ending at $50 (psychological number because it's even) just below the 2022 resistance price of $53.25, followed by three pushes down in a micro-bear channel, the final push of the bear channel ended in a strong bull signal bar, and we have a good bull bar close on the third after the signal bar.

What we need now is a strong bull close above the 30EMA. A desirable data point would be a re-test of the micro-bear channel resistance as support to add probability to our long. However, I do not believe this is required to justify a long entry.

I believe we need to be conservative longing at this stage in the crypto market, which is why I only advocate for a 1:1 scalp at a lower-than-maximum position size allowed for your trading strategy. I think Bitcoin and Ethereum have a larger pullback on the horizon, but do believe the market will come up a bit before it goes down.


💡 Trade Idea 💡

Long Entry: $34.90
🟥 Stop Loss: $23.90
✅ Take Profit: $45.90
⚖️ Risk/Reward Ratio: 1:1


🔑 Key Takeaways 🔑

1. Three pushes up in a bull channel ending at 2022 Resistance.
2. Micro Bear Channel forms with three pushes down.
3. Strong bull signal buy bar on the third push.
4. Wait for a close above the Daily 30EMA to enter a long position.
5. RSI at 46.00 and above the Moving Average, supports long bias.


💰 Trading Tip 💰
The longer a trend continues after 3 legs, the probability of that trend continuing lessens. Because of this decreased probability, we ought to reduce our risk when entering trades.


⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!


Find me at TradingView.com/u/TraderEngineering/


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