CAKE (Pancakeswap) completed its third push to the upside and rendered four Daily candles in a row with large wicks on the top. Today's close marks the fifth. Does that mean we're in for a drop?

How do we trade this? 

I believe a pullback here is imminent. That doesn't mean a short is justified, we are in a bull trend and our bias should remain long. However, the short-term signals like the three legs, 5 wicks on top, and a high RSI all indicate a pullback is here.

It's reasonable to short this on a lower timeframe like the 1HR but on the Daily, we should be looking for a long. Wait for the price to come back down to the $2.84 area and find support. We need to see a strong buy signal and confirmation bar to justify an entry. I caveat this proposal with the state of the crypto market as a whole, it's a pivotal moment that could spell a reversal which will likely drag CAKE down with it.

In summary, zoom into the 1HR timeframe to find a short, wait for a long entry opportunity at $2.84 per my description above.

 Trade Idea

Long Entry: $2.937
Stop Loss: $2.64
Take Profit: $3.53
Risk/Reward Ratio: 1:2

 Key Takeaways 

1. Bull Channel with three pushes up, large wicks on third push.
2. Gap to Daily 30EMA.
3. Don't enter a trade here, need more price action.
4. RSI at 75.00 and above Moving Average. Supports Pullback.
5. Crypto Market at Pivotal Moment, Consider Reversal Possibility.

 Trading Tip 
You can trade any candle on the chart, the question is what trades are more worth your while and fit with your personality traits. First, understand how to analyze a chart, then understand yourself and how you best interact with your analysis such that you make money.

 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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