FTM → Fantom Falls to 200EMA! Long back to $0.53? Let’s Answer!

FTM marched to the upside with three pushes up in a bull channel touching $0.565, followed by a pullback with three pushes down and strong bull support. Is it time to long?

How do we trade this? 🤔

FTM → Fantom Falls to 200EMA! Long back to $0.53? Let's Answer!

A long entry is nearly justified. Here's what we have in favor of the long bias; Three pushes up in a bull channel ending at $0.565, followed by three pushes down in a micro-bear channel with strong bull signal bars, and we have a good follow-through bars leading up to the price action being just above the Daily 30EMA. The Daily 200EMA is showing some strong support as well.

What we need is a break of the Daily 30EMA to justify to our long. You could argue a long is justified here simply by the data we already have, and I wouldn't argue against you; I would just say that Daily 30EMA is in the way, so this is a lower probability trade, but also less initial risk because your stop loss is closer.

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: $0.403
🟥 Stop Loss: $0.323
✅ Take Profit: $0.483
⚖️ Risk/Reward Ratio: 1:1


🔑 Key Takeaways 🔑

1. Three pushes up in a bull channel
2. Micro Bear Channel forms with three pushes down.
3. Strong bull signal bars at Daily 200EMA
4. Suggested to wait for break of Daily 30EMA
5. RSI at 48.00 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/


Like 👍 and Follow to learn more about:

1. Reading Price Action
2. Chart Analysis
3. Trade Management
4. Trading Psychology