$ARK /USDT +19% BREAKOUT, BUT BEWARE OF OVERBOUGHT CONDITIONS!
ARK has just broken out of a 1-month downtrend. On the 4H timeframe, the price has moved above the Bollinger Upper Band + RSI 90!
What does that mean? Strong buying pressure, but a healthy correction is possible.
My plan: NO FOMO at 0.2115. Wait for a retest at 0.1950 to go Long, with targets at 0.2236 - 0.2319. SL below 0.1742.
If you want to Short, wait for rejection at 0.2236.
Volume is 26M, so don't fight the trend. Manage your risk!
This is not a recommendation to buy/sell. DYOR. Futures trading carries high risk.
1. BUY Setup (Trend Continuation) - Higher probability for now
Scenario: Wait for a healthy pullback; don't chase at 0.2115.
- Buy Entry 1 (Aggressive): 0.1950 - 0.1980 (1H BOLL MB area + retest of the 4H BOLL Upper Band that was just broken)
- Buy Entry 2 (Confirmation): 0.1800 - 0.1820 (4H BOLL MB)
- Stop Loss: below 0.1742 (24-hour Low) or 0.1650. Perps are brutal, so keep your SL tight at 4-6%.
- Take Profit: TP1 0.2236 (24h High), TP2 0.2319 (1H BOLL Upper Band), TP3 0.2683 (psychological level)
- Invalidation: If the 1H candle closes below 0.1582 (1H BOLL DN), the uptrend has failed.
Suitable for scalping Longs in futures.
2. SELL / SHORT Setup (Counter-trend, High Risk)
Scenario: Take advantage of extreme overbought conditions for a short-term reversal.
- Short Entry: 0.2230 - 0.2319 (24h High + 1H BOLL Upper Band area) ONLY if there is a rejection candle (pin bar, bearish engulfing on the 1H)
- Stop Loss: above 0.2400
- Take Profit: TP1 0.1950, TP2 0.1806
- Note: This goes against momentum + high volume, so the risk is greater. Not for beginners.
#ARKUSDT #Binance