LINK → Chainlink Potential Triple Top! Short Scalp Opportunity?Chainlink has been attempting to break the $16-$17 range since November 11th and has failed there times. After the crypto sell-off on January 3rd, Chainlink made one more attempt but fell short at $15.75. With that lower high, is it time to short?
How do we trade this? 🤔
We have a potential triple top, a doji (one bar trading range) just under the Resistance Zone which is a potential lower high, and a crypto market that's burning hot and likely nearing a strong pullback. To confirm a short entry, we need a strong bear bar closing on or near its low below the Daily 30EMA. Stop loss should be just above the previous high.
💡 Trade Idea 💡
Short Entry: $14.20
🟥 Stop Loss: $17.90
✅ Take Profit: $10.50
⚖️ Risk/Reward Ratio: 1:1
🔑 Key Takeaways 🔑
1. Potential Triple Top Reversal.
2. Doji candle just below Resistance Zone.
3. Look for Bear Candle Confirmation Below 30EMA.
4. Use Low Position Size, 1:1 Risk/Reward Scalp.
5. RSI at 51.00 and above the Moving Average. Indecision.
💰 Trading Tip 💰
There is over a 60% chance of a measured move after the breakout of a major resistance, normally, a trading range. That means the distance from the trading range resistance to the top of the breakout will happen again above the top of the breakout.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
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