SOL is one of the altcoins that has bounced off it’s 20 week MA (and out of the 50-62% reversal zone) with significant strength.
Elliott:
We are able to count an ABC (in green) to the downside, which completes wave (iv) in blue. Should this count be correct, we may expect the 5th and final wave to the upside.
Geometry:
Price should hold the median of the small pitchfork for the bullish scenario. It appears that price reacts to the large pitchfork and its Fibs as well.
MACD Crossover:
The crossover has occurred on the daily TF, which is an important signal for algos. The MFI is still below 50, indicating a potential retracement before further upside.
How I trade it:
The idea is to prepare long exposure in case the EW count is correct. We get a good risk-reward ratio at the bottom of the large pitchfork (165), because it is also the 62% retracement zone of the current wave. If price doesn’t retrace so far, a second idea may be to trade the breakout from the small pitchfork (193).
Elliott:
We are able to count an ABC (in green) to the downside, which completes wave (iv) in blue. Should this count be correct, we may expect the 5th and final wave to the upside.
Geometry:
Price should hold the median of the small pitchfork for the bullish scenario. It appears that price reacts to the large pitchfork and its Fibs as well.
MACD Crossover:
The crossover has occurred on the daily TF, which is an important signal for algos. The MFI is still below 50, indicating a potential retracement before further upside.
How I trade it:
The idea is to prepare long exposure in case the EW count is correct. We get a good risk-reward ratio at the bottom of the large pitchfork (165), because it is also the 62% retracement zone of the current wave. If price doesn’t retrace so far, a second idea may be to trade the breakout from the small pitchfork (193).