Crypto Analysis #4
SHIBUSDT BUY setup
Hello there, @tradersaan here, hope you all are doing very well. Today I am going to share my take on the crypto pair SHIBUSDT. I do chart analysis on tradingview and take trade on MT4 (Forex) and Binance (Crypto).
In this post I am going to analysis SHIBUSDT technical chart with price action and multiple timeframe perspective like D1, H4, H1, M30. Owright, let's go without further delay.
Daily Chart
So far the price has been in a range bound condition after making a down rally from the peak in the daily timeframe. So this could be an indication of profit taking scenario of postion traders. Or it could be simply the indication of market indecision situation i.e., who is in control now - buyers or sellers. Look at the chart below, from Jan,2022, buyers are pushing the market higher and after few points in gain, they lose their energy and sellers step in - this is what happened in a range bounded market. And one more noticeable thing is that at thursday(12.04.2022) SHIB has got some buyer pressure which has made the big bull candle from support to resistance, but it didn't manage to close above the resistance zone. And this is the big bull candle in last 2 months.
So we will want to trade here in a short-term approach until the price shows us a clear direction.
SHIBUSDT, D1, Range bound market after a big rally to the downside - indecisive. price could go in either direction
Image source: tradingview, prepared by me
4 Hourly Chart
In H4, we see that the price has made a minor support which was a resistance zone previously. The price has broken the resisance zone and has made it a minor support which is already tested twice and the price is showing some rejection in this H4 minor support zone .So we can expect that the price is likely to go up in the shown direction. But if the price breaks the support zone to the downside, then the next support is at D1 support zone from where we expect the market could find some buyers.
SHIBUSDT, H4, price has got some rejection in the minor support - indicating buyers are present in the market
Image source: tradingview, prepared by me
1 Hourly Chart
The support zone of H4 looks more clear in H1, look the price has tested this zone thrice which indicates buying pressure.
And also for the indicator confirmation I have used 50 & 200 MA. And in the H1 chart below 50 period MA is above the 200 period MA - meaning upward momentum.
SHIBUSDT, H1, 50 & 200 MA are aligned upwardly
Image source: tradingview, prepared by me
30 Minutes Chart
Now that we have made a short-term buy bias. Let's talk about exact entry and exit process
In M30, we see that the price is in a consolidation or congestion. And we find a resistance zone in that consolidation period. If the price makes a power move or breakout move of that resistance zone, we will have clear direction for short term. And once the price makes a pullback move to that broken resistance, then we will consider a buy entry there(as it is shown in the chart). The stop loss will possibly be below the broken resistance zone and the target profit will be at the D1 resistance (the next resistance where the market could get some sellers). The risk to reward ratio is pretty good here, so we can consider this buy setup as a good one.
SHIBUSDT, M30, buy entry on the breakout-pullback of the consolidation resistance
Image source: tradingview, prepared by me
Disclaimer: This post is not a trading mantra or get rich quick method, it is made only for educational purpose. I truely want to help others who want to learn Forex and Crypto trading and investing. Trading in the financial markerts involvs a lots of risk. I don't sell signal and don't recommend anybody to do signal trade. Trading in the financial markets is a get rich slow and consistent method. It demands patience & long-term projection and hard work. So be aware of social media scammers
This is it for today. Tomorrow I wil come up with my another crypto analysis, stay tunned.
Feel free to comment what you feel about this pair and it will be great if you show some supports by giving me upvotes.
Thank you so much if you make it to the end.
Hope it helps
Happy Trade 😊
By @tradersaan