Technical analysis by TraderEngineering about Symbol S: Buy recommendation (7/11/2024)

FTM fell into a pullback as expected since my April 11th update. We found resistance at $1.25, created a micro double-top, then pulled back in two strong legs, but truly 3 in total. Should we be bearish or bullish on Fantom? How do we trade this? 🤔 FTM predictably printed a double-top after three strong pushes up into the immediate resistance zone of $0.97 to $1.25. That reversal pattern played out into a three-legged pullback, leaving us near Push #1 support at around $0.40. I think we can expect to continue testing this support area for awhile, however, I do not believe we will break and hold below $0.40. I would not enter a long position just yet unless you're fading into a position. What we need now is two or three tests of the Push #1 support area between $0.35 and $0.40, forming a double-bottom or reverse head and shoulders pattern. A good strong bull signal candle followed by a confirmation candle is the signal we need to enter a long position, taking half profits at 1:1 Risk/Reward, moving the stop loss up to the entry price, then swinging the latter half of the position to 1:2 Risk/Reward. We also need to watch Bitcoins sentiment as the price action plays out. I expect Bitcoin will fall into a two-legged pullback to around $40,000-$45,000, which should take the alt market down with it either keeping it in a trading range, or bringing it to lower lows. Until Bitcoins sentiment shows a clear bull signal after a likely pullback, it's one more indicator we should allow to play out before getting long in FTM. A final point of data is the RSI low and below the moving average around 39.00 which it could remain in this area for some time. This indicates we should be looking for long entries, but should wait for the price action to guide us. 💡 Trade Idea 💡 Long Entry: $0.45 🟥 Stop Loss: $0.285 ✅ Take Profit #1: $0.64 ✅ Take Profit #2: $0.82 ⚖️ Risk/Reward Ratio: 1:2 🔑 Key Takeaways 🔑 1. Three legs up into a resistance zone after a breakout 2. Micro Double-top reversal pattern 3. Three-legged pullback to Push #1 Support 4. Wait for double-bottom followed by strong signal and confirmation candles 5. RSI at 39.00 and below the moving average. Supports waiting for a long entry. 💰 Trading Tip 💰 It's reasonable to take half profits at the first resistance target in a long trade or the first support target in a short trade. Using a 1:1 Risk/Reward Ratio for your first target, you can move your stop loss up to your entry price, locking in profits. This allows you to watch the rest of the trade execute without worrying about losing money, which helps improve trading psychology and the equity in your account. ⚠️ Risk Warning! ⚠️ Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk! Like 👍 and Follow to learn more about: 1. Reading Price Action 2. Chart Analysis 3. Trade Management 4. Trading Psychology