Technical analysis by MAAwan about Symbol ADA: Sell recommendation (1/9/2025)

1. Market Analysis:Asset: ADA/USDT (Cardano vs. USDT)Pattern: Bullish Gartley harmonic pattern detected on the daily timeframe.Key Levels: Price is approaching the D-point, which is at the 78.6% Fibonacci retracement of the XA leg, near a strong support zone, signaling a potential bullish reversal.2. Gartley Pattern Details:XA Leg: Strong initial move upward.AB Leg: Retraces approximately 61.8% of XA.BC Leg: Extends between 38.2% and 88.6% of AB.CD Leg: Completes at 78.6% retracement of XA (D-point).D Completion Zone: A critical area to monitor for bullish price action.3. Trade Setup:Entry Point:Enter a long position at or near the D-point when a bullish reversal signal is confirmed (e.g., bullish engulfing, hammer candlestick, or a pin bar).Stop-Loss:Place the stop-loss slightly below the D-point or the nearest support level to protect against pattern invalidation.Take-Profit Levels:TP1: 38.2% Fibonacci retracement of the CD leg.TP2: 61.8% Fibonacci retracement of the CD leg.TP3 (Optional): Full retracement to the XA high.4. Risk Management:Position Size: Use proper risk management, risking no more than 1-2% of your trading capital.Risk-Reward Ratio: Aim for at least a 1:2 risk-reward ratio.5. Additional Confirmation:Volume Analysis: Look for an increase in volume as the price reaches the D-point, which indicates strong buying interest.Oscillator Signals: Use RSI or MACD to confirm oversold conditions or bullish divergence near the D-point.6. Trade Execution:Order Placement:Set a buy limit order near the D-point if confident in the pattern.Alternatively, wait for a confirmed bullish signal before entering the trade.Trail Stops: Adjust stop-loss as the trade progresses to secure profits and reduce risk.