Technical analysis by SiDec about Symbol ALGO: Sell recommendation (7/22/2025)

ALGO has delivered an impressive +124% rally from $0.1518 to $0.336 in just 25 days, completing a 5-wave Elliott impulse right into the yearly open resistance. We are now in a correction phase, and the current structure is showing a head and shoulders pattern, with the right shoulder currently forming. Let’s break down the key levels and setups. 🧩 Technical Breakdown ➡️ ABC Corrective Structure: Targeting wave C near the trend-based fib extension (TBFE) at $0.2574 ➡️ Fib Retracement Confluence: 0.382 retracement of the entire 5-wave move → $0.2656 Previous weekly open (pwOpen) → $0.2639 Liquidity pocket likely to be swept Anchored VWAP from the $0.1518 low (start of the bullish trend) → currently at $0.2532, acting as a major support layer Conclusion: Long opportunity zone between $0.2656–$0.2574 Trade Setups 🔴 Short Setup: Why? ALGO has lost dOpen and pdOpen — a bearish sign for downward continuation. Entry Zone: Between dOpen and pdOpen Stop-loss: Above dOpen Target (TP): 0.382 fib retracement (~$0.2656) R:R: ≈ 1:3.5 🟢 Long Setup: Entry Zone: Laddered Entries between $0.2656–$0.2574 Stop-loss: Below anchored VWAP (~$0.2532) Target (TP): ~$0.2785+ R:R: ≈ 1:2.65 🛠 Indicator Note I’m using my own indicator called "DriftLine - Pivot Open Zones [SiDec]" for this analysis, which I recently published. ✅ Feel free to use it in your own analysis! Just head over to my profile → “Scripts” tab → apply it directly to your charts. 💡 Educational Insight: Why Confluence Matters High-probability trades aren’t based on just one tool or level — they come from confluence, where multiple signals align: fib levels, VWAP, liquidity pools, price structures , and key levels. For example, in this ALGO setup, it’s not just the fib retracement or just the VWAP — it’s the stacking of all these elements together that creates a precise zone with a better statistical edge. ✍️ Lesson: Don’t chase trades off single signals; stack tools for confirmation. Patience, confirmation, and confluence — as always, the keys to high-probability setups. 🚀 _________________________________ 💬 If you found this helpful, drop a like and comment! Want breakdowns of other charts? Leave your requests below.Short trade target reached! The ABC correction completed perfectly at the 1.0 Trend-Based Fib Extension.