Dot has been in a H4 range and is forming a bullish structure. The structure right now is uncertain on H4. Where as daily, it is still in a bullish market. Market bounced off the support and is heading towards the resistance. Once the resistance is broken, we will revaluate our trading plan. For now, we will be looking to go long at the support level.

The descending trendline has been broken out for buys. After this breakout buy, we will wait for the retracement which is in confluence with the support level.

The 75-78.6% retracement level is in confluence with the support level. This golden area also implicates the pressure for trendline breakout buys. If price action reflects a bullish pressure from the retracement level, we will have an added confirmation for longs.

Both the EMA’s are currently bullish as prices are above both the EMA’s. EMA 50 was pierced for the bear run but then again, was pulled up above the EMA 50. EMA 200 is still far off and could be considered as a potential profit target. At the support level, we could see the EMA 200 being retested along with other confluences in play.

RSI is at 68 level, which is a bullish region. CCI is at 184, which is also a bullsih region. Being in an over bought region, we need to wait for the market to take the pullback/ retracement, in order for the oscillators to neutralize themselves. At the area of our long position, we can easily see what the oscillators would be showing at that time in order to go long.

We have to be aware of trading cryptocurrency in this parabolic environment is risky. Once market breaks the support, we will consume the loss and wait for another entry. If the market breaks the range to the upside, then we will form a new trading plan.

Polkadot reaching its buy zone

Oct 12 2021

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