ADA Long Trade with Video Explanation

2022년 9월 10일

This is just a cleaned up chart from my analysis HERE.

Trade logic summary:
Cardano has been holding this ~$0.40 range for the past four months or so while making lower highs creating what appears to me to be a triangle.

Using the triangle to estimate a time horizon for this trade, I'd expect a break out in one direction or another by the end of November.
The strength of that breakout will also be telling, but we'll review that data as it comes.

The Trade
Time Frame is 2-6 months
Entry is at $0.5223
Stop-loss is approx 20% below my entry. I do not have a hard stop-order set, but I do have alerts set on the way down to that region as I am actively managing this trade.
Target is open as this is a long position, though I will likely take some profit at the $0.75 range (alerts set in that region as well)

Sizing
For this trade I used roughly 20% of my cash available to trade, which is about 12% of my trading portfolio tied up in this trade over the next few months.
Risk
With a floating stop at around 20% below my entry, loss would result in about a 4% loss of cash available to trade and about a 2.4% loss of my current portfolio balance.
Profit
If long plays out and initial target of $0.75 is reached, that would result in about a 45% gain on trade, a 9% increase of cash available to trade, and 5.4% increase of current portfolio balance.

I'll try to be sure to update this post as we move forward. If anyone follows this trade, feel free to follow up in the future.

Thanks for reading!