QLC Ranging between 120-235 satts respecting both levels. Looking for a swing from the bottom of the current channel, to the top when the short term down trend is broken.
Because QLC is such a low satt coin, position size would be very small and only 0.5% Risk on this position, if a trade presents itself. Looking for an entry off a clean break and retest of trend with an obvious Higher-Low to be made. The market structure of this is currently still bearish, however I will be watching for a change as price is squeezed against the current downtrend. Only if the change in structure is clear will I take this trade.
Things to consider; - QLC has been trending down for 56 days since the 6th of Feb 2020. - Wicks to the downside every time price comes close to the current support around 120 satt level. - RSI starting to structure up as price beings to squeeze. - MACD crossed to the upside with plenty of room to move. - Recent move closed above middle Bollinger Band.
Risk management; This trade would be a very small position due to the risk of low satt coins. Also there are large wicks in both directions that could potentially stop you out of a position easily. To help offset this risk I would be moving stops to break even if we reach Take Profit level 1.
Time frame; Due to the low volume of this coin and judging based of past moves, if a trade presented itself here on a breakout, I would expect it to take approximately 35 days. This is not a short term trade.