ICP trading setup idea
2024-03-06

Weekly: long term analysis 

 BINANCE:ICPUSDT  defined an All Time Low (ATL) at the 3$ level.
After that low, ICP witnessed a very strong momentum upward with incredible volumes. It is now consolidating for several weeks at the current price level. Let's analyze it in a lower time frame to plan an entry.

 Daily: short term analysis 

  

Since the ATL, ICP had a very bullish momentum with huge volumes. 

After a period of consolidation under a very clear resistance level and a contracting volatility (see narrow Bollinger Bands), ICP is now attempting to break out of this resistance level with an increase in volumes. 

If breakout is confirmed, all ingredients for a powerful upward movement and a good trading setup will be gathered.

 Strategy 

Buy signal will be given on a daily close above the horizontal resistance line at 14,75$.
 
 Objective 1: Nearest resistance line at 23,50$ (+60%)
 Objective 2: Next resistance at 39$ (+160%)
 Objective 3: First wave target and next resistance at 82$ (+500%)
 

 Invalidation  

Mental Stop: just below the last consolidation low at 12$. This setup proposes a nice Risk Reward
If prices retrace to this stop level we will wait for the weekly closing price then set a Stop loss ¼ or Risk below the weekly close price.
Risk = Distance between Mental stop and entry point.

