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(DYDX/USDT on the 1D timeframe), here’s a technical analysis for a potential short-term trade setup:
Market Context:
The price is in a clear downtrend, forming lower highs and lower lows.
It recently broke below the support zone (purple box ~0.555–0.565), indicating bearish momentum.
The candle is currently retesting the broken support as potential new resistance (a classic bearish confirmation).
Possible Trade Setup (Short Bias):
Entry (Sell/Short):
Around $0.555 - $0.560
Wait for bearish confirmation at this level (e.g., a bearish engulfing or rejection wick on lower timeframes like 4H).
Take Profit (TP) Levels:
1. TP1: $0.520 (next minor support)
2. TP2: $0.480 (stronger support)
3. TP3: $0.420 (final support level in the zone)
Stop Loss (SL):
Above the broken structure: $0.575 - $0.580
To avoid fakeouts, place SL slightly above the wick highs of the last few red candles.
Risk-Reward Example (RR):
Entry: 0.555
SL: 0.580 (25 pips risk)
TP1: 0.520 (35 pips gain) → RR ≈ 1.4
TP2: 0.480 (75 pips gain) → RR = 3
TP3: 0.420 (135 pips gain) → RR = 5