TradeCityPro | CFXUSDT Analysis: Don’t Fear the Red Candles!👋 Welcome to TradeCityPro Channel!
Let’s dive into the first day of the week where we’ve seen red candles and minor corrections. This is a good time to review our coins and prepare our triggers.
🌍 Market Overview
Before analyzing CFX, let’s take a quick look at Bitcoin. It faced a strong rejection at 100,400 and printed a significant red candle. But what should we do in such cases? For now, nothing. The trend remains bullish, and Bitcoin dominance is also correcting.
If Bitcoin’s dominance continues to drop and forms a lower high on the daily timeframe while the market remains bullish, keep an eye on the charts for potential altcoin entries. This scenario could signal the start of a bull run.
🕒 Weekly Time Frame
CFX stands out as an older coin with prior bull-run experience. It’s trading above last year’s lows and hasn’t experienced steep declines.
Yesterday, we analyzed this coin briefly, but today, we’ll go into more detail. Unlike most altcoins that began their bullish moves from their lowest levels, CFX has already started its upward trajectory from 0.1219.
Fibonacci analysis shows that 0.1219 aligns with the 50% retracement level—a significant support both in Fibonacci terms and Dow Theory. After forming a range around this level and breaking the 0.1810 trigger, the coin moved toward its first target at 0.2596.
For further targets, use Fibonacci extensions from the same 0.5 range. Once 0.5171 is broken, potential targets include 0.7385, 1.21, and 2.26.
If you entered at 0.181, holding your position is advised. For re-entry, consider buying after the 0.2596 breakout with a stop-loss at 0.1219. RSI confirmation above 76.18 would also validate the entry.
📊 Daily Time Frame
On the daily chart, CFX was in a ranging box, forming higher lows. A breakout above 0.1851 was accompanied by a strong entry candle with buyer momentum, an RSI entry signal, and volume confirmation. Stop-loss was set at the daily low of 0.14.
If you followed this trigger, you’re likely in profit despite the current red daily candle. This correction is healthy, as an uptrend without pullbacks or red candles is often unsustainable.
For re-entry, consider buying after the 0.2596 breakout with a stop-loss at 0.14. Alternatively, a pullback to 0.1851 with confirmation from a bullish candle could also provide a good entry point.
🕒 4-Hour Time Frame
Let’s discuss how you could have entered positions earlier. After the 0.1905 breakout, a bullish engulfing candle (covering the prior two candles) marked the entry trigger. The stop-loss was set below the previous low, ensuring a secure long position with a good risk-reward ratio.
But would you really use a 14% stop-loss in futures trading? Yes, in volatile conditions like this, a larger stop-loss ensures safety and increases win rates. It’s better to risk 1% with higher win rates than repeatedly hit small stop-losses, which could harm your trading psychology.
📈 Long Position Trigger
wait for the 0.2596 breakout or RSI returning to its range, coupled with momentum confirmation in lower timeframes.
In bullish markets, an RSI recovery from oversold levels and breaking above 30 can also serve as an early long trigger.
📉 Short Position Trigger
For shorts, I still advise against them. For example, shorting the 0.2412 breakdown with a stop-loss at 0.2596 would’ve only offered a 1:1 risk-reward ratio, going against the primary trend.
💡 BTC Pair Insight
Against Bitcoin, CFX has held its 0.00000164 support and found strength. After breaking the 0.00000294 trigger, the coin is expected to deliver its main moves in the USDT pair. If the market remains bullish, CFX could showcase significant upward momentum.
📝 Final Thoughts
Stay calm, trade wisely, and let's capture the market's best opportunities!
This analysis reflects our opinions and is not financial advice.
Share your thoughts in the comments, and don’t forget to share this analysis with your friends! ❤️
