A Reversal Setup for BNXUSDTFollowing large selling pressure during the beginning of the trading session, we see a volume spike at the bottom of the range and indication of a trend reversal into key moving averages which I will be using as profit targets.
The volume spike is a key indication of the end of a trend, it provides confirmation that the short-sellers are either covering in this zone (buying pressure) or that a whale has just entered into their long term position (buying pressure.)
Using fibonacci and S/R, we can map out a clear profit target back towards $1 - I'm choosing 0.89 conservatively.
Risk = 5%, reward = 27%
Ratio = 5/1
These are the exact setups that provide high Reward for risk and clear confirmation from the volume spikes. Backtested results show 70-75% success.
Expectancy = 3.75
