I took a look at ADA's 2-hour chart, and it has already formed a quite clear head and shoulders bottom pattern. Why is it bullish? The key point is the obvious liquidity gap around 0.40 above (Inefficient wick), and the market usually has a drive to fill such gaps.



However, chasing the current price is a bit hasty. My idea is to wait for a pullback, and wait until the right shoulder support is confirmed to be effective before taking action, which is more prudent.

The specific plan is as follows:

The entry for a long position is around 0.345, with a stop-loss set at 0.328. Once the previous low is broken, it indicates that the entire structure has failed, and there's no need to hold on stubbornly.

The target is divided into two steps: first at 0.385, and the final goal is to fill the gap at 0.40. The risk-reward ratio looks pretty good, and this opportunity is still somewhat interesting.
ADA6.79%
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digital_archaeologistvip
· 2h ago
The head and shoulders bottom theory has been heard quite a bit, but whether it can really fill the 0.40 gap remains to be seen. It's a bit rushed to chase in now. I think your approach is quite solid, but isn't the 0.328 stop-loss point a bit tight?
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SilentAlphavip
· 2h ago
Head and shoulders bottom pattern I've seen quite a few times, but there are very few that actually break the level. Whether this ADA can be different depends on... Wait for the pullback before going up again. Smart traders know that chasing high will get you cut again. Once the 0.40 gap is filled, it's time to exit. Don't be too greedy; ADA has too many tricks.
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SatsStackingvip
· 2h ago
The head and shoulders bottom explanation has been heard too many times, but this time the 0.40 gap is indeed interesting. It's better to wait for the right shoulder confirmation before entering; don't rush.
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wrekt_but_learningvip
· 2h ago
Head and shoulders bottom is indeed beautiful, but we have to wait for the 0.345 entry point, don't rush... --- How many times have I said that the gap needs to be filled? In the end, it was broken through, but this time the pattern is quite clear. --- Profit and loss ratio is a joke; a stop loss at 0.328 can't really prevent losses. --- Is ADA still playing this kind of pattern? Should have switched to another one long ago... --- Waiting for confirmation of right shoulder support? Probably won't get it, haha. --- I also saw the gap at 0.40, but I don't believe the market will be so obedient to fill it. --- It's a bit early to chase now, but there are definitely some opportunities. --- This liquidity gap in the order book... can it be filled this time? It has been filled a few times before. --- With such tight stop losses, it feels easy to get smashed.
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LiquidityHuntervip
· 2h ago
Head and shoulders bottom has some substance, but I'm just worried it might be a fake-out again. Let's wait for the pullback to confirm before saying anything.
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AirdropChaservip
· 2h ago
Head and shoulders bottom, I've seen it thousands of times. This time, I'm not sure if I can fill that gap. Wait, 0.345 entry with a stop loss at 0.328? That's a bit tight; this level is easy to be shaken out. A good risk-reward ratio doesn't necessarily mean you'll make money; the key is execution. But your approach is still more cautious, much better than those chasing highs. Waiting for a pullback confirmation before acting is indeed more reliable. That's what I think too.
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