Hi Traders! Ripple short term forecast and technical analysis is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available! Now, let’s start our analysis from the highest timeframe which will be the daily chart here.
On the daily chart, the price which was moving lower reached a key support zone respected it and bounced higher from this zone. This key support zone is formed by the 100%(0.44084) Fibonacci expansion level of the first wave and the 61.8%(0.41731) Fibonacci expansion level of the second wave. Also, we could see that the price which was moving lower has created a bullish hidden divergence between the first low that has formed at 0.34832 and the second low that has formed at 0.44024 followed by a continuing bullish divergence between the first low that formed at 0.44024 and the second low that has formed at 0.40992 based on the MACD indicator, which we may consider as evidence of bullish pressure. In addition to this, based on the Parabolic Sar we could see that the dot is below the price which we may consider as yet another evidence of bullish pressure. Also, currently, there are no signs opposing this short term bullish view. So everything looks good here for the bulls and we may now move down to lower timeframe and look for evidence supporting this short-term bullish view.
On the H1 chart, we have a bullish rally and currently, it looks like this bullish rally is about to continue. Based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward-moving market conditions so it basically reflects a bullish environment. Also, we could see that the price which was moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. Currently it looks like a pullback is happening and based on the Stochastic Oscillator we could see that the price has reached it’s extreme, which we may consider as yet another evidence of bullish pressure. In addition to this, currently, there are no signs opposing this bullish view here as well. Also, we had two strong resistance zones and the price which was moving higher has broken above these zones and is holding above them. After the breakout, these strong resistance zones are acting as strong support zones for us. So based on all this, until these two strong support zones shown in the image below(marked in green) holds my short-term view remains bullish here and I expect the price to move higher further after pullbacks.
Ripple D1(Daily) Chart Analysis
Ripple H1(1 Hour) Chart Analysis
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short-term buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Happy Trading!
Arvinth Akash
Home Trader Club Team
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