Eidoo shows a repetitive pattern lately. On the 4H chart, we see the price moving in an ascending channel. The chart shows a linear regression line ( dotted white line) and the ± 2, 3, and 4 sigma deviations from the mean line. We see that the price has settled art about the -2 sigma line, which acts as support. We also see repetitive episodes of the price visiting regions beyond the +2 Sigma line with strength. This time, we consider we can create a bullish setup that could create a good reward/risk factor. The idea is to enter a long position when the price breaks above the 0.00002169 line, with a profit-taking target at 0.00002500, which is near the +2 sigma line, and a stop-loss level of 0.00002022, which is below the recent lows and also below the -2 sigma line, for a reward factor over 2 and a trend-following strategy of buying the pullback.
The main trend is clearly upwards because the linear regression line has a positive slope. Also, the RSI is now moving upwards, and in the middle of the range, so no overbought condition happens. Finally, if the price breaks above the planned entry level, it will move above its 50-period SMA. So the setup is well lined up with the trend. Finally, the overall market moves also with an upward bias, so all conditions are good for a short-term setup. Aggressive traders may consider taking 2 or 3 target levels at +2, +3, and +4 sigma lines.
Key levels:
Entry: 0.00002169
Stop-loss: 0.0000202
Take-Profit: 0.00002500