Cardano (ADAUSD) $0.02/3-box Reversal Chart
Above: Cardano (ADAUSD) Chart
Cardano’s current Point and Figure chart shows a bullish breakout above a double top at 1.74. The long entry signal itself is not a strong one and I would not have taken it – but we could see a very nice short opportunity if a new column of Os forms. If a new column of Os does form and if in that same column the sell stop is triggered, we will have a confirmed Bull Trap pattern. The Bull Trap pattern on a Point and Figure chart occurs when the prior column of Xs created a long entry, but then reversed into a new column of Os that generated a sell entry. Utilizing the vertical profit target method in Point and Figure, the profit target from the sell stop entry is at 1.32, with a stop at 1.70.
Polygon (MATICUSD) $0.05/3-box Reversal Chart
Above: Polygon (MATIC) Chart
Polygon’s Point & Figure chart show’s a ridiculously textbook example of a head and shoulders pattern. The break of the neckline as an entry would occur at 1.50, with a profit target at 0.98. The actual target is 0.90, but 0.98 is the powerful 88.6 Fibonacci Retracement from the all-time high to the confirmation higher low at 0.80. Additionally, 0.98 places the profit target between the 100% and 127.2% Fibonacci Extensions. I did not add a long entry option because the profit target is only two boxes above the entry.
Ethereum (ETHUSD) $100/3-box Reversal Chart
Above: Ethereum (ETHUSD) Chart
Ethereum’s chart looks like the inverse of Polygon’s chart above. For Ethereum, there’s a massively difficult level to break above and remain above in order for a sustained move higher to occur. The psychological price level of 3000 is the current entry level – and that entry only comes after Ethereum breaks a split quintuple top – that’s rare. However, even thought the quintuple top is a rare but extremely bullish Point and Figure pattern, the profit target is very limited: 3700. But we could see traders push it higher towards the 3926 level, which is the 88.6 Fibonacci Retracement of the current swing low to the confirmation lower high.
Doge Coin (DOGEUSD) $0.01/3-box Reversal Chart
Above: Doge Coin (DOGEUSD) Chart
Doge’s chart is filled with possibilities. The two blue trend lines form a descending triangle – one of the most bearish patterns in technical analysis. For Doge bulls, there’s a buy stop entry at 0.45 which is a break of a triple top – very bullish. Now, the actual profit target is limited if we use the vertical profit target method, but this is Doge. I am using the 161.8% Fibonacci Extension at 0.60 as a profit target for the long entry. For Doge bears, it’s a little more risky, but theoretically more profit. There is a clear test of the breakout from the descending triangle and at the time of this article, it appears to be holding. If this retest is a fake-out then it’s one heck of a massive bull trap. The trap would be miserable for bulls because price would re-enter the triangle and then breakout below the pattern, causing a cascade of fear amongst bulls and joy among bears. The sell stop entry is at 0.34 with a profit target at 0.11.