SOL Analysis Deep Dive: Identifying Optimal Entry and Exit Zones
Yesterday, SOL gave a sharp downside shakeout, dropping from the weekly open at $147.98 (perfectly retested) down to the 0.5 Fib retracement of the swing at $140.25. Here’s a structured breakdown of the key levels, trade setups, and R:R profiles for both longs and shorts:
🔑 Key Levels & Confluences
1. Higher-Timeframe Opens
2. Fibonacci Support Zones
3. Order Block
4. Volume-Weighted Average Price
5. Market Profile Value Areas (10-Day Range)
📈 Long Trade Setups
1. 0.5/0.786 Fib + Daily Bullish Order Block
2. Higher-Timeframe Open Cluster
• Why these levels? The 0.5 Fib is a classic mean-reversion zone, bolstered by the daily order block. The $147–146 zone ties together multiple opens (weekly, monthly, prior-day), offering a solid demand area if price retraces back up.
📉 Short Trade Setup
• Low-risk short: A clean rejection at the recent high lets you define risk tightly above the swing, aiming to capture the retrace back to the opens.
🎯 Summary & Game Plan
Now it’s a waiting game! Let price revisit these zones, watch for confirmation signals, and then scale into your chosen side. Good luck! Don't chase, let the charts come to you!
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🔑 Key Levels & Confluences
1. Higher-Timeframe Opens
- Weekly Open & Retest: $147.98 – pivoted price before the drop
- Monthly & Prior-Day Open Cluster: $147.98–$146.31 – strong support confluence zone
2. Fibonacci Support Zones
- 0.5 Fib at $140.25 – primary mean-reversion entry
- 0.786 Fib (smaller wave) at $138.78 – secondary, deeper support
3. Order Block
- Daily Bullish Order Block at $139.87 – just below 0.5 Fib, adds extra support
4. Volume-Weighted Average Price
- Anchored VWAP (from ATH $295.83) at ~$166.45 – key upside resistance
5. Market Profile Value Areas (10-Day Range)
- Value Area High (VAH) at ~$153.00 – overhead resistance confluence
- Value Area Low (VAL) at ~$145.75 – underpins support
📈 Long Trade Setups
1. 0.5/0.786 Fib + Daily Bullish Order Block
- Entry: $141-138.78
- Stop-Loss: $137.5
- Target: $165 (anchored VWAP / Fib zones)
- R:R ≈ 9:1
2. Higher-Timeframe Open Cluster
- Entry Zone: $147.98–$146.31(monthly/weekly open)
- Stop-Loss: $142.5
- Target: $165
- R:R ≈ 3:1
• Why these levels? The 0.5 Fib is a classic mean-reversion zone, bolstered by the daily order block. The $147–146 zone ties together multiple opens (weekly, monthly, prior-day), offering a solid demand area if price retraces back up.
📉 Short Trade Setup
- Trigger: Rejection / swing-failure around $153.4
- Entry: $153.4
- Stop-Loss: $154.3
- Target: Weekly/Monthly open (~$147)
- R:R ≈ 6:1
• Low-risk short: A clean rejection at the recent high lets you define risk tightly above the swing, aiming to capture the retrace back to the opens.
🎯 Summary & Game Plan
- Primary bias: Look for long entries at the 0.5 Fib ($140.25) or the open-cluster zone ($147–146), with targets toward the anchored VWAP at ~$166.
- Alternate bias: A short on clear rejection from $153.4, targeting the opens as support.
- Risk management: Keep stops tight (SL below $137.5 or above $154.3) to maximize R:R on your favored setups.
- Volume & Price Action: Confirm entries with an uptick in volume or bullish price structure (for longs) or swift failure patterns (for shorts).
Now it’s a waiting game! Let price revisit these zones, watch for confirmation signals, and then scale into your chosen side. Good luck! Don't chase, let the charts come to you!
____________________________________
If you found this helpful, leave a like and comment below! Got requests for the next technical analysis? Let me know.
Trade active
🚨 SOL Update:Price just rejected after briefly clearing the swing high at $153.40, printing a swing-failure short setup. That trade played out perfectly. Low-risk, high-probability trade setup. That is what we are looking for.
Earlier today, we saw another low‑risk short when SOL rose into the golden pocket of the latest down‑wave. On the chart below, I’ve highlighted both golden pockets to watch closely:
Primary Short Target: Weekly Open & Monthly Open ($148.00- $147)
• Look for a reaction. Will bulls defend here?
Secondary Support Zone: Golden Pocket at $145.54–$144.89
• Deeper correction level to keep an eye on if the monthly open doesn't hold as support.
Let price action guide your entries. Happy trading =)
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🏆 Mastering Fibonacci for precision trading
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
🔹 Sharing high-probability trade setups
⚡ Unlock the power of technical analysis!
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.