The price has kept moving lower for a prolonged period of time (almost 20 days) at a very constant and sustained pace.
This alone indicates that we should get an uptrend, or at least a retracement, soon.
Moreover, once we add some of our best TradingView indicators on the chart we quickly realize that we might have a very great opportunity.
At least, we have the setup because:
- There is a significant divergence between the price, which is falling, and the RSI Exhaustion, which is rising
- The RSI Exhaustion is bearish exhausted, which means that the price doesn’t have much room to move any lower
- We have a confirmed bottom
Since these three key conditions are met, we place our trade by setting the stop loss a bit lower than the most recent lowest price level, and the target all the way up to where the current downtrend started because a similar downward movement is not sustainable and, if we expect the price to move higher, then it is very likely that it will come, at least, all the way up to where it started.