Hi everyone,
Following my discussion with ExpertTrader21, I wanted to share my bullish trend continuation thesis as an alternative perspective to his bearish outlook. As I mentioned under his trade idea, I see ADBE (Adobe) as both a short-term and a long-term bullish play.
1. Short-Term Trade Setup:Risk-to-Reward (RR): I've set up a short-term 3:1 RR ratio from the current price, targeting the previous swing high.Fib Extension Target: An even higher RR can be achieved by using the Fibonacci extension to project a potential Higher High at 324.7
2. High Timeframe (HTF) Framework:Pitchfork Analysis: Some of the lines on my chart belong to a high timeframe Pitchfork. You can clearly see how the price bounced perfectly off the lower boundary of the Pitchfork and has started its mean reversion process toward the median line.HTF AVWAP: I have anchored a second AVWAP on the higher timeframe (the red line). This serves as my macro target for a long-term position in Adobe at around $400, which nicely aligns with the Pitchfork's median line.
3. Daily Chart Confluences:Market Structure: The daily chart shows a clear Market Structure Shift, now forming Higher Highs and Higher Lows.Divergences &...