From TradingView · · 1m 20s
Why TAO is the AI trade on my chart
A trader lays out a long setup on TAO, built on a Fibonacci retracement and one clear first target.
In brief
A trader lays out a long setup on TAO, built on a Fibonacci retracement and one clear first target. The setup is simple: treat the 0.618 pullback as the entry zone and the Value Area High as the first place to take money off the table. Originally reported by TradingView.
TAO as the AI bellwether
The call starts with a ranking, not a chart pattern. TAO is named the leading AI token in crypto right now, which is why it gets the attention.
“I am considering the TAO as the major AI leader in current crypto Market”
A long on the perp
The position is a long on TAOUSDT perpetual futures on Binance, posted 13 hours before the chart was shared.
Impulse, then correction
Price moved up in an impulse leg and is now working through the corrective leg back down. That two-part structure is the whole basis for the entry.
“price action is showing the on Impulse and corrective movement”
The 0.618 is the line
The correction runs into the 0.618 Fibonacci retracement of the impulse. That level is where the trader wants to be a buyer.
Optimal trade entry
In this trader's language the 0.618 area is the OTE, the spot where reward against risk looks best before the trend resumes.
“So, it is the OTE for me”
First stop: Value Area High
Profit target one is the Value Area High, the upper edge of where most volume traded. Calling it the first target implies more above it.
“to the Value Area High as the first Target”
The main idea
The setup is simple: treat the 0.618 pullback as the entry zone and the Value Area High as the first place to take money off the table.
