$AAVE Rebounds from September Low on Heavy Volume
AAVE swept its September low on the heaviest daily volume in weeks and closed near the top of that candle. The next session saw similar volumes, but this time, the price bounced back up.
The author is long AAVE, but notes that buying at the top of the move doesn't meet their reward-to-risk rule. Instead, they've placed a resting limit order to buy during the retracement.
The 12-hour mid-term moving average and the 4-hour buy-side order block are aligned near the low price. The sell-off leg's midpoint and the shallow retracement of the bounce also land in this area.
On a divergence, the RSI held flat while the momentum histogram got shallower during the low. Sellers pushed harder but got less for it, and the 4-hour histogram has since improved nine bars straight through zero.