ETHEREUM CLASSIC CRYPTO REVERSAL STRATEGY

Step #1: Identify a clear trading range zone followed by a breakout above the resistance level.
The principal idea behind the Fakeout – Shakeout reversal pattern is that we’re looking for an area of consolidation or range trading followed by a false breakout that is QUICKLY sold by the institutional money.
A trading range is defined by price moving back and forth between clear support and resistance levels.
A valid Fakeout only needs enough bullish momentum so we can break above the trading range.
Step #2: Identify the starting point of the Fakeout movement.
What we’re looking to do next is to just wait for the buy off to fail.
The way we’re going to know that this is a false breakout is if the market starts recovering and breaking below the starting point of the buy-off.
Simply, mark on the Ethereum Classic chart the bullish candle that started the buy off. It doesn’t necessarily have to be the first bullish candle. What we look for is for the most prominent bullish candle within the upward movement.
The critical thing to watch is for the Ethereum Classic price to recover fast and not spend too much time on the upside.
Note* The stronger and faster the recovery happens, the stronger the reversal pattern becomes.
A legitimate breakout should not retrace so deep. If it does, according to our amazing reversal pattern, it signals that this was a false breakout and a bull trap.
The Fakeout – Shakeout reversal pattern satisfies both of our trading conditions which mean that we can move forward and outline what the trigger condition for our Ethereum classic cryptocurrency strategy.
Step #3: Place a sell stop order below the candle’s high identified at Step #2
The best entry technique to use when purchasing Ethereum Classic is to closely monitor the charts right when the expected reversal is occurring. You must focus first on identifying the starting point of the fakeout movement.
The fakeout movement is designed to fool traders into believing the market will go up when the real intention of the smart money is to really move the market down.
This type of fakeouts happens all the time in any market and on all time frames.
This entry strategy has only a very small window of opportunity, so you want to make sure you’re ready to pull the trigger when the trade signals show up.
We refer to this recovery as the Shakeout phase. The buyers who got caught on the wrong foot and got tricked are about to be taken out, which in turn will fuel more the downside.
Step #4: Place your protective Stop Loss above the “Fakeout high”
You also need to concentrate on seeing the logical places where to hide your protective stop loss.
Trading without a stop loss is a receipt for disaster, so always use an SL.
The initial stop loss is placed at the swing high developed during the Fakeout – Shakeout phase.
Step #5: Take Profits when the bearish momentum fades away
The easiest way to take profits is to wait until the rally starts losing the bearish momentum.
The simplest way to gauge when the bearish momentum fades away, is when the price either starts to consolidate again or when big bold bullish candle start to develop on the Ethereum Classic chart.
Alternatively, you can trail your stop loss and enjoy the opportunity to potentially make bigger cryptocurrency profits. You have to monitor new swing high points as they are formed and then just trail your protective stop loss above these swing points.
Note** the above was an example of a SELL trade using the Ethereum Classic beginner’s guide. Use the same rules for a BUY trade – but in reverse.
PM me if you want to read the complete strategy.

Comment:

I think this engulfing bullish candle and the 61.8% fib are where my exit is.