Huge Trading Volume Gap on ETH/BTC

Something really interesting is happening here on ETHBTC from a technical point of view. If you look closely at the levels most traded we can see that there is an enormous gap between the 0.235 and the 0.256 range. The price has surged through this area every time it was there. The more slowly traded levels are directly below and directly above this level.

We can use this knowledge to increase the risk reward of our trades. Knowing that if the price breaks through the resistance at around 0.235 the price is likely to go up by at least 8.60%, we can place our stop loss tightly below the zone of resistance and get a maximum benefit in case the scenario plays out right.

Remember that in trading you don't have to be right more than 50% of the times if your risk reward is better than 1:1. In here you could trade it with a RR of 1:5, which means you only need to be right more than 20% of the times.

Also check out my other chart on ETH USD:

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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!