BITFINEX:ETHBTC   Ethereum / Bitcoin

This is good for beginners and even the experienced trader!

Don’t buy the dummy, Don’t be the dummy as BITFINEX ETH/BTC volume drops.

The chart shows a nice uptrend with price back and testing the 20 day moving average. In most circumstances a clear buy opportunity but there are a couple of warning signs for the inexperienced trader here.

1/ Note the consistent drop of volume , the lower the volume the more likely false break outs caused by a small number of market participants having more influence than they do in higher volume markets.

2/ Our Triangle is a perfect indecision shape and shows a market not clear whats next (Many BTC Charts showing uncertainty, we will clear this up in another post). Triangles often break about 2/3 of the way in so we arewell due a break out.

3/ While our trend is up we have entered the triangle from above and this makes a case for the breakout to be short, we have a long trend so an unclear picture.

The 3 points above make this market not clear for us, and we need to be cautious.

There is a break out not far away, I will stay out of the first leg in case the low volume creates a False breakout and traps traders on the wrong side of the market.
I will wait for a pullback (preferably to the triangle), and a bounce back in the direction of the first move. I am looking for a simple ABC (Price Advances, comes Back, Continues in the original direction), combined with a rise in Volume .

Long is my bias but I will let price lead me in either direction here. If I get my scenario in either direction I will be prepared to trade in that direction.

By staying out of the first leg of the move I do risk missing the move, but I also miss the high probability of a false break and losses. I hate losses.

Remember to make Dollars your decisions need to make Sense, stay calm and focused in these markets and plenty of good trades will come.

Feel free to follow me for not only analysis but I will be posting profitable trade ideas! Short, Mid & Long!
Comment: We have just seen ETH test the bottom of triangle now and bounced back.
Comment: We have seen the expected break out now we must wait for an entry point.
Comment: Volume is moving but we still have to be patient for the set up to be certain.
Comment: This idea remains valid as we wait and see if we get a retest of a support area like the triangle. We will advise.Some of you may have found the ABC on a 4H or H chart and already be in the profits. If you are let us know which Tf and i will post targets
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big dump. are we out?
Awesome analysis! Is this a time where one night consider getting in? I'm currently in ETC at $28.
We have just seen ETH test the bottom of triangle now and bounced back.
This looks to be timed really well with another drop in BTC.
This break is also on the support, and could potentially be the end of Wave 2
What do you think?
xena2000 xena2000
Not sure how to post my own chart in the comments?
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