I have been watching ETH to place a position as I missed this train. It's no mystery where ETH started to retrace/correct. I have numbered my fibs in order to explain my methodology. FIB #1 was from the swing low to the swing high - first leg or move or wave. I am looking for an extension of this wave to see where price will falter. Price just pierced through the 127% but it's a near perfect touch before the Bears said oversold we are taking our profits and hibernating for a while. FIB#2 is of the entire move from the previous swing low to the ATH. This gives me retracement levels or corrections.I am looking at the 50% or the 38.2% for a long term position on Ethereum. FIB # 3 is a fib of the FIRST corrective wave after the move swing. The extension of this fib 127%, 161% %+& often 200% in Cryptos gives me an idea for a trade set up. Then I look at overlapping areas or fib levels, support and resistance, orderflow = confluence that occurs on the chart, and there it is. I have an area of upward support a 127% extension, a 0.50% (mean reversion) and a 0.618% within an area that I will trade. I will watch what happens on a smaller time frame to confirm my plan, watching for a reversal candle pattern, a 1-2-3 price action to mitigate my risk. It simply stacks the odds on my side to take the trade and feel confident that I am following a plan. Without a plan you will erode your bank account and more importantly your confidence. You cannot buy confidence it is built day by day from trading your plan and being successful. Being a confident trader if you are new is all you should be focussing on - not the money.
Trade closed: target reached
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We had a reaction to the support line price turned from bearish to bullish - now its just a wait and see why who will win as price has reacted to the first level of resistance.