Taking a look at the ETH/BTC 4 hour chart the is shaping up for higher prices. If we take a look at the red line (the POC or point of control/price with the highest ) it shows us that there was ALOT of trading interest around 0.06; the most of this swing on the 4hr. Then given the downside off that price we can conclude that the herd was long and is now getting blown out. This is confirmed with the POC staying high for an extended period of time. Now we are consolidating and the POC has come down. This is a terrific potential setup for a good bounce... but not good enough for me to pull the trigger just yet.
So what am I waiting for?
Order flow... if we see price break higher out of this consolidation with offers being pounded on... a long side trade would be actionable for me and my risk parameters. But only after order flow confirms a squeeze.