Scalp Peak Formation on ETH

ScalpWthMe Updated   
BINANCE:ETHBUSD   Ethereum / Binance USD
Ethereum has risen above 1300 which is a key whole number. We will see a lot of manipulation in this zone and we can try to take advantage of it. Many traders will have placed orders to go long whenever the price of Ethereum goes above 1300. Those orders have now been triggered, traders will likely get trapped and they will not be released for quite some time. This presents us with an opportunity to scalp the formation of a double or triple top in this area.

I believe this is the peak of level 2 on the 4hr chart and level 6 on the 1hr chart (wave 2 and wave 6 if you prefer). The market maker algorithm usually only paints 3 levels on the 1hr chart so that's why I am confident that they will now go into a peak formation. We have no way of knowing how long this will take, so I won't waste my time trying to predict the timing - it's enough to have an understanding of what is likely to happen and prepare accordingly.

If you are in agreement with my idea then you can trade the drop of the first leg down. The yellow lines on my chart are levels where they may potentially bounce and start the first leg up. If they are not yet done with this very strong push higher then price may not even drop as low as my first yellow line so please be prepared for that scenario.

We know that the market maker algorithm uses mean reversion and that is basically what we are trading here. Price would normally come back to the 50 MA on the 1 hour chart but after such a strong move up I would expect mean reversion to take price below the 50MA, below the 100MA and probably all the way to the 200MA. Keep an eye on those moving averages for potential bounces and I will update this idea as things progress. If it is too early for mean reversion then we can re-evaluate this idea after the next leg up.
So they decided to take ETH higher and even though my chart is no longer valid, the idea of trading the peak formation remains valid. We are getting close to the New York open and I expect the volatility to continue. As always, it's best to wait until after the first hour of the open before making any decisions as to whether or not to enter a trade. Enjoy profiting from your longs in the meantime ;-)
OK, so it looks like we got our top and we've seen a drop. They are currently painting a head and shoulders on the 1hr chart which will entice more traders to go short here. They may indeed continue down, but this also may be a trap - so pay close attention to what happens over the next few hours.
This is where the 50MA bounce traders on the 1 hour chart will go long. I expect price to go lower towards the 200MA on the 1hr to complete the 1st leg of this peak formation. We can safely go long from the 200MA and profit from the 1st leg back up to the peak. From there we have an important decision to make - one that we have to make all the time. Will they drop and start to form a triple top or will they simply continue higher?

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