Here's a retrospective on how I could have traded the recent ETH price action.
The ADL profit factor for longs on the 1hr chart is around 6.9, which is very high. That gave a good reason to take a long position on 21 June around $269.
Next, to time the exit, look at EMAs, SMAs, and the Tom Demark indicator. Even though ADL didn't give a close long signal at the top (26 June), given the parabolic price rise, with 9/21 EMAs stretched out far above the 50/128/200 SMAs, common sense says that one should take some profits.
Remember, trying to time stop loss hunts is like playing chicken.
Finally, the ADL close long signal around $290 would have given profits as well.
The ADL profit factor for longs on the 1hr chart is around 6.9, which is very high. That gave a good reason to take a long position on 21 June around $269.
Next, to time the exit, look at EMAs, SMAs, and the Tom Demark indicator. Even though ADL didn't give a close long signal at the top (26 June), given the parabolic price rise, with 9/21 EMAs stretched out far above the 50/128/200 SMAs, common sense says that one should take some profits.
Remember, trying to time stop loss hunts is like playing chicken.
Finally, the ADL close long signal around $290 would have given profits as well.