Ethereum is showing bullish signals for a break out upwards in the following hours/days.
On the daily chart,The 20 period Moving average is above the 200 period Moving average, bullish signal. We are looking for a BUY position.
20 MA is close to the 200 Ma in a narrow state, ready to expand. Healthy bullish signal and ideal entry point. We play the color game, looking for a green takes out red entry point near the 20period moving average.
On the daily chart with 20Ma, 200Ma and Bollinger bands we see a large red tail bar representing the friday 16/10/20 sell off (which could be expected as we had exited Bollinger bands on the 12/10/20, triggering profit taking and downward pressure). The fall was rejected at the 20MA and bounced upwards. The 20Ma on the daily chart has turned from Resistance to support. Bullish signal. We have a potential entry point: Buy ethereum right above the red tail bar, stop loss below that red tail bar.
To reduce our risk and narrow our entry point and stop loss we look at the 4 hour chart, we see the friday sell off was rejected at the 200Ma, we bounced up past the 20Ma and now the 20MA acted as support. We have a green takes out red entry point near the 20 Ma. This is the narrowed down entry signal.
How to trade the potential breakout with asymmetric risk reward: Buy ethereum right above the red bar at 373usd, stop loss at 368 (right below the red bar on the 4 hour chart).
On the daily chart,The 20 period Moving average is above the 200 period Moving average, bullish signal. We are looking for a BUY position.
20 MA is close to the 200 Ma in a narrow state, ready to expand. Healthy bullish signal and ideal entry point. We play the color game, looking for a green takes out red entry point near the 20period moving average.
On the daily chart with 20Ma, 200Ma and Bollinger bands we see a large red tail bar representing the friday 16/10/20 sell off (which could be expected as we had exited Bollinger bands on the 12/10/20, triggering profit taking and downward pressure). The fall was rejected at the 20MA and bounced upwards. The 20Ma on the daily chart has turned from Resistance to support. Bullish signal. We have a potential entry point: Buy ethereum right above the red tail bar, stop loss below that red tail bar.
To reduce our risk and narrow our entry point and stop loss we look at the 4 hour chart, we see the friday sell off was rejected at the 200Ma, we bounced up past the 20Ma and now the 20MA acted as support. We have a green takes out red entry point near the 20 Ma. This is the narrowed down entry signal.
How to trade the potential breakout with asymmetric risk reward: Buy ethereum right above the red bar at 373usd, stop loss at 368 (right below the red bar on the 4 hour chart).