BITFINEX:ETHUSD   Ethereum / U.S. Dollar
In the game of trading there is are two extremely important skills that a trader must have in order to become profitable and those maintaining a level headed and patience. Patience is truly a virtue in the game of trading as some patterns in price action may take days, weeks, or in Etherums case an entire month of grueling sideways and converging price action. New traders tend to get washed up in these patterns as they suspect a break to made when it turns out to be another correction within the larger pattern itself. Experienced traders either sit sidelines until a clear break is made or if they are day traders/scalpers they may play the patterns range. But as this sideways actions played out price action began to converge that left R:R unfavorable with minimal gains and possibly unlimited losses. Unlimited due to the fact that the action that will result from a months long triangle will be violent and will possibly cause slippage within exchanges skipping stops. Due to this fact many traders are beginning to sit sidelines and that is very apparent looking at the charts.
Taking a deeper look at the chart i cannot ignore other factors that are very bearish . One is the declining volume which is always paired to these formations and usually results in PA of the same degree of the previous move. Other factors lie within the RSI that is showing obvious signs of bearish divergence across many points, shown in red and white. We also notice the STOCH beginning to run away without PA which is creating bearish divergence as well.
The safest bet is to wait for the break to enter the trade but many signs are pointing south so we may seem some traders stepping in short now. I do not advice of that action but also wont frown upon it.
Remember to always use stop loss and practice good risk management, and remember that your stops may not work this time.


Cheers.
Comment: going to plan
as expected VOLUME was accompanied by the break DOWN
Comment: Missed our first target by mear DOLLARS
DONT WORRY
more blood to come
Trade closed: target reached: All but one target was met but i think we get our last target
Have a plan. Trade it!

Comments

Awesome chart man
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@tdfx528, appreciate the love !
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