This post will detail how I initially set up my SWING trade strategies for a medium term play and what levels I look at for flipping ETH. First, lets notate what's going on in the charts:
Day Chart.
1. MACD crossed up, but is starting to fade and has not gone into positive territory
2. RSI is in the middle.
4 Hour chart:
1. MACD crossing down
2. RSI showing divergence.
3. Trend line resistance. I Adjusted the trend line and we are hitting, I did have this higher, but there is significant resistance at this 500-550 area so it's not a surprise we are moving down.
Buying Scenario if we move down:
I have about a 25% profit on my portfolio this year, while crypto's have moved down more than 50% for the year. We are doing well to say the least and we made out nicely on our last Swing trade, and I want to set up another overall plan going forward and this is what I am looking at. It's hard to say in this vicious bear market if we are out of it yet or whether we get another substantial move up from our first support zone of the 430-450 area. If the market is reversing, it will either happen there or at or buy zone #2 within this channel and double bottom. Once my first orders get filled I will be trailing my stops up as the market moves to lock in profit. We'll watch it close at that time to determine whether we should load up more or let our Martingale Strategies take hold if it moves down.
If you don't know what the martingale strategy is, make sure you read up on it! I will stagger my buys something like this:
Buy zone 1: 10%
Buy zone 2: 10%
Buy Zone 3: 20%
Buy zone 4: 30%
Buy Zone 5: 30%
My first buy I am looking to get in at this 430-450 area depending on what it does. Remember, having an over arching plan in place before we start trading allows us flexibility. Before bitcoin dropped all the way down to $6,400, we were able to flip it twice. More importantly this strategy gives us OPTIONS. We are able to pivot and adjust as the market does, go in heavier if need be, etc.. If the market starts dropping like a rock, we have a solid plan in place to play it. Just as we did last time. Going in from 600 down to this 375 level and out with profit.
Buying Scenario if we move up.
We need to test these resistance zones at 575 or the 600-625 in order for us to be buyers on pull backs. Once those levels are hit, I would be looking to buy in this 500-525 zone for a continuation move.
Until we move either up or down from here, we are in a no trade zone.
Happy Trading. Don't stress, don't use leverage and pick your points!
-Sherem
Day Chart.
1. MACD crossed up, but is starting to fade and has not gone into positive territory
2. RSI is in the middle.
4 Hour chart:
1. MACD crossing down
2. RSI showing divergence.
3. Trend line resistance. I Adjusted the trend line and we are hitting, I did have this higher, but there is significant resistance at this 500-550 area so it's not a surprise we are moving down.
Buying Scenario if we move down:
I have about a 25% profit on my portfolio this year, while crypto's have moved down more than 50% for the year. We are doing well to say the least and we made out nicely on our last Swing trade, and I want to set up another overall plan going forward and this is what I am looking at. It's hard to say in this vicious bear market if we are out of it yet or whether we get another substantial move up from our first support zone of the 430-450 area. If the market is reversing, it will either happen there or at or buy zone #2 within this channel and double bottom. Once my first orders get filled I will be trailing my stops up as the market moves to lock in profit. We'll watch it close at that time to determine whether we should load up more or let our Martingale Strategies take hold if it moves down.
If you don't know what the martingale strategy is, make sure you read up on it! I will stagger my buys something like this:
Buy zone 1: 10%
Buy zone 2: 10%
Buy Zone 3: 20%
Buy zone 4: 30%
Buy Zone 5: 30%
My first buy I am looking to get in at this 430-450 area depending on what it does. Remember, having an over arching plan in place before we start trading allows us flexibility. Before bitcoin dropped all the way down to $6,400, we were able to flip it twice. More importantly this strategy gives us OPTIONS. We are able to pivot and adjust as the market does, go in heavier if need be, etc.. If the market starts dropping like a rock, we have a solid plan in place to play it. Just as we did last time. Going in from 600 down to this 375 level and out with profit.
Buying Scenario if we move up.
We need to test these resistance zones at 575 or the 600-625 in order for us to be buyers on pull backs. Once those levels are hit, I would be looking to buy in this 500-525 zone for a continuation move.
Until we move either up or down from here, we are in a no trade zone.
Happy Trading. Don't stress, don't use leverage and pick your points!
-Sherem
Comment:
Chart update for ETH -
Comment:
Adjusting martingale's accordingly -
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