I wanted to take some time after this last night to learn what was happening with ETHUSD. It was an awful first quarter, but last night was the first time RSI hit an extreme. The impulse down was nearly equal to the prior two, but I expect the RSI to trigger new long volume, which will turn the latest bar into a bullish hammer. Together, these become self-reinforcing and start enough momentum to demonstrate the first truly bullish impulse wave. After impulse (1), retrace (2), and impulse (3), we'll have the first truly bullish signal of the year. Where retrace (4) and impulse (5) go are difficult to project--balanced arguments for a fast or quick recovery can be made.
Comment:
EOD; not quite a perfect hammer, but it was there +/- 1 hr of EOD. I'll call this success so far. Next step, the first impulse of a bullish turnaround. Will give it 5 more days to form.
After the initial post this morning, ETH hit a low of day just a few bucks below my target at $450, and has since climbed back up to $533. Just a couple more percent and well have that hammer. What a day!