Trade ETH like a boss, from the guy who called the H&S 1st.
Chart update. Position: Very Bearish with a chance of bounces
Technicals. Day and Weekly Chart.
1. RSI is in negative territory
2. MACD looking vicious to the downside.
3. Breaking lows.
It's clear we are in a bear market. No question at this point. We want to look for signs of a reversal, but there are none and we will continue looking. With all of that down pressure, What's a trader to do? Profit, of course! There are a lot of ways you can do it, the methodology I will be going over in this post is the Martingale Strategy and how to play the bounces as we move up. The reason I like this is because I am not perfect and I can't watch the markets 24/7. Everyone has things they need to do during the day and you also need sleep. The martingale technique involves looking at what you think the highest probability move is for a bounce and then entering in accordingly and playing the bounces. more importantly if you are wrong, you have points in place and plenty of room to be wrong. You have options, which is important. Lets see what BTC -4.29% is telling us here.
We know we are moving down. But how far down can we go? At this it's hitting it's double bottom at this 600 area. It would seem that a bounce is in the cards, but it's hard to say. what if it blows through that support point, and completes the ABCD pattern I have outlined, what do you do? For me, I implement a martingale strategy and I would do something like this:
ETH BUY @ 600 area: 10% of portfolio -This trade is active
ETH BUY @ 500 area: 20% of portfolio
ETH BUY @ 400 area: 40% of portfolio
Where's the other 30% you ask? Well, what if it blows through this 400 area and shoves to 250-300 area? This is a low possibility (IMO) and while a bounce would be very warranted before a push to the 300 area, personally, I like having a backup plan and options. If ETH looks like its going to bottom at 400 I can always enter in or sit on the sidelines. The key is having options. There is a lot of ways you can weight your martingale positions depending on where you think the bounces will happen. Right now I have an entry in at $620. Do I care that I am losing like I normally would be if I went all in? Hardly. In fact, I want it to go down to fill my large orders. If all my orders get filled down to 420, i will have an average buy price of 472 to play the upside, and some reserves. If it moves to the upside, great! i get to profit there before it resumes down. Right now i am targetting this 680 area for a bounce
Lot of ways you can play it, I outlined some of the possibilities I am looking at. Key is to not stress about your trades. Make sure you read up on martingale strategies. You might not make as much using the martingale, but you will lose less if done correctly. Part of trading is controlling your emotions and this strategy allows you to do that. ESPECIALLY in bear markets!
Happy Trading,
-Sherem
calling the top -
Calling the H&S -
Technicals. Day and Weekly Chart.
1. RSI is in negative territory
2. MACD looking vicious to the downside.
3. Breaking lows.
It's clear we are in a bear market. No question at this point. We want to look for signs of a reversal, but there are none and we will continue looking. With all of that down pressure, What's a trader to do? Profit, of course! There are a lot of ways you can do it, the methodology I will be going over in this post is the Martingale Strategy and how to play the bounces as we move up. The reason I like this is because I am not perfect and I can't watch the markets 24/7. Everyone has things they need to do during the day and you also need sleep. The martingale technique involves looking at what you think the highest probability move is for a bounce and then entering in accordingly and playing the bounces. more importantly if you are wrong, you have points in place and plenty of room to be wrong. You have options, which is important. Lets see what BTC -4.29% is telling us here.
We know we are moving down. But how far down can we go? At this it's hitting it's double bottom at this 600 area. It would seem that a bounce is in the cards, but it's hard to say. what if it blows through that support point, and completes the ABCD pattern I have outlined, what do you do? For me, I implement a martingale strategy and I would do something like this:
ETH BUY @ 600 area: 10% of portfolio -This trade is active
ETH BUY @ 500 area: 20% of portfolio
ETH BUY @ 400 area: 40% of portfolio
Where's the other 30% you ask? Well, what if it blows through this 400 area and shoves to 250-300 area? This is a low possibility (IMO) and while a bounce would be very warranted before a push to the 300 area, personally, I like having a backup plan and options. If ETH looks like its going to bottom at 400 I can always enter in or sit on the sidelines. The key is having options. There is a lot of ways you can weight your martingale positions depending on where you think the bounces will happen. Right now I have an entry in at $620. Do I care that I am losing like I normally would be if I went all in? Hardly. In fact, I want it to go down to fill my large orders. If all my orders get filled down to 420, i will have an average buy price of 472 to play the upside, and some reserves. If it moves to the upside, great! i get to profit there before it resumes down. Right now i am targetting this 680 area for a bounce
Lot of ways you can play it, I outlined some of the possibilities I am looking at. Key is to not stress about your trades. Make sure you read up on martingale strategies. You might not make as much using the martingale, but you will lose less if done correctly. Part of trading is controlling your emotions and this strategy allows you to do that. ESPECIALLY in bear markets!
Happy Trading,
-Sherem
calling the top -
Calling the H&S -
Trade active:
Per my post, I entered at 620. This is right at this zone right now and has some room to move up still to the 680 area. What looks like will happen is we will have a rebound in ETH/BTC which will drive this up to the 680 level and keep BTC suppressed at this 8.5k-9k area. We'll see what happens as we approach the weekend here.
Per my post, I entered at 620. This is right at this zone right now and has some room to move up still to the 680 area. What looks like will happen is we will have a rebound in ETH/BTC which will drive this up to the 680 level and keep BTC suppressed at this 8.5k-9k area. We'll see what happens as we approach the weekend here.
Trade active:
i am using this 578 low as another point to enter one of my laddered buys. Specifically, I am entering in with the same amount I did at 620 so my average price is now 597. I will be looking to get out on any rebound to 600 that would lead to break even in anticipation that another move down will occur after. I still have the majority of my portfolio laddered down at 520 and heavily weighted down above 400.
Comment:
My average entry price is $533, got some great fills as it moved down. I got a fill at 475 and it almost hit our 420 mark. It's really trying to bust this $560 high, if that happens we should get some further movement to the upside.
620: 10%
575: 10%
520: 15% - this one could be getting filled here shortly, we'll see
420: 40%