The Stochastic Multi-TF Trading Strategy for ETH/USD + SIGNALS !
Hi there,
Here is an advanced technical analysis for ETH/USD based on the Stochastic Multi-Timeframe Trading Strategy. The strategy is fully described and the signals are presented on the chart, so that you could use them immediately! Also, significant trend channels for ETH/USD are presented on the chart, which makes the entry and exit points more accurate.
Enjoy reading this idea and you’ll get exact instructions on how to trade ETH/USD over the medium-term and hopefully achieve profitability!
The Stochastic Multi-TF Trading Strategy for ETH/USD is based on a set of four stochastic oscillators with different values for input parameters. The primary timeframes used are H4 and D1. The oscillators’s input parameters have been thoroughly optimized to get the highest forecasting accuracy possible, based on current ETH volatility and trend.
The medium-term trend
The medium-term trend signal is SELL. That means that over the next week ETH/USD price will most probably decline.
The target price should be set at $120 (the take-profit level), according to recognized chart patterns.
On a daily timeframe, the Stoch (18,3,3) is steadily declining and approaching an oversold range, which is a strong SELL signal. The Stoch (6,3,3) - a similar oscillator, but with a shorter 6-day input for the %K line - is also indicating a sell signal and both of its moving averages are directed downwards.
Also, we’ve got a clearly formed downward trend channel on a daily chart. The trendlines of this channel slope in a downward direction, and the ETH price is making lower lows and lower highs. This is a continuation chart pattern that confirms the downtrend signal.
Entry and Exit Points
To identify precise entry and exit prices, let’s take a look at a junior H4 timeframe.
On the H4, the Stochastic (6,3,3) is growing and is approaching an oversold range. This represents a short-term (intra-day) bullish signal, and means that you should wait until the price adjusts upwards to $134.5 and then enter short (sell) ETH/USD. In particular, the sell signal will be generated when the stochastic oscillator enters an overbought range and the %K moves from above the %D line to below it.
Summary of trading signals:
- Enter short (sell) at $134.5, when the Stoch (6,3,3) on the H4 timeframe enters an overbought range and the %K moves from above the %D line to below it.
- Set Stop-Loss at $145 - the next significant resistance level.
- Set Take-Profit at $120 - the next significant resistance level.
- Forecasted P&L: +$15 or +12% (or +120% per 1 Lot with 10x Leverage)
- Risk/Reward Ratio: 1.5x
I hope this analysis was useful to you. This strategy provides a good example of how the stochastic oscillator can be used together with trend analysis on multiple timeframes.
If you like it and would like to receive future updates - Please, follow me on TradingView!
If you follow me, I guarantee you will receive timely updates to this trading strategy in the future, including all new trading signals.
This will allow you to stay on top of the current Ethereum trend and hopefully maximize your profits!
If you agree, please, Like this idea - This would be the best feedback and encouragement for me!
To your trading success,
Monfex!
Here is an advanced technical analysis for ETH/USD based on the Stochastic Multi-Timeframe Trading Strategy. The strategy is fully described and the signals are presented on the chart, so that you could use them immediately! Also, significant trend channels for ETH/USD are presented on the chart, which makes the entry and exit points more accurate.
Enjoy reading this idea and you’ll get exact instructions on how to trade ETH/USD over the medium-term and hopefully achieve profitability!
The Stochastic Multi-TF Trading Strategy for ETH/USD is based on a set of four stochastic oscillators with different values for input parameters. The primary timeframes used are H4 and D1. The oscillators’s input parameters have been thoroughly optimized to get the highest forecasting accuracy possible, based on current ETH volatility and trend.
The medium-term trend
The medium-term trend signal is SELL. That means that over the next week ETH/USD price will most probably decline.
The target price should be set at $120 (the take-profit level), according to recognized chart patterns.
On a daily timeframe, the Stoch (18,3,3) is steadily declining and approaching an oversold range, which is a strong SELL signal. The Stoch (6,3,3) - a similar oscillator, but with a shorter 6-day input for the %K line - is also indicating a sell signal and both of its moving averages are directed downwards.
Also, we’ve got a clearly formed downward trend channel on a daily chart. The trendlines of this channel slope in a downward direction, and the ETH price is making lower lows and lower highs. This is a continuation chart pattern that confirms the downtrend signal.
Entry and Exit Points
To identify precise entry and exit prices, let’s take a look at a junior H4 timeframe.
On the H4, the Stochastic (6,3,3) is growing and is approaching an oversold range. This represents a short-term (intra-day) bullish signal, and means that you should wait until the price adjusts upwards to $134.5 and then enter short (sell) ETH/USD. In particular, the sell signal will be generated when the stochastic oscillator enters an overbought range and the %K moves from above the %D line to below it.
Summary of trading signals:
- Enter short (sell) at $134.5, when the Stoch (6,3,3) on the H4 timeframe enters an overbought range and the %K moves from above the %D line to below it.
- Set Stop-Loss at $145 - the next significant resistance level.
- Set Take-Profit at $120 - the next significant resistance level.
- Forecasted P&L: +$15 or +12% (or +120% per 1 Lot with 10x Leverage)
- Risk/Reward Ratio: 1.5x
I hope this analysis was useful to you. This strategy provides a good example of how the stochastic oscillator can be used together with trend analysis on multiple timeframes.
If you like it and would like to receive future updates - Please, follow me on TradingView!
If you follow me, I guarantee you will receive timely updates to this trading strategy in the future, including all new trading signals.
This will allow you to stay on top of the current Ethereum trend and hopefully maximize your profits!
If you agree, please, Like this idea - This would be the best feedback and encouragement for me!
To your trading success,
Monfex!
Trade closed manually:
This Idea has been updated, since we’ve got a reversal / uptrend signal!
Please, check out my recent ideas to stay on top of the current Ethereum trend.
There are lots of potentially profitable trades!
Yours, Monfex!
Please, check out my recent ideas to stay on top of the current Ethereum trend.
There are lots of potentially profitable trades!
Yours, Monfex!
