The Ultimate TREND Trading Strategy for ETH + SIGNALS [Live]
Hi Guys,
I'm thrilled to announce that Monfex is launching a new series of LIVE trading signals generated by a professional and thoroughly optimized trading strategy.
In this publication, we’re presenting The Ultimate TREND-following Trading Strategy for ETH/USD!
Trade signals are being generated based on a combination of three technical analysis tools:
- 10-Days Bollinger Bands indicator,
- Fast Stochastic oscillator (6,3,3), and
- The best-fit linear trend channel (my favorite)
Basically, this strategy combines the signals from a trend indicator, a momentum oscillator, and a chart pattern, that together allow making accurate predictions! Follow me on TradingView, and I guarantee you'll receive timely and accurate trading signals according to this strategy.
The Ultimate TREND-following Trading Strategy for ETH/USD
Market veteran John Bollinger combined his knowledge of mathematics and statistics to create an indicator called Bollinger Bands. Bollinger Bands consist of a moving average plus a higher line representing the moving average plus two standard deviations and a lower line that is a moving average minus two standard deviations.
In this strategy, the trend is based on the direction of the moving average and whether the price is above or below the moving average.
As of Feb 28, the price is BELOW the MA, and the MA is DECLINING. This generates a DOWNWARD TREND / SELL signal for ETH/USD.
To set the Stop-Loss and Take-Profit orders, we apply a contrarian strategy, in which we sell when the Ethereum price reaches the upper band and buy when it reaches the lower band. Such an approach assumes that the price will stay within the bands and it is very effective from the risk-management perspective.
As of Feb 28, this implies that we should place a Stop-Loss order at $160 and a Take-Profit order at $125.
The second critical indicator being used is a Stochastic Oscillator.
It is based on the observation that in uptrends, prices tend to increase towards the high end of their recent range and in downtrends, they tend to decline towards the low end. In input parameters, we apply the shorter the time frame (6,3,3) compared to default (14,3,3) to make it more volatile and precise over the short-term.
As of Feb 28, Stochastic is approaching an overbought range, which is a bearish / downtrend signal. You should wait when %K moves from above the %D line to below it, and then enter short / sell ETH/USD.
Also, we can see a divergence between an oscillator and price. As of Feb 28, the momentum oscillator being used reached a new high, but the price did not also reach a new high at the same time, which represents a divergence. It is considered to be an early warning of weakness, an indication that ETH/USD will most probably begin to decline soon.
And finally, we've got a clearly formed downward trend channel. 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.
So, here is a summary of the trading signals based on The Ultimate TREND Trading Strategy:
- ETH/USD price is BELOW the 10-day MA, and the MA is DECLINING. The trend is DOWNWARD.
- Stochastic is in overbought range, a bearish / downtrend signal.
- There is a divergence between an oscillator and price. This confirms the SELL signal.
- There is a trend channel with the trendlines sloped in a downward direction. This confirms the SELL signal.
- Enter SHORT / SELL at $140-142.
- Set a Stop-Loss at $160 (the upper bound of the BB)
- Set a Take-Profit at $125 (the lower bound of the BB)
- Forecasted P&L: +$15 or +12% (or +120% per 1 Lot with 10x Leverage)
I hope this analysis was useful to you.
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 trading signals based on this trading strategy in the future.
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 success,
Monfex
I'm thrilled to announce that Monfex is launching a new series of LIVE trading signals generated by a professional and thoroughly optimized trading strategy.
In this publication, we’re presenting The Ultimate TREND-following Trading Strategy for ETH/USD!
Trade signals are being generated based on a combination of three technical analysis tools:
- 10-Days Bollinger Bands indicator,
- Fast Stochastic oscillator (6,3,3), and
- The best-fit linear trend channel (my favorite)
Basically, this strategy combines the signals from a trend indicator, a momentum oscillator, and a chart pattern, that together allow making accurate predictions! Follow me on TradingView, and I guarantee you'll receive timely and accurate trading signals according to this strategy.
The Ultimate TREND-following Trading Strategy for ETH/USD
Market veteran John Bollinger combined his knowledge of mathematics and statistics to create an indicator called Bollinger Bands. Bollinger Bands consist of a moving average plus a higher line representing the moving average plus two standard deviations and a lower line that is a moving average minus two standard deviations.
In this strategy, the trend is based on the direction of the moving average and whether the price is above or below the moving average.
As of Feb 28, the price is BELOW the MA, and the MA is DECLINING. This generates a DOWNWARD TREND / SELL signal for ETH/USD.
To set the Stop-Loss and Take-Profit orders, we apply a contrarian strategy, in which we sell when the Ethereum price reaches the upper band and buy when it reaches the lower band. Such an approach assumes that the price will stay within the bands and it is very effective from the risk-management perspective.
As of Feb 28, this implies that we should place a Stop-Loss order at $160 and a Take-Profit order at $125.
The second critical indicator being used is a Stochastic Oscillator.
It is based on the observation that in uptrends, prices tend to increase towards the high end of their recent range and in downtrends, they tend to decline towards the low end. In input parameters, we apply the shorter the time frame (6,3,3) compared to default (14,3,3) to make it more volatile and precise over the short-term.
As of Feb 28, Stochastic is approaching an overbought range, which is a bearish / downtrend signal. You should wait when %K moves from above the %D line to below it, and then enter short / sell ETH/USD.
Also, we can see a divergence between an oscillator and price. As of Feb 28, the momentum oscillator being used reached a new high, but the price did not also reach a new high at the same time, which represents a divergence. It is considered to be an early warning of weakness, an indication that ETH/USD will most probably begin to decline soon.
And finally, we've got a clearly formed downward trend channel. 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.
So, here is a summary of the trading signals based on The Ultimate TREND Trading Strategy:
- ETH/USD price is BELOW the 10-day MA, and the MA is DECLINING. The trend is DOWNWARD.
- Stochastic is in overbought range, a bearish / downtrend signal.
- There is a divergence between an oscillator and price. This confirms the SELL signal.
- There is a trend channel with the trendlines sloped in a downward direction. This confirms the SELL signal.
- Enter SHORT / SELL at $140-142.
- Set a Stop-Loss at $160 (the upper bound of the BB)
- Set a Take-Profit at $125 (the lower bound of the BB)
- Forecasted P&L: +$15 or +12% (or +120% per 1 Lot with 10x Leverage)
I hope this analysis was useful to you.
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 trading signals based on this trading strategy in the future.
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 success,
Monfex
Trade active:
The downward trend continuation pattern has been identified correctly, according to this idea!
It is still valid, and you should trade as indicated on the chart.
To your trading success,
Monfex
It is still valid, and you should trade as indicated on the chart.
To your trading success,
Monfex
