ETHUSD 1h, primed for a breakout. Adam & Eve

Hello fellow traders,
Today we have the ETHUSD pair on the 1 hour candlestick chart. We can see a bullish chart pattern taking shape here.

According to Thomas Bulkowski's Encyclopedia Of Chart Patterns, the Adam and Eve formation is characterized by a sharp and deep first bottom on high volume (Adam). The stock bounces and develops a more gentle correction, printing a second bottom (Eve) on lower volatility. Eve's rounded bottom takes longer to develop than the Adam spike and it is characterized by lower volumes.

As you can see, we have he higher volume, and deeper downside on the first spike (Adam), and lower volume, with a gentle upside correction (Eve).

I believe if ETHUSD 1hr candle closes convincingly above $205 it will open up a good long opportunity.


Thanks for reading, let me know if you agree or disagree.

Comment:

I believe that since the price broke down lower than the eve spike indicated on the chart, this is now invalidated.

I am still bullish on this asset class in the long term, please see my other ideas for inspiration

Farewell and stay safe traders,
Vanilladelphia.eth

Trade active:

Showing some nice signs of life overnight. This is still very much in play.

Trade closed manually:

This played out exactly as we expected. Hopefully your trades were on the same side as mine, if so you made some decent profits, congrats!

Be kind to each other,
Vanilladelphia.eth