ETHUSD is in a great configuration to understand how a chart works, at least mine.
In current cycle (1h time frame), ethusd is very bearish and 4h time frame do not really offer any floor as well. We only know that daily is bullish because of the motive 5 waves up from inception, but we only have a wide area where the correction could end (I pushed it once already).
Now, in the current cycle and cycle of higher degree, we have not reached equal leg area, there I have to push the count lower. However, did I recommend to the patrons to sell? Never. Can we buy the 1h time frame? Absolutely not! Can we buy daily, yes! but with stop that are in accordance to the time frame.
Then can I buy in 1h time frame and set tight stop if it is a buy in daily? No, this is called picking bottoms and tops and we will be losing 90% of the time (the time your are right is the one at the bottom, but we might out of amno aka capital by then). If you buy, you set a stop in the daily chart (my lowest green zone) and your risk should still be 2%. If you buy in 1h, risk is still 2% but you will lose 3,7, 10 times before being right.
In my charts, I have proposed a bullish scenario and I have been keeping changing the count lower. So are my chart bad? I do not think so, they just reflect the path that the instrument is showing at the moment I draft the chart..
So why do I say that we cannot buy in 1h and why do I recommend not to sell in 1h?
The answer might be coming in the few coming sessions: higher degree will eventually always overcome the lower time frames through the truncation process.
If you want to know more about how I do my charts, you are welcome to ask me here or PM.
In current cycle (1h time frame), ethusd is very bearish and 4h time frame do not really offer any floor as well. We only know that daily is bullish because of the motive 5 waves up from inception, but we only have a wide area where the correction could end (I pushed it once already).
Now, in the current cycle and cycle of higher degree, we have not reached equal leg area, there I have to push the count lower. However, did I recommend to the patrons to sell? Never. Can we buy the 1h time frame? Absolutely not! Can we buy daily, yes! but with stop that are in accordance to the time frame.
Then can I buy in 1h time frame and set tight stop if it is a buy in daily? No, this is called picking bottoms and tops and we will be losing 90% of the time (the time your are right is the one at the bottom, but we might out of amno aka capital by then). If you buy, you set a stop in the daily chart (my lowest green zone) and your risk should still be 2%. If you buy in 1h, risk is still 2% but you will lose 3,7, 10 times before being right.
In my charts, I have proposed a bullish scenario and I have been keeping changing the count lower. So are my chart bad? I do not think so, they just reflect the path that the instrument is showing at the moment I draft the chart..
So why do I say that we cannot buy in 1h and why do I recommend not to sell in 1h?
The answer might be coming in the few coming sessions: higher degree will eventually always overcome the lower time frames through the truncation process.
If you want to know more about how I do my charts, you are welcome to ask me here or PM.
Comment:
ethusd failed to take out 418.25 in the first attempt. Retraced deep but 01/04/2018 low held. Levels are in place and patrons know what to expect in both scenarios.
And we are turning now. So, this explains why I have said to not sell ETHUSD in 1h because the higher degree showed all the elements that the move could be done any time now. Indeed, the 1h cycle did truncate at 61.8%-78.4% extension.
Now, i did not buy this level because I do not trade daily charts but 1h (setup in 4h and execution in 1h) but this is where big guns entered for sure with wide stops. The tide is turning but let's see what market says!