Trading Idea for Ethereum💸
Updated
In this idea, I'm going to share my own short-term trading plan on Ethereum. So this one is not an analysis it is an action plan with calculations.
As you can see on the chart (1H time-frame), ETH has reached a PRZ (Potential Reversal Zone) around $1310. This is the high of the last bullish wave on our ascending trend (you can see the yellow trend-line to find my bullish trend). I came to this conclusion because of four reasons:
1. RSI bullish trend-line is broken downwards
2. There is a bearish divergence on MACD
3. The price has reached the level 1 Fibonacci Extension
4. The Red (sales) volumes are rising, and the Green (buys) volumes are decreasing
So it is time for a correction now, to find to size of the correction I've used to Fibonacci retracements on the last bullish wave. The "green box" is our strongest support area on the Fibonacci. But also if I want to make my support area stronger I'll pick the area that my green box overlaps with the yellow bullish trendline. This will be the area for me to buy Ethereum if the price hit it, it is somewhere between $1210 - $1220.
Here is the trading trick, this strong support area, is a good place for me to buy. But what will happen if things go wrong?!! Before anything else I'm going to plan to setup my stop-loss. There are two good stop-losses here:
1. Somewhere around $1190, it is our lower low from our previous low
2. When the yellow bullish trend-line is broken
So we have our stop-loss, it's time to calculate our take profit area. With drawing two Fibonacci extensions, from our two last bullish waves to our green box (if the price hit that area as the end of the correction), we'll get two level 1 Fibonacci Extension. First one around $1368 and second one around $1446. My tow take profit points will be below these levels. The good thing about this trading idea is its great R/R ration that you can see on the chart!
I will definitely update this trading idea as the market proceed, so make sure you follow my account and stay tuned.
As always feel free to ask any question you have about my idea and share your own thoughts on the comment section. And if you like this idea make sure you hit the BOOST button.
As you can see on the chart (1H time-frame), ETH has reached a PRZ (Potential Reversal Zone) around $1310. This is the high of the last bullish wave on our ascending trend (you can see the yellow trend-line to find my bullish trend). I came to this conclusion because of four reasons:
1. RSI bullish trend-line is broken downwards
2. There is a bearish divergence on MACD
3. The price has reached the level 1 Fibonacci Extension
4. The Red (sales) volumes are rising, and the Green (buys) volumes are decreasing
So it is time for a correction now, to find to size of the correction I've used to Fibonacci retracements on the last bullish wave. The "green box" is our strongest support area on the Fibonacci. But also if I want to make my support area stronger I'll pick the area that my green box overlaps with the yellow bullish trendline. This will be the area for me to buy Ethereum if the price hit it, it is somewhere between $1210 - $1220.
Here is the trading trick, this strong support area, is a good place for me to buy. But what will happen if things go wrong?!! Before anything else I'm going to plan to setup my stop-loss. There are two good stop-losses here:
1. Somewhere around $1190, it is our lower low from our previous low
2. When the yellow bullish trend-line is broken
So we have our stop-loss, it's time to calculate our take profit area. With drawing two Fibonacci extensions, from our two last bullish waves to our green box (if the price hit that area as the end of the correction), we'll get two level 1 Fibonacci Extension. First one around $1368 and second one around $1446. My tow take profit points will be below these levels. The good thing about this trading idea is its great R/R ration that you can see on the chart!
I will definitely update this trading idea as the market proceed, so make sure you follow my account and stay tuned.
As always feel free to ask any question you have about my idea and share your own thoughts on the comment section. And if you like this idea make sure you hit the BOOST button.
Note
The PRZ is working well as expected and the price hit it with a rejection.. Now price is possibly making a double top pattern, if it breaks yellow support around $1265 the bearish move will start.
Trade active
I bought ETH $1253 due to our previous idea. Unfortunately I don't have time to post the reasons now, I'll elaborate my reasons tomorrow. Stay tuned!!!
Trade active
The price has reached to our preferred strong support area as our first entry point.
New SL and TP was set with previous update. Let's see how it goes..
By the way, this red break out looks like a failed breakout.
Trade active
This what it means when we call an area a strong support.The price pumped strongly after it hit the green box!!!
Trade active
The expected bullish move is started. You can see my Take Profit points on the update chart above.
Trade closed: stop reached
The stop loss is hit and my trade is closed now.. There are important changes happening in the market now and I will post more ideas to handle the situation together.. Stay tuned..
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