ETH is hitting the trend line and has a divergence on RSI, MACD histogram is falling and looks to be crossing soon, price is far from the key moving averages. Looks to be a good opportunity for a small short trade. Is ETH over extended or will ETH go parabolic?
@aigerimomar10, I think so based on what I see, but the market can have a funny way of going the opposite way everyone is thinking. I'm sure there is a wall of stops not too much higher from where price is now. If they get taken out, price can go parabolic. Let's see..
AlexDerkach20
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When to buy and sell in your opinion?
BigAccount
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@AlexDerkach20, Hi Alex, I do not give out trade advice when to buy/sell because if I am wrong I don't want to be at fault for anyone's capital loss. I only post charts which I think show unique situations unfolding and let traders decide what they want to do.
With that said, personally I prefer not to short in a bull market but this particular chart is showing a decent setup for a short trade. There is no sell signal as of yet, part of trading is being patient and waiting for the trade to come to you. I prefer to get a reversal candle setup or an indicator sell signal on a lower time frame for a precise entry with a tight stop, keeping the reward to risk at least a 1.5 : 1.
If you should trade this short have a relatively tight stop, because the market can keep going higher and take out a wall of stops which will cause a short squeeze causing parabolic movement. The longer price hangs out at a certain area, the more volatile it was move in either direction.