Ethereum: Uptrend Will Be Continued - When to Buy?

Let's say that Ethereum decided to continue the uptrend. We have the following signals supporting this statement:
- bullish divergence gave a trend reversal signal
- the price broke the downtrend line and confirmed the downtrend reversal
- the price moves above the main uptrend line, and it gave an additional bullish signal.

You could buy based on these trend reversal signals, but if you skipped this upward movement, you should not be upset. There will be new trading opportunities soon, and we are going to talk about them.

The price reached SMA with period 100. It looks like we will get a bearish signal confirming the price reversal. Also, RSI is going to confirm the price reversal too. MACD histogram supports a downward movement.
These signals tell us that the market can correct the upward movement, and we should be ready to see a short term retracement to a support zone.

This time the support zone is formed by SMA with period 200, the uptrend line, and 200.00 support level between them. The price reversal in this zone in the direction of the main uptrend will provide us a new buy opportunity. This signal will be good for buying not only because of better entry levels but also from the point of view of proper trading - we will open a long position in the direction of the main uptrend at the trend line based on a reversal signal. It sounds great, don't you think so?

But also we should not forget that any market can move against us any time. That's why we must use stop-loss orders in order to exit from such markets when we understand that our trading plan does not work anymore.

If you decide to buy based on the reversal signal, don't forget to place stop-loss orders below the uptrend line. Profit targets should be at the resistance levels.


If you have your vision of how to trade in this market, please share your ideas in comments! I will be grateful if you support my work by your likes!