ETHUSD Inverse Head Shoulders Possibility + Bullish Divergence
It would seem that a bullish divergence pattern is forming for ETHUSD chart with a lower low on ETHUSD price but a higher low on the RSI . Daily divergence patterns usually do play out as in this case a possible bottom could have formed as long as price maintains a lower low and RSI maintains a higher low.
What does a bullish divergence pattern normally mean?
Bullish divergence pattern as explained by Investopedia typically means:
This situation demonstrates that bears are losing power, and that bulls are ready to control the market again—often a bullish divergence marks the end of a downtrend.
Also, is would seem that a possible bottom signal may be forming with an inverse head and shoulders pattern possibility. An inverse head and shoulders pattern usually signals that the price has bottomed and a reversal is in play. The price needs to move to at least around 195 for this pattern to form and possibly play out.
A Cup and Handle is also possibly forming on both ETHUSD and BTCUSD (thought for BTCUSD the handle may have printed too low a price - yet to be seen if it can still work out).
Wait for breakout to trade and be careful of fakeouts. Keep stop losses in profit once you see it in green (comfortable profits) to avoid getting trapped in a fakeout possibility.
There is also a possible cup and handle pattern and the handle is currently printing for a possible breakout trade possibility as well.
Also there is a huge CME gap on BTCUSD from the Friday close candle of 9165 and low of 9060.
Bullish signals are forming but nothing is 100%. Trade only what you can afford to lose, on low leverage (unless you are a professional trader with experience and you know what you are doing and have specific stop losses points).
Good luck!
What does a bullish divergence pattern normally mean?
Bullish divergence pattern as explained by Investopedia typically means:
This situation demonstrates that bears are losing power, and that bulls are ready to control the market again—often a bullish divergence marks the end of a downtrend.
Also, is would seem that a possible bottom signal may be forming with an inverse head and shoulders pattern possibility. An inverse head and shoulders pattern usually signals that the price has bottomed and a reversal is in play. The price needs to move to at least around 195 for this pattern to form and possibly play out.
A Cup and Handle is also possibly forming on both ETHUSD and BTCUSD (thought for BTCUSD the handle may have printed too low a price - yet to be seen if it can still work out).
Wait for breakout to trade and be careful of fakeouts. Keep stop losses in profit once you see it in green (comfortable profits) to avoid getting trapped in a fakeout possibility.
There is also a possible cup and handle pattern and the handle is currently printing for a possible breakout trade possibility as well.
Also there is a huge CME gap on BTCUSD from the Friday close candle of 9165 and low of 9060.
Bullish signals are forming but nothing is 100%. Trade only what you can afford to lose, on low leverage (unless you are a professional trader with experience and you know what you are doing and have specific stop losses points).
Good luck!
Comment:
Have longs felt real pain yet? If not, then there might just be another painful event coming, probably a quick scam wick down to liquidate more longs before a quick recovery with heavy buys. Ever since the CME bitcoin futures started, longs have had to face lots of pain before seeing real profits. If you can stand the pain you will reap the rewards. Thats just my take.
Be careful of fakeouts.