Even tough yesterday was a crazy day for the crypto markets, it is nothing abnormal, bitcoin crashes an average of 20% quite frequently, we believe that the bull market in Crypto should remain intact after what happened on Friday and in this post we want to help out the day traders on tradingview by shedding light on Multiple Time Frame Analysis.
As you will notice in the below chart, if you only knew the key levels on ETHUSD's 1D chart and had a vital trading skill, patience, you could have day traded the 5M chart quite successfully.
We will get into the 5m chart in the comments below, for now just a quick analysis of the 1D chart of Ethereum:
As you can see to the left, we had a strong resistance which formed in early September this year, not that long ago, from that resistance ETHUSD crashed a solid 33%, or better said, corrected in a BULL TREND!
After that resistance was broken on the 20th of October, it then because a support, a support we used 5 times so far since the 20th of October, with yesterday the 6th time, and if it continues to hold there is a very solid chance we are going to attempt a breakout of the current ATH's.
We have also enclosed a related video we released not to long ago which might help those of you who prefer to listen rather than read!
As you will notice in the below chart, if you only knew the key levels on ETHUSD's 1D chart and had a vital trading skill, patience, you could have day traded the 5M chart quite successfully.
We will get into the 5m chart in the comments below, for now just a quick analysis of the 1D chart of Ethereum:
As you can see to the left, we had a strong resistance which formed in early September this year, not that long ago, from that resistance ETHUSD crashed a solid 33%, or better said, corrected in a BULL TREND!
After that resistance was broken on the 20th of October, it then because a support, a support we used 5 times so far since the 20th of October, with yesterday the 6th time, and if it continues to hold there is a very solid chance we are going to attempt a breakout of the current ATH's.
We have also enclosed a related video we released not to long ago which might help those of you who prefer to listen rather than read!
The talking chart above shows you everything you need to know, but I'd like to take a minute and explain something you probably didn't know. After every major move on an asset, either up or down, the first major resistance that is formed, when price actually turns around becomes a very important resistance level, in this case we had a bear move so we focus on the resistance and when the resistance is done we wait for the support.
The above chart clearly shows you those two very important levels, the first resistance and the first support, they are the two levels you can base your day trading on, and as you can see, you could have made some solid profits trading these two levels.
Patience is a very important trait of any successful trader, the ability to wait for your edge to show up is a skill few people posses, think about it like this: You go to work for about 9 hours a day, you don't leave because you get bored right? Otherwise you'll be out of a job, why can't you just wait for the right indications to show up before executing a trade? At the end of the day, how well you enter will have a vital impact on your SL and overall success as a trader.