We are currently at a very critical point where ETH decides if we already finished the correction or not.
If we are finished, we must bounce of the 0.786 Fib which is a HUGE support (and psychological number with $500)
So, if we do bounce of (see O1 in purple), then we have finished the first wave of a new cycle with higher highs and higher lows coming in our way.
When that will happen, we are officially in the second bigger wave of ETH, with everything that happened so far as the first wave.
And with that we will see new highs (meaning the price will surge over $1400 in the long run).
Well this is the positive point of view.
But I have some problems with that:
Either way we can just sit back and prepare for the worst and hope for the best. And also either way we are soon finished with the correction and we are going for new highs. It is just a matter of how low you got into the coin.
How to trade it:
And what I would advice you to do is not to go all in at once but averaging in.
I will buy some right now if it goes up awesome if not I am happy I can get more coins for an even cheaper price before we take off.
I use this strategy basically on all of my trades.
I average in on the way down and will take profits on the way up. (with rebuys at the corrections off the first and second wave)
If we are finished, we must bounce of the 0.786 Fib which is a HUGE support (and psychological number with $500)
So, if we do bounce of (see O1 in purple), then we have finished the first wave of a new cycle with higher highs and higher lows coming in our way.
When that will happen, we are officially in the second bigger wave of ETH, with everything that happened so far as the first wave.
And with that we will see new highs (meaning the price will surge over $1400 in the long run).
Well this is the positive point of view.
But I have some problems with that:
- 1. We also have a big resistance (orange line) we also have to break through + a thick clout which supports the idea that it will be hard to break through this point. Therefore, I definitely think that we will bounce off of this resistance at least once before we go higher.
2. There is also the possibility that we break through this support and go even deeper. This supports the view at the 1week candle sticks (I will integrate that idea below). It basically shows that the correction can also not be over jet and that we are still in a big ABC correction.
Either way we can just sit back and prepare for the worst and hope for the best. And also either way we are soon finished with the correction and we are going for new highs. It is just a matter of how low you got into the coin.
How to trade it:
And what I would advice you to do is not to go all in at once but averaging in.
I will buy some right now if it goes up awesome if not I am happy I can get more coins for an even cheaper price before we take off.
I use this strategy basically on all of my trades.
I average in on the way down and will take profits on the way up. (with rebuys at the corrections off the first and second wave)
Comment:
If you think this information is helpful, please support my posts by your LIKEs! It will motivate me to write more posts and share with you my ideas about the markets. Thank you!
Comment:
Here is the view if we haven't finished the correction yet:
Comment:
Because so many liked this idea I though I give you a longtime BIG PICTURE with exact targets and exactly what to do:
Comment:
So this is what you do:
- You buy now
- Target for this wave is around $1600
- at this point you take 50% profit of what you have invested (this will be a 300% gain)
- I use trailing stop losses in order to catch the peek for all of this
- Then you may set a "pseudo" stop loss at the $1000 mark
- You can rebuy at this point if you want to
- Then last step get out of the trade with everything you got because after this the market will go down (the correction I painted is optimistical it could basically go all the way back to where we are right now)
- From where we are now to the top of the 5. move we have a gain of 500%
- You buy now
- Target for this wave is around $1600
- at this point you take 50% profit of what you have invested (this will be a 300% gain)
- I use trailing stop losses in order to catch the peek for all of this
- Then you may set a "pseudo" stop loss at the $1000 mark
- You can rebuy at this point if you want to
- Then last step get out of the trade with everything you got because after this the market will go down (the correction I painted is optimistical it could basically go all the way back to where we are right now)
- From where we are now to the top of the 5. move we have a gain of 500%
Comment:
With now I of course don't mean that you have to buy today. With that I mean you now look for an entry with your trading plan, taking everything into account I said above.
Comment:
Here the targets for all europeans ;) same strategy:
Comment:
If you like these kind of BIG PICTURE / How To Trade series let me know by commeting, liking, messaging me, etc.
