ETHUSD: Sell Trigger Can Lead To Test Of 440 Support.

BITFINEX:ETHUSD   Ethereum / U.S. Dollar
ETHUSD update: 482 pin bar low has been taken out which is a sell trigger according to our perspective at S.C. The lower high off the 494 to 518 minor resistance zone is the reason why we were not interested in any swing trade longs. The coming retrace will serve as an important test of the recent strength that has appeared in these markets.

Price is near the newly established bullish trend line after breaking 482. If price continues to push lower, the next level we will be watching for is the 440 area. This is a minor bullish reversal zone boundary (not on chart for sake of simplicity).

IF a bullish pin bar appears around the 440 level or around 423, we will be looking for a swing trade long trigger.

A sell signal like the one that just appeared is good for locking in some profit if you managed to buy at lower prices. Since we do not short these markets, shorting is not a possibility within the scope of our strategies.

We are also holding inventory in BTC and other coins and will not sell any during the next retrace. The long term probability that these markets climb out of these lows is just beginning. With the amount of long term potential baked into these markets, there is no reason to lighten up on our positions at these levels, even in the face of a sell trigger.

In summary, as I wrote earlier in my S.C. report, it is important to have a detailed process the defines every part of your decision making. We separate our strategies by time frame and define our decision making criteria from there. That type of organization is what serves as the most effective guide during conflicting signals such as a sell trigger within a slow grind recovery.

At S.C., we look at these markets through the lense of a position trader and swing trader simultaneously. If this market retraces back to extrme prices like the 390s, we will be looking to accumulate more. If price instead forms a broader higher low, we will be looking for the swing trade long. Either way, we have a predetermined plan for what the market decides, not what we "predict" it will do. Check S.C. for trade ideas because that is where we share them with our followers.
Comment: ETHUSD update: The bearish momentum is now hesitating around the 440 area. This is the important higher low test that I have mentioned before. At the moment there are no triggers to enter so we having nothing to do but wait, but this is a good area for small accumulation. I will be publishing a BTC update momentarily.
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@MarcPMarkets Thanks for superb insight! I’ve been following this for a while.

Hey guys, what do you think?
Even at 418 low at CB it's far from it's previous low which was 360-365 range. This market and BCH has not made new lows and unless it breaches these lows like LTC did i have no reason to believe that long term outlook is bearish but it's bullish.
Keep on accumlating guys.
On BTC however it made a new low but it wasn't very far from it's previous low as BTC has huge range to move in and candle closed strong above 6k so i still see overall market sentiment is bullish very long term.
I always like to watch what BTC is doing when talking altcoins as they pretty much follow BTC no matter what pattern they are currently in.
I'd love to be able to recognize these triggers more efficiently. 4h bullish/bearish pin bars don't seem to be enough, or I just go for the wrong ones.
Thank you for your TA Marc.
Very well done. Nice job.
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