After 271 days of sideways movement, this is my plan on ETH.
Today, we will look at the current sideway movement that started in MAY 2021 on ETH and in the cryptocurrency sector as a whole.
I think the cyclical characteristic of these assets such as ETH and BTC will continue (nobody knows exactly when the beginning or end of these massive bullish and bearish cycles is exactly; however, we can get ready in some ways)
On this weekly logarithmic chart, we can observe similarities between the current correction and the previous one in 2016.
Are we going to observe the same? nobody can answer that; however, I can do this. "IF the price behaves in a similar way (which is what the price has been doing so far) then I can look for patterns on that situation to wait for a similar resolution.
Great so what's the main conclusion on this? I have been observing not only on that correction in 2016 but in several ones (please make sure to do your due diligence to verify what I'm saying) that after observing these big bearish movements, we can draw a descending trendline, and the breakout + small retest (like the circles you can see on the main chart) represent a great trading opportunity entering on a new higher high, with the stop loss on the low of the structure.
Of course, you will observe stop losses, but after several executions, I have concluded that is a profitable pattern in the long term.
Cool. Be more specific, please, what do you want to see before trading? Ok, my final setup here will be this. IF I observe contact with the major support zone, I will wait for the pattern I have defined "optimal trading scenario," and I will trade towards a new ATH. IF that doesn't happen, I will start outside the market.
Why did you draw the same situation on the current area? Because that's a possible resolution that "may" happen, but I'm not willing to take the risk there so far.
I will keep updating this idea while the price keeps moving. Thanks for reading! Feel free to share your view in the comments.
I think the cyclical characteristic of these assets such as ETH and BTC will continue (nobody knows exactly when the beginning or end of these massive bullish and bearish cycles is exactly; however, we can get ready in some ways)
On this weekly logarithmic chart, we can observe similarities between the current correction and the previous one in 2016.
Are we going to observe the same? nobody can answer that; however, I can do this. "IF the price behaves in a similar way (which is what the price has been doing so far) then I can look for patterns on that situation to wait for a similar resolution.
Great so what's the main conclusion on this? I have been observing not only on that correction in 2016 but in several ones (please make sure to do your due diligence to verify what I'm saying) that after observing these big bearish movements, we can draw a descending trendline, and the breakout + small retest (like the circles you can see on the main chart) represent a great trading opportunity entering on a new higher high, with the stop loss on the low of the structure.
Of course, you will observe stop losses, but after several executions, I have concluded that is a profitable pattern in the long term.
Cool. Be more specific, please, what do you want to see before trading? Ok, my final setup here will be this. IF I observe contact with the major support zone, I will wait for the pattern I have defined "optimal trading scenario," and I will trade towards a new ATH. IF that doesn't happen, I will start outside the market.
Why did you draw the same situation on the current area? Because that's a possible resolution that "may" happen, but I'm not willing to take the risk there so far.
I will keep updating this idea while the price keeps moving. Thanks for reading! Feel free to share your view in the comments.