In the chart ETH: Arise Phoenix, i showed a potentiual bullish setup for ETH.
I managed to go long literally on the bottom wick ($644) however something didn't feel right. The breakout lacked luster. As a result, at $744 I took profit.
Also I noticed that ETHBTC was showing 4-hour bearish divergence, so at $700 I flipped reverse short and set a stop above the recent high.
Why?
Right hand side chart: ETHUSD 4-hour
This chart pattern. Ether has a head/shoulders developing with a downside target in the $500 range.
Also overlaid on the chart is a fractal from the 1.4k top showing breakdown. The market symmetry is there. We have a good potential setup for short from 700 with a stop at 744, targeting the 500 range.
Left hand chart: ETHUSD daily
Zooming out whats more scary. If this short setup plays out, then we could go near the lows. There's potential for a much bigger head/shoulders on Ether with a lower target. I don't like to make predictions so far out but it is a possibility and one I will be watching out for.
Risk management
I managed to go long literally on the bottom wick ($644) however something didn't feel right. The breakout lacked luster. As a result, at $744 I took profit.
Also I noticed that ETHBTC was showing 4-hour bearish divergence, so at $700 I flipped reverse short and set a stop above the recent high.
Why?
Right hand side chart: ETHUSD 4-hour
This chart pattern. Ether has a head/shoulders developing with a downside target in the $500 range.
Also overlaid on the chart is a fractal from the 1.4k top showing breakdown. The market symmetry is there. We have a good potential setup for short from 700 with a stop at 744, targeting the 500 range.
Left hand chart: ETHUSD daily
Zooming out whats more scary. If this short setup plays out, then we could go near the lows. There's potential for a much bigger head/shoulders on Ether with a lower target. I don't like to make predictions so far out but it is a possibility and one I will be watching out for.
Risk management
- Never risk more than 2% of account to stop on one trade,
- Be careful of taking loads of correlated trades.
- Crazy advanced bearish or bullish calls are just that. Crazy. Take them one day at a time.
Comment:
Breaking down ..
Comment:
The big head & shoulders has also broken down now ...
Trade closed: target reached:
Left chart profit target reached! :panic: :O
