This is to redeem myself after that last call on ETH... quite wrong - however a good reminder of why we set stop losses and only trade extremes which allows us to cut losses quickly.
Classic continuation setup here today on ETHUSD with a symmetrical triangle.
With this fear and capitulation it creates a strong trend which fill follow through its course (with each consolidation forming a continuation pattern, usually a symmetrical triangle) until there is a confirmed bottom with buy volume filling in and little to no selling/rapid drops. I will post a new chart when I see that forming.
Most important to look for to confirm a symmetrical triangle continuation pattern is descending volume favoring the side it is moving (in this case selling), which is happening. Further, since our drop from $180 there has formed a hidden bearish divergence on RSI & MACD, shown in red. This is where the indicators make higher highs, but the price makes lower highs, indicating strength is worn out and price will soon fall.
I'm watching the $85 support line, which is the bottom of the previous $85-$100 range back in May of 2017.
1) Symmetrical Triangle
2) Hidden bearish divergence on 4H RSI & MACD
3) Descdending volume, favoring sell side, with recent spike on price drop.
Moving Forth.
Classic continuation setup here today on ETHUSD with a symmetrical triangle.
With this fear and capitulation it creates a strong trend which fill follow through its course (with each consolidation forming a continuation pattern, usually a symmetrical triangle) until there is a confirmed bottom with buy volume filling in and little to no selling/rapid drops. I will post a new chart when I see that forming.
Most important to look for to confirm a symmetrical triangle continuation pattern is descending volume favoring the side it is moving (in this case selling), which is happening. Further, since our drop from $180 there has formed a hidden bearish divergence on RSI & MACD, shown in red. This is where the indicators make higher highs, but the price makes lower highs, indicating strength is worn out and price will soon fall.
I'm watching the $85 support line, which is the bottom of the previous $85-$100 range back in May of 2017.
1) Symmetrical Triangle
2) Hidden bearish divergence on 4H RSI & MACD
3) Descdending volume, favoring sell side, with recent spike on price drop.
Moving Forth.
Trade closed: target reached:
Target of $85 reached perfectly, trade completed.
A nice bounce yesterday on shorts closing and longs opening, however, as I said above I will update as I see a bottom forming and this is not it yet. We are still below major resistance of $100 and in bear territory.
A break above $100 on good volume would suggest a turnaround to me.
A nice bounce yesterday on shorts closing and longs opening, however, as I said above I will update as I see a bottom forming and this is not it yet. We are still below major resistance of $100 and in bear territory.
A break above $100 on good volume would suggest a turnaround to me.
Comment:
This suggests a turnaround.
