Ethereum (ETHUSDT) Daily Long&Short Trade Setups 2021/02/01

Feb 1, 2021

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Market Overview

• Price Action: ETH has dropped >11% from a high of $1437 to a low of $1270. It is currently on its way to retest the 200MAs. Let's see if we get a short signal or if we break above to regain bullish momentum.
  
• Chart Patterns: There is a descending channel as well as a resistance trendline.
  
• Areas of Interest: The area(s) of interest for us are the lows @ $1270 and the 200MAs @ $1330-1340. Once price reaches one of our areas of interest and gives us a valid entry signal, I will update the trade, so make sure you follow me to get the trade entry signals in real time.
  

Trade Setups
Below are the potential trade setups that I would be interested in trading. Once price reaches one of these zones, I will monitor closely and post a trade signal if we get a high probability trade setup.

Long Trade Setup #1: False Breakdown
1. Price Action: Price breaks below the then rapidly climbs above $1270, forming a bear trap
2. Trade Entry Confirmations: A breakdown candlestick  followed by a reclaiming candlestick, above average volume on both breakdown candle and reclaiming candle, MACD bottoming

Short Trade Setup #1: Retest and Continuation (200MAs)
1. Price Action: Price needs to move back up to the 200MAs, currently projected to be @ $1330-1340 by the time price reaches it, and bounce back down.
2. Trade Entry Confirmations: Bearish candlestick pattern, above average volume, MACD topping out

Trade Recap

• 2021/01/30: We had winning trade! We entered a long @ $1370.5, with Stop Loss @ $1352.3, and price reached a high of $1390, giving a risk reward ratio of 1.1:1, meaning if you risked 1BTC on this trade, you could've made 1.1BTC.
  
• 2021/01/28: We had two trades yesterday, 1 win and 1 loss. The losing trade we entered short @ $1272.8 and hit stop loss. The winning trade we entered short @ $1289, max TP $1260, giving a risk reward ratio of 1:44, meaning if you risked 1BTC on this trade, you could've made 1.44BTC.
  
• 2021/01/11: We had losing trade! We entered a long @ $1024.8, with Stop Loss @ $971, which was hit.
  

About Me

• I started trading in 2008, first got introduced to bitcoin in 2009, and have been actively trading cryptocurrencies since 2016.
  
• I have worked on Wall Street trading bonds, stocks, and options.
  
• I have worked at top consulting firms advising Fortune 500 companies and worked on $10Billion+ deals.
  
• I have founded and advised blockchain projects and companies, including in the areas of defi, nft, data ownership, and personal identity.
  
• I have taken hundreds of live trades, each recorded with over 50 data points, all meticulously analyzed, using data analysis and modeling to optimize win probability and risk reward.
  

Why Follow Me

• Daily analysis on the latest market movements and price zones for high probability trade setups.
  
• Live trade signals so that you can take the same trades that I am taking.
  
• A great place to help each other, learn from each other, and grow together.
  
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• Constantly testing and adding new trading strategies and refining battle-tested ones.
  

DISCLAIMER: I'M NOT A FINANCIAL ADVISOR AND THIS IS NOT FINANCIAL ADVICE, AND I WILL NOT BE RESPONSIBLE FOR YOUR WINS OR LOSSES, DYOR.

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Feb 1, 2021

Note

#ETH20210201 a close below 1319 with strong volume and right confirmations will give us a short signal