ETH Potential Trade Setups 2020/12/21
Daily ETH Potential Trade Setups
There are two potential trade setups that could develop and we can wait patiently to see if either setup gives us a good trade entry
Scenario 1: False Breakdown at Horizontal Support
In this first scenario, we are waiting for price to hit the horizontal support @621. We will be looking for price to close below 621 and then quickly recover above 621, creating a bear trap and a false breakdown setup. As confirmation, we want to see above average volume, especially for the candle that closes back above 621. We will also want to see MACD histogram bottoming out for us to open a long position.Should price crash below 621, be careful that markets might correct further downward and best to stay on the sidelines until markets stabilize.
Scenario 2: False Breakout at Horizontal Resistance
The second trade setup that we are waiting for is for price to go up to the horizontal resistance at 676 and for a false breakout setup. This setup is characterized by price making a higher high than 676, ideally closing beyond 676 and then followed by price closing below 676, ideally in the candle following the close above 676. As confirmation, we want to see above average volume, especially for the candle closing back below 676. We will also want to see MACD histogram topping out for us to open a short position.
Please follow for daily trading levels and potential trade setups on Bitcoin and Ethereum .
There are two potential trade setups that could develop and we can wait patiently to see if either setup gives us a good trade entry
Scenario 1: False Breakdown at Horizontal Support
In this first scenario, we are waiting for price to hit the horizontal support @621. We will be looking for price to close below 621 and then quickly recover above 621, creating a bear trap and a false breakdown setup. As confirmation, we want to see above average volume, especially for the candle that closes back above 621. We will also want to see MACD histogram bottoming out for us to open a long position.Should price crash below 621, be careful that markets might correct further downward and best to stay on the sidelines until markets stabilize.
Scenario 2: False Breakout at Horizontal Resistance
The second trade setup that we are waiting for is for price to go up to the horizontal resistance at 676 and for a false breakout setup. This setup is characterized by price making a higher high than 676, ideally closing beyond 676 and then followed by price closing below 676, ideally in the candle following the close above 676. As confirmation, we want to see above average volume, especially for the candle closing back below 676. We will also want to see MACD histogram topping out for us to open a short position.
Please follow for daily trading levels and potential trade setups on Bitcoin and Ethereum .
Comment:
Price approaching horizontal support @$621. Watching for market reaction to see if a valid trade entry occurs. Will keep updating.
