ETHEREUM (ETHUSDT) DAILY BUY&SELL TRADE SETUPS 2020/12/29
Market Overview
Trade Recap
Yesterday we had a 'very high risk' trade that I recommended only for the super risk-seeking traders. Depending on how tight you set the stop loss below the S&R flip of ~$717, you might've been stopped out or had a profitable trade. That is the nature of a 'very high risk' trade, which doesn't give profits easily and often involves large drawdowns.
Long Trade Setup #1: Retest and Continuation
To open a long position, we are waiting for price to retrace back down to test the 200MAs and then continue moving up.
Trade Entry Confirmation:
1. Price Action: Price needs to move back down to the 200MAs and bounce back up (200MAs currently projected to be $700-710 zone).
2. Candlestick Pattern: A bullish candlestick pattern such as a bullish engulfing candle, a pinbar, or a multiple candlestick breakdown (a large red candle followed by multiple green candles that eventually close above the open/high of the large red candle)
3. Volume: Above average volume on the bullish engulfing candle, a pinbar, or on any of the multiple green candles that eventually break the red candle (ideally on the candle that breaks)
4. MACD: MACD histogram bottoming out, as indicated by the histogram becoming less negative (changing from red to pink)
Long Trade Setup #2: Breakout and Continuation
To open a long position, we are waiting for price to break resistance, move back down to test previous resistance as support and then bounce back up.
Trade Entry Confirmation:
1. Price Action: Price breaks above the high of $748 with force, creating space between the price and the $748 level, falls back down to $748 and bounce back up.
2. Candlestick Pattern: A bullish candlestick pattern such as a bullish engulfing candle, a pinbar, or a multiple candlestick breakdown (a large red candle followed by multiple green candles that eventually close above the open/high of the large red candle)
2.1 Ideally Engulfing / Break candle has a large candle body with small wicks
2.2 Ideally Engulfing /Break candle closes near the highs of the candle
3. Volume: Above average volume on the bullish engulfing candle, pinbar, or on any of the multiple green candles that eventually break the red candle (ideally on the candle that breaks)
4. MACD: MACD histogram bottoming out, as indicated by the histogram becoming less negative (changing from red to pink)
Short Trade Setup: False Breakout
To open a short position, we are waiting for price to break above the horizontal resistance @ $748 and then fall back down.
Trade Entry Confirmation:
1. Price Action: Price breaks above the high of $748 and then rapidly falls below $748, forming a bull trap
2. Candlestick Pattern: A breakout candlestick (candle close above $748) followed by a breakdown candlestick (candle close below $748)
2.1 Ideally breakout and breakdown candlesticks are consecutive candles, but can also have a few candles in between the two candlesticks
2.2 Ideally the breakdown candle has a large candle body with very small wicks
3. Volume: Above average volume (volume above the average volume line) on both breakout candle and breakdown candle, ideally the breakdown candle's volume is a local high
4. MACD: MACD histogram topping out, as indicated by the histogram becoming less positive (color changing from dark green to light green)
Entry Confirmations:
Ideally we get all confirmations for an entry, but sometimes we might take a trade when we have fewer confirmations. The more confirmations, the higher the win probability, though it also means you miss out on some profitable trades if you're only taking trades when we have all confirmations. It's up to your own risk appetite to decide when you feel comfortable entering a trade. You can also adjust position size based on level of conviction, entering a bigger position when there are more confirmations. Make sure you practice proper risk management and money management.
Trade Management:
I have put in preliminary Stop Loss and Take Profit on the chart, but these will depend on how the entry setup forms, so I will update when we have a valid entry signal.
Stop Loss: We typically put a SL around the high / low of the entry area, though we might adjust based on market conditions such as high ATR ( average true range ) or long wicks.
Take Profit: We typically aim for at least a 2:1 RRR (risk reward ratio), but you can decide to take profits earlier, adjust stop loss as we get into profit, take partial profit, leave a small portion for larger gains, etc. How you want to manage depends on your own risk appetite and what you are comfortable with.
MAKE SURE YOU FOLLOW ME SO THAT YOU DONT MISS TRADE SIGNALS, GET THE LATEST SL AND TP LEVELS, AND FOLLOW THE TRADE PLAY OUT IN REAL TIME!
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.
- ETH has pumped from a base of $620 all the way up to a high of $740, a 20% increase, catching up to the BTC pump, with ETH/BTC pair rallying from a low of 0.02275 to a high of 0.02766. Price has since started to stall and retrace. Let's see if ETH has juice for another major bull leg up or if it has formed a local top and will correct / consolidate.
- The two main levels immediately significant on the charts that we want to focus on are the highs of $748 and the 200MAs in the $700-710 zone. We will be looking for trading opportunities in these two areas, and I've laid out three potential trade setups in detail below.
Trade Recap
Yesterday we had a 'very high risk' trade that I recommended only for the super risk-seeking traders. Depending on how tight you set the stop loss below the S&R flip of ~$717, you might've been stopped out or had a profitable trade. That is the nature of a 'very high risk' trade, which doesn't give profits easily and often involves large drawdowns.
Long Trade Setup #1: Retest and Continuation
To open a long position, we are waiting for price to retrace back down to test the 200MAs and then continue moving up.
Trade Entry Confirmation:
1. Price Action: Price needs to move back down to the 200MAs and bounce back up (200MAs currently projected to be $700-710 zone).
2. Candlestick Pattern: A bullish candlestick pattern such as a bullish engulfing candle, a pinbar, or a multiple candlestick breakdown (a large red candle followed by multiple green candles that eventually close above the open/high of the large red candle)
3. Volume: Above average volume on the bullish engulfing candle, a pinbar, or on any of the multiple green candles that eventually break the red candle (ideally on the candle that breaks)
4. MACD: MACD histogram bottoming out, as indicated by the histogram becoming less negative (changing from red to pink)
Long Trade Setup #2: Breakout and Continuation
To open a long position, we are waiting for price to break resistance, move back down to test previous resistance as support and then bounce back up.
Trade Entry Confirmation:
1. Price Action: Price breaks above the high of $748 with force, creating space between the price and the $748 level, falls back down to $748 and bounce back up.
2. Candlestick Pattern: A bullish candlestick pattern such as a bullish engulfing candle, a pinbar, or a multiple candlestick breakdown (a large red candle followed by multiple green candles that eventually close above the open/high of the large red candle)
2.1 Ideally Engulfing / Break candle has a large candle body with small wicks
2.2 Ideally Engulfing /Break candle closes near the highs of the candle
3. Volume: Above average volume on the bullish engulfing candle, pinbar, or on any of the multiple green candles that eventually break the red candle (ideally on the candle that breaks)
4. MACD: MACD histogram bottoming out, as indicated by the histogram becoming less negative (changing from red to pink)
Short Trade Setup: False Breakout
To open a short position, we are waiting for price to break above the horizontal resistance @ $748 and then fall back down.
Trade Entry Confirmation:
1. Price Action: Price breaks above the high of $748 and then rapidly falls below $748, forming a bull trap
2. Candlestick Pattern: A breakout candlestick (candle close above $748) followed by a breakdown candlestick (candle close below $748)
2.1 Ideally breakout and breakdown candlesticks are consecutive candles, but can also have a few candles in between the two candlesticks
2.2 Ideally the breakdown candle has a large candle body with very small wicks
3. Volume: Above average volume (volume above the average volume line) on both breakout candle and breakdown candle, ideally the breakdown candle's volume is a local high
4. MACD: MACD histogram topping out, as indicated by the histogram becoming less positive (color changing from dark green to light green)
Entry Confirmations:
Ideally we get all confirmations for an entry, but sometimes we might take a trade when we have fewer confirmations. The more confirmations, the higher the win probability, though it also means you miss out on some profitable trades if you're only taking trades when we have all confirmations. It's up to your own risk appetite to decide when you feel comfortable entering a trade. You can also adjust position size based on level of conviction, entering a bigger position when there are more confirmations. Make sure you practice proper risk management and money management.
Trade Management:
I have put in preliminary Stop Loss and Take Profit on the chart, but these will depend on how the entry setup forms, so I will update when we have a valid entry signal.
Stop Loss: We typically put a SL around the high / low of the entry area, though we might adjust based on market conditions such as high ATR ( average true range ) or long wicks.
Take Profit: We typically aim for at least a 2:1 RRR (risk reward ratio), but you can decide to take profits earlier, adjust stop loss as we get into profit, take partial profit, leave a small portion for larger gains, etc. How you want to manage depends on your own risk appetite and what you are comfortable with.
MAKE SURE YOU FOLLOW ME SO THAT YOU DONT MISS TRADE SIGNALS, GET THE LATEST SL AND TP LEVELS, AND FOLLOW THE TRADE PLAY OUT IN REAL TIME!
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.
Comment:
ETH just entered our area of interest for a potential long. Waiting for market confirmation (macd, candlestick, price action, and volume) before opening a long position.
Comment:
Entry signal
Risk: medium
Entry: market
SL: low 690s (aggressive) or below 689 (conservative)
TPs: 710, 720, 740, 748, moon
Risk: medium
Entry: market
SL: low 690s (aggressive) or below 689 (conservative)
TPs: 710, 720, 740, 748, moon
Comment:
TP1 hit! Congratulations to those who took the trade. Can take some profits here and/or move stop loss up, up to you! Always remember to secure profits though. Cheers.
Comment:
The major risk to our long trade right now is btc, namely that btc is looking quite weak. If btc can hold for a little bit. Or even move up, we should be able to hit our higher targets quite quickly. Exercise caution, secure profits, and don’t be too greedy.
Comment:
Hitting TP2! congrats guys!
Comment:
Reached TP3! Congratulations!
Comment:
TP4 reached! This has been a great trade, hope you made good profits. Follow to get future trades like this. Cheers.
