Let's look at Ethereum using Ichimoku indicator and a chart pattern for better understanding further market movements. Firstly we have to note that the price is above the cloud and it tells us that the market is bullish. Probably the price will bounce from the cloud and Kijun line. If so, it will be a new trading opportunity. We'll be able to buy based on the reversal signal. The high of the signal candle will be a level for placing pending orders. Also we can wait for an additional signal confirming further upward movement. The price will give such signal when it breaks the downtrend line and the previous swing high. This downtrend line is a part of a symmetrical triangle. The symmetrical triangle usually forms during a trend as a continuation pattern. So, if the price breaks the downtrend line, the triangle pattern will be realized as continuation pattern and we'll get a solid signal for buying. Entry level can be above 770.00 with stop orders below the local swing low. The main profit target should be at 1000.00 level. The part of trade volume can be left for long run with target at 1500.00 level.
Alternative variant: if the price breaks the uptrend line and moves below the symmetrical triangle, it will be a signal of further downward movement. The possible support zone will be at 500.00 level. If we get a confirmed reversal signal, we'll be able to open new long positions but this time using better entry level.
@osb40000, if you don't need additional signals confirming the upward movements, it's possible to buy based on a reversal signal. But I like to wait for 770.00 level.
osb40000
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@DLavrov, Thank you! I'm still learning! I really do love your TA, thank you for the time you put into it.
halcy0n9001
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@osb40000, Waiting for confirmation of the breakout @ $770 increases the probability that momentum will continue to carry the price upward.
Yes you loose out on a small % by waiting, but being a successful trader is about trading higher probability set-ups consistently so that over the long term you are profitable.
acostalugo85
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@halcy0n9001, I love @DLavrov analysis, this guy always buy high and sell higher, BUT you have to be patience and wait for a candle closing above his price not just touching, you have to set an alarm or something to not be glue to the monitor.
halcy0n9001
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@acostalugo85, Completely agree! Patience is a big part of the game.