ETH long (1,25R) on key levels and correlation to BTC
I have created a stop buy limit order for that setup.
My hypothesis:
The past tells me that BTC and ETH (and other alts) have correlating price action.
By the time bitcoin has broken the resistance of its consolidation channel ETH will have broken:
1. the major downtrend line (diagonal red line)
2. the last highest high
From that momentum I expect the order block that engulfs the two resistances also to be broken.
Bitcoin has a $450 / 6,8% void to fill from the current resistance to the resistance of a major downtrend. See the BTC chart in a separat comment below. I expect that momentum to be translated to alts. Especially to ETH as it has already suffered a lot.
Target:
The resistance of the ascending channel (orange) is the first target. But as the major downtrend is broken at that point I expect that to push the price higher.
Stop-loss:
Unfortunately I didn't found a good reference point to get my stop loss from. I just placed it significantly below the channel and major downtrend support.
Position size:
The full 20% of my portfolio which I planned for ETH.
Disclaimer:
I'm a bloody beginner and I'm only publishing that to put some pressure on my to plan and review my trades correctly. This is why it is obviously not financial advice.
Your feedback is welcome!:
Please tell me your opinions as I'm looking forward to other views on my trade idea in the comments and please click thumbs up if you like id.
My hypothesis:
The past tells me that BTC and ETH (and other alts) have correlating price action.
By the time bitcoin has broken the resistance of its consolidation channel ETH will have broken:
1. the major downtrend line (diagonal red line)
2. the last highest high
From that momentum I expect the order block that engulfs the two resistances also to be broken.
Bitcoin has a $450 / 6,8% void to fill from the current resistance to the resistance of a major downtrend. See the BTC chart in a separat comment below. I expect that momentum to be translated to alts. Especially to ETH as it has already suffered a lot.
Target:
The resistance of the ascending channel (orange) is the first target. But as the major downtrend is broken at that point I expect that to push the price higher.
Stop-loss:
Unfortunately I didn't found a good reference point to get my stop loss from. I just placed it significantly below the channel and major downtrend support.
Position size:
The full 20% of my portfolio which I planned for ETH.
Disclaimer:
I'm a bloody beginner and I'm only publishing that to put some pressure on my to plan and review my trades correctly. This is why it is obviously not financial advice.
Your feedback is welcome!:
Please tell me your opinions as I'm looking forward to other views on my trade idea in the comments and please click thumbs up if you like id.
Comment:
Trade closed: target reached:
Took profit