ETHEREUM FINDING BULLISH MOMENTUM (LONG) or RSI Divergence?
HI GUYS, I'M FIRST TIME POSTING ANALYSIS.
Ethereum (ETHUSD) 1 Hour timeframe -> Short formed W. This is a make or break level and indicates a higher low with strong bullish momentum.
The neckline of W can be a perfect entry ONLY WHEN price breaks the neckline (Black horizontal line - 3334) with strong momentum which will also result in 50-EMA breaking which indicates a strong buying level. The target will be a risk to reward of 1:2 which comes out to be 3463 (or you can exit at 3450 as well which was important support for previous days, so it can becomes strong resistance as well). Stop loss will be below neckline of Short formed W (3269)
Therefore only take entry when :
1. Strongly breaking horizontal resistance level (3334)
2. Breaking neckline and top of short W (same levels - 3334)
3. Breaking 50 day EMA strong
Once you have these 3 confirmations, you can take a trade and try for 200 EMA target as well while trailing stop loss.
RISKS OF TRADE : Conversely, if the current levels do not sustain, we can see sharp selling with RSI Divergence where the power/momentum of ETHUSD has increased at same price levels (3334). This means it is in overbought zone and will likely to fall till RSI gets a support or comes around 40-42.
Ethereum (ETHUSD) 1 Hour timeframe -> Short formed W. This is a make or break level and indicates a higher low with strong bullish momentum.
The neckline of W can be a perfect entry ONLY WHEN price breaks the neckline (Black horizontal line - 3334) with strong momentum which will also result in 50-EMA breaking which indicates a strong buying level. The target will be a risk to reward of 1:2 which comes out to be 3463 (or you can exit at 3450 as well which was important support for previous days, so it can becomes strong resistance as well). Stop loss will be below neckline of Short formed W (3269)
Therefore only take entry when :
1. Strongly breaking horizontal resistance level (3334)
2. Breaking neckline and top of short W (same levels - 3334)
3. Breaking 50 day EMA strong
Once you have these 3 confirmations, you can take a trade and try for 200 EMA target as well while trailing stop loss.
RISKS OF TRADE : Conversely, if the current levels do not sustain, we can see sharp selling with RSI Divergence where the power/momentum of ETHUSD has increased at same price levels (3334). This means it is in overbought zone and will likely to fall till RSI gets a support or comes around 40-42.
Trade closed: target reached:
Target reached.