This is my notes analyzing ETH on daily chart and monthly chart. From my analysis, I think ETH is not a buy, may be a hold or a sell!
Since last few days, I traded using 15 min, 30 min and 1 hour candles and hodled onto my trades for more than a day to wake up next morning and realize I was getting toasted. Therefore for the next few days, I think its best to first look at daily charts to confirm a bullish trend and then enter market for 15 min quickies.
Whether I am in profit or loss with ETH, I would place stop-limit orders to sell and buy in at a cheaper price.
Screenshot of ETHUSD(coinbase) daily chart (Jan 31 2018):
Here
1.As you see, ETHUSD is forming a bearish rising flag/wedge pattern starting Jan 17 2018 when it first hit its new lows after all time high(ATH) on Jan 17 2018. (The bearish rising flag/wedge pattern is between dotted blue lines).
2.Elliott correction wave(ABC) is in teal color. The (C) of the Elliott correction wave appears to be lower than 982(close of Jan 23 2018). ETH hitting 50 day EMA(blue string) may present a buying opportunity for day traders. If the candles do not bounce up from 50 day EMA, then ETH candles will first strike Donchian channel lower line(black) giving a hint that the candles will further slide towards 200EMA.
3.ADX does not have a trend suggesting bearish rising flag is in formation.
4.MACD is trending down with a small notch at Jan 29 2018 which is considered a continuation of declining momentum.
5.Even volume indicators(UO, Volume, OBV etc.) are neutral to bearish indicating bearish rising wedge might collapse any day soon.
Screenshot of ETHUSD(coinbase) Monthly chart (Jan 31 2018):
On the monthly chart, as you see, the monthly ETH candle is sitting on top of Upper Bollinger Band(red line) which is a sign that in the next month’s candle will retrace….
Therefore, I think ETH is not a buy, may be a hold or a sell as of today(Jan 31 2018, Time: 19:00 UTC)!…Please let me know what you think!
More Details will follow as time permits. Please let me know if I am missing anything…..
Legal Disclaimer: I am not bribed to write here and I am not seeking insider favors. I wrote here so I get replies from fellow viewers to educate myself and for my daily expenses. Hence, if anyone uses this post for making their decisions, I am not responsible for any failures incurred.
Safe Trading!
Kal Gandikota
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PS4: Glossary of Terms Used
ETH Ethereum
ATH All Time High
EMA Exponential Moving Average
MACD Moving Average Convergence Divergence
OBV On Balance Volume
ADX Average Directional Index