After the bloodshed that was the sell off in alts many of them have put in reversal patterns, including Ethereum!
Ethereum's Bullish U-Turn Pattern
Yesterday's reversal candle in Ethereum was rather sweet for a couple reasons.
- We broke the 280 level support level only to rally and close above it
- We got a reversal candle that closed near the low of the prior day (above would be ideal but close enough)
- This happen on a large spike in volume.
Basically we got my favorite entry pattern to get long crypto: a bullish u-turn.
The fact that is happened right at a previous support level is why I particularly liked it.
My Gameplan:
Looking at the chart you can see the 280 support line and yesterday's reversal candle. The entry signal was the close of that candle. I was not around for it but got online a few hours later and was able to jump in at 281.
Profit Target:
- The prior top (its more a consolidation) that lines up to the next prior support line drawn at 368.
Stop Loss:
- A break of yesterday's low at 250.
Risk/Reward = 87 potential profit vs. 31 potential loss for a 2.8 ratio.
If there is one thing that I preach as a must on trades is that you need to get a minimum 2 to 1 risk/reward and this ETH setup satisfies that.
Clean and Simple
There are 100's of indicators that you can use, but after 15 years of trading I found price, volume and basic support/resistance levels work best for me. This ETH setup is a nice example of that.
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Disclaimer: All info in this post is my opinion and for informational purposes only
Free e-book: ScaredyCatGuide to Knowing What the Heck Bitcoin Is
Disclaimer: All info in this post is my opinion and for informational purposes only
I read an article this morning suggesting that ICOs selling their ETH, are gonna drive the market into double digits, and that retail buyers like me and you, cant buy the dip with enough volume to stop that. These big ICO, ETH holders, can simply sell more than we can buy.
Its kinda hard to believe, and at the same time, makes a lot of sense when you think about projects that EOS who had more what 4 billion in ETH from their year long ICO, and of course they are liquifying that as they do business to operate and grow.
I would not disagree with that at all, which is why I'm sticking to trading it as opposed to HODLing it.
The ICOs also want to trade their ETH at a good price. They would be stupid to bulk sell now!
Nan lifeA u turn ley
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I like the set up based on yesterday's hammer candle. The first test is the $320 level on the 4 hr chart.
Yeah, we are getting a pullback on the highly before even reaching that. UGH lol.
Just stay at the sideline and wait for the storm to clear. It is not worth the risk for a few hundred dollars. At least that's what most smart investors are doing right now.
Agreed, but it all depends on what you are doing. I'm a trader so I will trade the ebbs and flows. My long-term holdings are a separate thing.
Is that princess power going to push ETH higher? ;-)
yes @scaredycatguide ETH market really disappoint ... are you getting ?