ETHUSD possible short scenario?
4H ETHUSD analysis
I'try to be as brief as possible. I used red color to mark bearish signs and yellow to mark rather uncertain or neutral signs. Green would be for bullish signs.
1) Horizontal triangle. In some scenarios neutral pattern in this it first looked as a bullish penant, but since it broke down we could expect a brief change of trend from bullish to bearish and correction to occur.
the target has been set to 70% of possible price swing that this breakdown might result in. I find targets between 60 - 75% to be efficient and still quite reliable.
2) EMA Ribbon (4H) - as it serves as a great support in bullish trend it can quickly switch into a resistance in a bullish trend. Here it is important to look at it to see how far has the price gotten from it. If the price move was too agressive we can see it"got to far too quickly" in comparison to the volatility of last days. (Similar effect would be noticable with Bollinger Bands). This all means, it would be reasonable to wait for a little pullback to the EMA wich would also be a pullback to the lower part of triangle.
3) Hidden bullish divergence on RSI(4H) this might be a bit worrying as there was no major bullish move following this huge divergence. Still there was one and also it has been more than a week so this is rather neutral or uncertain sign.
4) RSI (4H) shows us not only that the trend is bearish but also it still isn't oversold.
5) CCI - not really common in cryptoworld but it has it's perks. Since there already was a break through - 100 level I would wait a bit. If the value comes back up and the -100 serves as resistance that would be really bearish.
6) Stoch. RSI - A volatile cousin of a good old RSI. Currently showing us the trend is oversold. Be careful though, it can be at its lowest but it does not mean the price reversal in any means. Only crossing the - 80 level would be bullish sign, until then it still is a bear. Still the fresh crossing of the -80 downwards would be a bit more bearish.
7) (confusingly) Volume - Since we have seen a nice smooth climb in the volume, the price move is rather natural, not caused by a massive slippage or poor liquidity as it might have been few days ago with bitcoin when coinbase was out...
What do you think? Do you like it? Is it rubbish? Let me know in the comments.
I'try to be as brief as possible. I used red color to mark bearish signs and yellow to mark rather uncertain or neutral signs. Green would be for bullish signs.
1) Horizontal triangle. In some scenarios neutral pattern in this it first looked as a bullish penant, but since it broke down we could expect a brief change of trend from bullish to bearish and correction to occur.
the target has been set to 70% of possible price swing that this breakdown might result in. I find targets between 60 - 75% to be efficient and still quite reliable.
2) EMA Ribbon (4H) - as it serves as a great support in bullish trend it can quickly switch into a resistance in a bullish trend. Here it is important to look at it to see how far has the price gotten from it. If the price move was too agressive we can see it"got to far too quickly" in comparison to the volatility of last days. (Similar effect would be noticable with Bollinger Bands). This all means, it would be reasonable to wait for a little pullback to the EMA wich would also be a pullback to the lower part of triangle.
3) Hidden bullish divergence on RSI(4H) this might be a bit worrying as there was no major bullish move following this huge divergence. Still there was one and also it has been more than a week so this is rather neutral or uncertain sign.
4) RSI (4H) shows us not only that the trend is bearish but also it still isn't oversold.
5) CCI - not really common in cryptoworld but it has it's perks. Since there already was a break through - 100 level I would wait a bit. If the value comes back up and the -100 serves as resistance that would be really bearish.
6) Stoch. RSI - A volatile cousin of a good old RSI. Currently showing us the trend is oversold. Be careful though, it can be at its lowest but it does not mean the price reversal in any means. Only crossing the - 80 level would be bullish sign, until then it still is a bear. Still the fresh crossing of the -80 downwards would be a bit more bearish.
7) (confusingly) Volume - Since we have seen a nice smooth climb in the volume, the price move is rather natural, not caused by a massive slippage or poor liquidity as it might have been few days ago with bitcoin when coinbase was out...
What do you think? Do you like it? Is it rubbish? Let me know in the comments.
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