The Resurgence. A Fake-Breakout on Ethereum
Updated
The Weekly candle suggests that it may be closing as a Hammer candle in 29 hours. In anticipation of this, we are anticpating more bullish volume as we move into the next week of trading. Bulls have carried price back inside our 4Hr Range on Ethereum. Price returned to the top of the 4hr range around 1765. We have since returned to the bottom of the range where I can observe a good reward/risk idea. This is known as a Fakeout or Fake-Breakout with regard to price action analysis. It occurs frequently in the market in which price will "Breakout" and candles close outside a range. Soon enough though, price closes back within the range after capturing enough liquidity from the other side. As a consequence we may see a burst of momentum going the other way.
A useful belief that has served me well in the markets has been " Anything can happen"
Therefore, have reasonable expectations and cut losses short and manage risk if the market doesn't go our way.
1708$ is our SL ( a 20$ Loss or -1R )
Take Profit 1 is 1765$ ( a 36$ gain or a 1.8: 1 Reward/Risk )
Take Profit 2 is 1805$ ( a 77$ gain or a 3.5 : 1 Reward/Risk )
Take Profit 3 is 1842$ ( a 114$ gain or a 5.7: 1 Reward/Risk )
A useful belief that has served me well in the markets has been " Anything can happen"
Therefore, have reasonable expectations and cut losses short and manage risk if the market doesn't go our way.
1708$ is our SL ( a 20$ Loss or -1R )
Take Profit 1 is 1765$ ( a 36$ gain or a 1.8: 1 Reward/Risk )
Take Profit 2 is 1805$ ( a 77$ gain or a 3.5 : 1 Reward/Risk )
Take Profit 3 is 1842$ ( a 114$ gain or a 5.7: 1 Reward/Risk )
Note
The Fake-Breakout is playing out as was anticipated and price is bouncing from the bottom of the range ( Box). The Weekly Candle is pulling back up to end off the week and is near the B.E. point. This Hammer candle on the weekly timeframe will look good after touching into area where price has not been in quite some time. We close like this then we can expect some fresh bulls moving into the next weekly candle. Trade closed: stop reached
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