ETHUSD: Potential short setup
Updated
In the chart ETH: Arise Phoenix, i showed a potentiual bullish setup for ETH.
I managed to go long literally on the bottom wick ($644) however something didn't feel right. The breakout lacked luster. As a result, at $744 I took profit.
Also I noticed that ETHBTC was showing 4-hour bearish divergence, so at $700 I flipped reverse short and set a stop above the recent high.
Why?
Right hand side chart: ETHUSD 4-hour
This chart pattern. Ether has a head/shoulders developing with a downside target in the $500 range.
Also overlaid on the chart is a fractal from the 1.4k top showing breakdown. The market symmetry is there. We have a good potential setup for short from 700 with a stop at 744, targeting the 500 range.
Left hand chart: ETHUSD daily
Zooming out whats more scary. If this short setup plays out, then we could go near the lows. There's potential for a much bigger head/shoulders on Ether with a lower target. I don't like to make predictions so far out but it is a possibility and one I will be watching out for.
Risk management
I managed to go long literally on the bottom wick ($644) however something didn't feel right. The breakout lacked luster. As a result, at $744 I took profit.
Also I noticed that ETHBTC was showing 4-hour bearish divergence, so at $700 I flipped reverse short and set a stop above the recent high.
Why?
Right hand side chart: ETHUSD 4-hour
This chart pattern. Ether has a head/shoulders developing with a downside target in the $500 range.
Also overlaid on the chart is a fractal from the 1.4k top showing breakdown. The market symmetry is there. We have a good potential setup for short from 700 with a stop at 744, targeting the 500 range.
Left hand chart: ETHUSD daily
Zooming out whats more scary. If this short setup plays out, then we could go near the lows. There's potential for a much bigger head/shoulders on Ether with a lower target. I don't like to make predictions so far out but it is a possibility and one I will be watching out for.
Risk management
- Never risk more than 2% of account to stop on one trade,
- Be careful of taking loads of correlated trades.
- Crazy advanced bearish or bullish calls are just that. Crazy. Take them one day at a time.
Note
Breaking down .. Note
The big head & shoulders has also broken down now ...Trade closed: target reached
Left chart profit target reached! :panic: :O
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.