ETHUSD : Buy opportunity (daily support reached)
Dear fellas, the price action for 
ETHUSD has reached the daily support (i.e. around 180.35) and slightly bounced from this zone. This means buyers are active and willing to buy for this price what should be considered by traders as a good buy opportunity (entry price around 180.35).
Overview: since the end of July, the price action seemed to be consolidating in a range between a weekly support (around 169.85) and a weekly resistance around (i.e. 210.61). We are currently in the lower part of the range, but a downward movement towards the weekly support has to be considered by traders when entering into this position.
Risk management: to anticipate a potential downward movement and considering the weekly support (around 169.85) not so far, a tight stop loss can be set around 176.18 which is just below the Nov, 15th low. Considering the actual entry price (i.e. around 180.35) a first profit target can be set around the daily resistance (i.e. 191.89). A second profit target can be set around the weekly resistance (i.e. 210.61) where we should see some rejection by sellers. Considering the initial stop loss and the first profit target, this gives traders a decent R/R ratio of about 3.05.
My Trading Principles[reminder]:
- Risk/Reward ratio: since it is difficult to predict every market movement, it is suggested for traders to only look for trades with a R/R ratio of at least 1:3.
- Stop loss: in addition of the initial stop loss, if the price actually goes as predicted, traders should keep a trailing stop to keep some profit.
- Position Sizing: it is suggested for traders to stick to their position sizing strategy. As a rule of thumb, most retail investors risk no more than 2% of their investment capital on any one trade.
"Remember, plan the trade, trade the plan. Build that discipline."
I will keep updating this trade according to the future price action.
Fellas, please support this idea with your likes, thanks.
Best regards,
You can also follow me on :
=> Telegram : t.me/joinchat/Ep5oUhfH
=> Twitter : twitter.com/JordanBadiabo
=> LinkedIn : linkedin.com/in/jordanbadiabo
=> Instagram : instagram.com/jordan.badiabo
ETHUSD has reached the daily support (i.e. around 180.35) and slightly bounced from this zone. This means buyers are active and willing to buy for this price what should be considered by traders as a good buy opportunity (entry price around 180.35).Overview: since the end of July, the price action seemed to be consolidating in a range between a weekly support (around 169.85) and a weekly resistance around (i.e. 210.61). We are currently in the lower part of the range, but a downward movement towards the weekly support has to be considered by traders when entering into this position.
Risk management: to anticipate a potential downward movement and considering the weekly support (around 169.85) not so far, a tight stop loss can be set around 176.18 which is just below the Nov, 15th low. Considering the actual entry price (i.e. around 180.35) a first profit target can be set around the daily resistance (i.e. 191.89). A second profit target can be set around the weekly resistance (i.e. 210.61) where we should see some rejection by sellers. Considering the initial stop loss and the first profit target, this gives traders a decent R/R ratio of about 3.05.
My Trading Principles[reminder]:
- Risk/Reward ratio: since it is difficult to predict every market movement, it is suggested for traders to only look for trades with a R/R ratio of at least 1:3.
- Stop loss: in addition of the initial stop loss, if the price actually goes as predicted, traders should keep a trailing stop to keep some profit.
- Position Sizing: it is suggested for traders to stick to their position sizing strategy. As a rule of thumb, most retail investors risk no more than 2% of their investment capital on any one trade.
"Remember, plan the trade, trade the plan. Build that discipline."
I will keep updating this trade according to the future price action.
Fellas, please support this idea with your likes, thanks.
Best regards,
You can also follow me on :
=> Telegram : t.me/joinchat/Ep5oUhfH
=> Twitter : twitter.com/JordanBadiabo
=> LinkedIn : linkedin.com/in/jordanbadiabo
=> Instagram : instagram.com/jordan.badiabo
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.