ETHUSD Final Capitulation
This is to redeem myself after that last call on ETH... quite wrong - however a good reminder of why we set stop losses and only trade extremes which allows us to cut losses quickly.
Classic continuation setup here today on ETHUSD with a symmetrical triangle.
With this fear and capitulation it creates a strong trend which fill follow through its course (with each consolidation forming a continuation pattern, usually a symmetrical triangle) until there is a confirmed bottom with buy volume filling in and little to no selling/rapid drops. I will post a new chart when I see that forming.
Most important to look for to confirm a symmetrical triangle continuation pattern is descending volume favoring the side it is moving (in this case selling), which is happening. Further, since our drop from $180 there has formed a hidden bearish divergence on RSI & MACD, shown in red. This is where the indicators make higher highs, but the price makes lower highs, indicating strength is worn out and price will soon fall.
I'm watching the $85 support line, which is the bottom of the previous $85-$100 range back in May of 2017.
1) Symmetrical Triangle
2) Hidden bearish divergence on 4H RSI & MACD
3) Descdending volume, favoring sell side, with recent spike on price drop.
Moving Forth.
Classic continuation setup here today on ETHUSD with a symmetrical triangle.
With this fear and capitulation it creates a strong trend which fill follow through its course (with each consolidation forming a continuation pattern, usually a symmetrical triangle) until there is a confirmed bottom with buy volume filling in and little to no selling/rapid drops. I will post a new chart when I see that forming.
Most important to look for to confirm a symmetrical triangle continuation pattern is descending volume favoring the side it is moving (in this case selling), which is happening. Further, since our drop from $180 there has formed a hidden bearish divergence on RSI & MACD, shown in red. This is where the indicators make higher highs, but the price makes lower highs, indicating strength is worn out and price will soon fall.
I'm watching the $85 support line, which is the bottom of the previous $85-$100 range back in May of 2017.
1) Symmetrical Triangle
2) Hidden bearish divergence on 4H RSI & MACD
3) Descdending volume, favoring sell side, with recent spike on price drop.
Moving Forth.
Trade closed: target reached
Target of $85 reached perfectly, trade completed.A nice bounce yesterday on shorts closing and longs opening, however, as I said above I will update as I see a bottom forming and this is not it yet. We are still below major resistance of $100 and in bear territory.
A break above $100 on good volume would suggest a turnaround to me.
Note
This suggests a turnaround.
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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.