ETHEREUM (ETHUSDT) DAILY BUY&SELL TRADE SETUPS 2020/12/26
Updated
SHORT TRADE SETUP : FALSE BREAKOUT
To open a short position, we are waiting for price to break above the horizontal resistance @ $670 and then fall back down.
Trade Entry Confirmation:
1. Price Action: Price breaks above the high of $670 and then rapidly falls below $670, forming a bull trap
2. Candlestick Pattern: A breakout candlestick (candle close above $670) followed by a breakdown candlestick (candle close below $670)
2.1 Ideally breakout and breakdown candlesticks are consecutive candles, but can also have a few candles in between the two
2.2 Ideally the breakdown candle has a large candle body with very small wicks
3. Volume: Above average volume ( volume above the average volume line) on both breakout candle and breakdown candle, ideally the breakdown candle's volume is a local high
4. MACD: MACD histogram topping out, as indicated by the histogram becoming less positive (color changing from dark green to light green)
Entry Confirmations:
Ideally we get all confirmations for an entry, but sometimes we might take a trade when we have fewer confirmations. The more confirmations, the higher the win probability, though it also means you miss out on some profitable trades if you're only taking trades when we have all confirmations. It's up to your own risk appetite to decide when you feel comfortable entering a trade. You can also adjust position size based on level of conviction, entering a bigger position when there are more confirmations. Make sure you practice proper risk management and money management.
Trade Management:
I have put in preliminary Stop Loss and Take Profit on the chart, but these will depend on how the entry setup forms, so I will update when we have a valid entry signal.
Stop Loss: We typically put a SL around the high / low of the entry area, though we might adjust based on market conditions such as high ATR ( average true range ) or long wicks.
Take Profit: We typically aim for at least a 2:1 RRR (risk reward ratio), but you can decide to take profits earlier, adjust stop loss as we get into profit, take partial profit, leave a small portion for larger gains, etc. How you want to manage depends on your own risk appetite and what you are comfortable with.
MAKE SURE YOU FOLLOW ME SO THAT YOU DONT MISS TRADE SIGNALS, GET THE LATEST SL AND TP LEVELS, AND FOLLOW THE TRADE PLAY OUT IN REAL TIME!
DISCLAIMER: I'M NOT A FINANCIAL ADVISOR AND THIS IS NOT FINANCIAL ADVICE, AND I WILL NOT BE RESPONSIBLE FOR YOUR WINS OR LOSSES, DYOR.
To open a short position, we are waiting for price to break above the horizontal resistance @ $670 and then fall back down.
Trade Entry Confirmation:
1. Price Action: Price breaks above the high of $670 and then rapidly falls below $670, forming a bull trap
2. Candlestick Pattern: A breakout candlestick (candle close above $670) followed by a breakdown candlestick (candle close below $670)
2.1 Ideally breakout and breakdown candlesticks are consecutive candles, but can also have a few candles in between the two
2.2 Ideally the breakdown candle has a large candle body with very small wicks
3. Volume: Above average volume ( volume above the average volume line) on both breakout candle and breakdown candle, ideally the breakdown candle's volume is a local high
4. MACD: MACD histogram topping out, as indicated by the histogram becoming less positive (color changing from dark green to light green)
Entry Confirmations:
Ideally we get all confirmations for an entry, but sometimes we might take a trade when we have fewer confirmations. The more confirmations, the higher the win probability, though it also means you miss out on some profitable trades if you're only taking trades when we have all confirmations. It's up to your own risk appetite to decide when you feel comfortable entering a trade. You can also adjust position size based on level of conviction, entering a bigger position when there are more confirmations. Make sure you practice proper risk management and money management.
Trade Management:
I have put in preliminary Stop Loss and Take Profit on the chart, but these will depend on how the entry setup forms, so I will update when we have a valid entry signal.
Stop Loss: We typically put a SL around the high / low of the entry area, though we might adjust based on market conditions such as high ATR ( average true range ) or long wicks.
Take Profit: We typically aim for at least a 2:1 RRR (risk reward ratio), but you can decide to take profits earlier, adjust stop loss as we get into profit, take partial profit, leave a small portion for larger gains, etc. How you want to manage depends on your own risk appetite and what you are comfortable with.
MAKE SURE YOU FOLLOW ME SO THAT YOU DONT MISS TRADE SIGNALS, GET THE LATEST SL AND TP LEVELS, AND FOLLOW THE TRADE PLAY OUT IN REAL TIME!
DISCLAIMER: I'M NOT A FINANCIAL ADVISOR AND THIS IS NOT FINANCIAL ADVICE, AND I WILL NOT BE RESPONSIBLE FOR YOUR WINS OR LOSSES, DYOR.
Note
Price is now at 200EMA, let’s see how price action plays out in this area and if we get an entry signal.Note
Risk: med-highPrice action: price bouncing off 200EMA, though ideally test both 200SMA and 200EMA
Candlestick: Multiple Candle Break, though ideally break candle has large body and above average volume
Volume: We do have a candle of candles with above average volume, though ideally we’d want the break candle to have above average volume
MACD: MACD histogram has bottomed, though ideally it would be near the bottom and not already in green territory.
Note
If you’ve been following in recent days, you will notice that the trade setups that we’ve had haven’t been perfectly ideal setups and thus I’ve rated them as high risk. This long entry is the same, as while we have all 4 confirmations, all four could have been better.
Again, for those aggressive traders, can enter long. For more conservative traders, can enter with a partial position or pass up and wait for next trade.
Note
This is a high risk high reward trade. If price is able to hold here, we could potentially move all the way up to 670 and maybe even higher, giving us a potential 7:1 RRR. But since the entry conditions werent ideal, the win probability on this is lower than average. A lot will depend on if btc can hold prices here and not break down. Again, high risk high reward. You make the decision. Happy Holidays.
Note
Btc has held and in fact is rallying hard, and our eth long is also doing quite well so far. If you haven’t already, feel free to take partial profit, move sl to breakeven, etc. according to your own trade management rules. Still haven’t seen the big pump though, which would give us tremendous profits. Congratulations to those who took the trade and are in profit!Note
Wow! Took a while, but price finally pumped hard. We’re up 4:1 RRR so far, congrats to all who made awesome profits on this trade. Price is likely to continue up from here, but make sure you take profits. Follow me to get more live trades like this one!Note
For those who missed this trade, there might be another opportunity to long if price once again tests the 200MAs (currently around 625) and price holds and bounces off. Will put out a new post with the details. Click the follow button so you’ll get it as soon as it’s sent out. Cheers and congrats to all who made handsome profits on this trade.
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