ETH - Daily and weekly imbalanceHello Traders and Analysts,
A Note before reading - this is a forecast analysis - based upon our trading strategy. This is tagged long, due to purchasing further increments upon imbalances.
Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities.
Breakdown
1. Note
2. Contents
3. Research breakdown
4. Education recap
5. Information on Lupa.
Master Key for zones
Blue = Monthly
Purple = weekly
Red = 4 Days
Yellow = 16 Hours
Orange = Daily
Dark Green = 8 Hour
Grey = 4hour
Pink = 1 hour
See the original idea May 25th 2021
Weekly Timeframe analysis
Where do we go from here?
Well price will now range within the grey box and offer an opportunity to break down to the daily imbalance, where price will look to test the 4 day imbalance of 0.382% Fibonacci.
Price has a high probability to look to the testing of the weekly imbalance first and then look to short based upon the reactive weekly imbalance.
The structure is still a buy and hold - but do your own due diligence based on your approach*
Below are the monthly imbalances
Firstly using the monthly timeframe, this has provided two key zones of interests for long positions.
(i) the first zone has created a perfect early opportunity where price has firstly established a high of $143X dollars and retested the low - creating an inefficiency between the high and the low. Now from the low test - price has confirmed a strong imbalance where price can now target to create an equal high.
(ii) the second zone which marks an in efficiency - is between $200 - 490, where the monthly zone had created a bearish month - by creating a pathway from the bearish candle high, notice how price closed out the previous wick on the falling pattern back in July 2018. This is the key identifier which price has re-aligned creating a fractal pattern on the weekly.
where;
(i) A bullish fractal is created when the low point is established, with two higher low bars/candles on each side of it.
(ii) A bearish fractal occurs when there is a high point with two lower high bars/candles on each side of it.
Here are the weekly imbalances
Here are the three zones which are imbalances created in the past. Price is currently forming a weekly/monthly imbalance at this moment, however it is difficult to determine without a close. So longs are still activated in a buying pattern upon the long term outlook and short term outlook .
The first zone established - has been created using the previously created all time high from $1100 - $1400- the previous monthly wick has been closed out by the imbalances of the buyers and can become the lowest imbalance but also the strongest to identify where price will able to drop to in a bearish probable scenario.
the second zone is placed above - where price created a retracement from the high established.
Using the Fibonacci tool, price aligns to a low of 50% which touches the zone perfectly. This is a perfect pivot point to complete the overextension sequence using the weekly. [refer to chart ii ]
Chart ii
The bears are coming! - which is normal as part of buying and selling imbalances.
Using the 16 hour timeframe:
Below are the sixteen hour imbalances where - price has shown a good opportunity for price to react to the following zones.
Note the top zone is a Fibonacci zone - as stated in multi timeframes above.
The true zone according to the imbalances are $3100-3500 for a opportunity to short again .
Let price fall and react accordingly to the zones. Await the opportunity for the imbalance wick to close out - where price will be successfully filled.
The Bears came
The price fell to desired reaction level to test $1600-1750 level as expected this aligned with the 61.8% Fibonacci structure and continue to offer discounts to buyers. Yet the 70.5% did not manage to adopt
The reaction occurred as expected as the weekly zone below is the most important established imbalance.
The overall big picture of Fibonacci combined with the imbalances:
Note the 50% & 61.8% of the retracement zones are important here.
Eight hour candles pathway for a potential smaller time forecast
Cross pair analysis
Tracking the closest correlated coins . Ethereum, of course being the 2nd highest coin .
Key:
Bitcoin cash - Orange
Litecoin - Sky blue
Monero - Yellow
Stellar Lumens - Purple.
Using a line chart graph, you can distinctly find where price has shown a similar market structure using imbalances. Notice the pattern formation on the in the two current zones. the correlated assets are providing insights, respective to the pathway desired by price between the new imbalances.
All coins have , the extension pathway has created opportunities here to continue longs - where the weekly zones and monthly zones indicate the buying zones or profit targets for sellers in kind.
Do you enjoy the setups?
Professional analyst with 5+ years experience in the capital markets
Focus on technical output not fundamentals
Position and swing trades
Provide updates where necessary - with new updated ideas tracking the progress.
If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.
Thanks,
LVPA MMXXI
