courtesy of graur codrin
Hey, what's up with Ethereum?
Strategy
A couple of weeks ago, I posted a 4-Hour chart on ETH for a pullback using the Elliott Wave Principle, and an alternative Daily chart using a buy on the dip strategy.
Elliott Wave and Moving Averages source
Elliott Wave Principle
Key to market behavior - "The market has a law of its own. It is not propelled by the news."
A typical pullback is a three-wave decline which would be the correction of the five-wave advance. Based on one rule of wave principle, I know where this count becomes wrong. Wave (2) cannot retrace more than 100 percent of wave (1). So I draw a line at the start of Wave (1). If the decline surpasses that level, I know that my count is incorrect. "Elliott wave analysis is one of few methodologies that give us an absolute number for our protective stop." Basic money management rules can't answer the question: at what point is my trade wrong? The wave principle does.
ETH Trend Blowout
My 4-hour chart on ETH a couple of weeks ago was wrong in the impulsive wave count. I didn't allow for an extended 5th wave. You will notice in the daily chart below the correct count. Invalidated trend: Price action blows through the MA50 and heads toward MA200.
Buying on the Dip
Bulls like to buy dips when the markets are trading above the 200-day moving average, while bears sell rallies short below it. Bears usually win below this line, as the 200-day becomes longer-term resistance. Bulls buy pullbacks to the 200-day as long as the price stays above it.
This line is one of the biggest signals in the market telling you which side to be on. Bull above, bear below. Bad things happen in stocks and markets when this line is lost.
Notice on today's chart below, we are at that critical area to watch.
Daily Chart on Coinbase
Happy trading! - 3rd Dog
I’m not registered or licensed in any jurisdiction whatsoever to provide investing advice or anything of an advisory or consultancy nature and are therefore are unqualified to give investment recommendations. Always do your own research and consult with a licensed investment professional before investing. This communication is never to be used as the basis of making investment decisions, and it is for entertainment purposes only.
p.s. When I first started learning and earning in the crypto world, I found links people shared to be very helpful. I hope these links will be helpful to you as well. It's a win-win situation for everyone participating.
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