Hey Traders and Crypto lovers!

Lets go back to basics.

At the end of the day the most effective and reliable way to trade is using price action history. Support and Resistance.

All these flashy indicators and patterns are helpful for sure, but if you take them away, the chart becomes very easy to read just with simple horizontal lines put across it.

The most important thing to remember if you are trading price action is the time you want to stay in the trade.

Let me explain - 

This is Ethereum on the weekly time frame.

I have drawn 2 horizontal lines on the chart in white.

I can be fairly sure that if Eth closes this weekly candle above the first line, then it will most probably reach the 2nd line.

But remember!!! This is the weekly chart, so it could take its time to get there. So you would need to be patient with the trade. 

This is Ethereum on the 15 min chart. 

There are 3 lines here. If you buy on the bottom line you can easily mitigate your risk by a stop loss slightly below.

Then you can sell at the middle or top line.

This is the 15 min chart, so you can expect this to happen in a day.

The most important thing to remember though, is to stay on the same time frame. 

So if you started on the 15 min chart, then you should stay there, and your trade should be a short one.

Its simple yet very effective! 

But i can't help myself, lets add in some Moving averages  -

Well what about that, the 200 MA on the 15 mins is moving in on our horizontal bottom line, looks like a trade is coming my way. 

Happy Trading!