Sirwin
Sirwin
Too far ahead of itself - opportunity for lower targets

Rebalancing .... having a plan. Planning it out


In a nutshell, I think Ethereum should be going down soon.  There is only one chart for today's post but if you'd like I can employ the triple screen or have as many time frames breaking this down as possible.  

This is the trade: 

Max Risk: Stop 1975

Target 1: 1645

Target 2:  1439

The market runs on currents that are dependent on supply and demand, and each rectangle here depicts some element of supply/resistance or demand/support.  Often times there is a mixture of both, and thats what makes the market trade sideways.  

I could be wrong, and it can continue climbing.  But what if a short selling opportunity presented itself here.

If anything, shorting ETH would grant us with the opportunity to acquire more at a cheaper rate. And we can make some gains on the way down.  

I have color coded each zone to indicate where I would like to short it.  Where I'd like to cover.  And where is the best location to finish the trade

Ethereum Trading Plan

In the first wide yellow rectangle on the top, you can see two bear origins.  One on the left side, which was in fact a great zone to be selling short.

The one on the right side is with ?? and that is our current position at ETH $1,816.50 per coin.  

The trade here is that we have come into a level that is a little too far up on the curve and as ETH had acted before, it was not able to sustain many price increases above 1815-2000 before, but the simple fact is that it had much more energy back in August, and the technical backdrop is different with banks having issues

The simple moving average or blue sloping line we have is set for 50 time periods or 50 days, and after some time, it should adjust to the grey area that says Flash Point- Moving average - that is near 1650.  That would set us up for our first short sale target 1625.

With these potential downtrends in price getting stronger along the way it provides sellers to take advantage of "air pockets" where downward moving price can dig through key levels.  Another way of saying that is when price proceeds to move through an important level the next step would be much further along the trend, thus creating an "air pocket" or opportunity to move without much interruption to another price point far away.  

If price breaks through 1800, from there the probability gets greater of hitting our eventual targets of 1650 and 1439, but we should take it one candle at a time.  

How do you rate this article?

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CurrencyWave
CurrencyWave

I am a chart analyst who likes to trade a hybrid day-trade to swing trade timeframe


EthereumMultipleTimeFrame
EthereumMultipleTimeFrame

Journal of trade setups. It filters the daily, 4 hour and 1 hour time frame. How we use multiple time frames to filter out the high quality set ups from low ones. The journal uses more than 3 time frames. This is a journal of swing trading with a valid set up and proof of concept. The journal focuses on whether a higher time frame aligns with the lower time frame to profit from a long position or a short sale. The journal also notes the position of a swing high and swing low on the price curve.

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