MarcPMarkets

ETHUSD Perspective And Levels: Double Bottom 1 Hour Chart.

BITFINEX:ETHUSD   Ethereum / Đô la
ETHUSD             Update: Bearish break of recent triangle muted by double bottom formation at 190 on the hourly time frame. This signifies strength, but there are new minor resistance levels ahead.

Less than 1 week away from the August 1st hard fork in BTC             . As we get closer to that date, I believe volume will taper off even further. Keep in mind the bigger picture is still bullish in terms of price structure, and price has to break below 163, and back into the 130s in order to render that structure void.

One of my favorite reversal formations appeared: The double bottom at 190. This is a perfect example of what I like to see in order to take a position. What prevents me from doing so is this formation did not appear within my price range of 183 to 163, AND I am not taking any new positions until 8/1 is out of the way. (If we were not dealing with this BTC             drama, this double bottom would have been a buy signal for me). Double bottoms within a broader bullish environment indicate strength and price stability, and offer great reference points to measure risk from.

Since the bearish break of the recent triangle, there are 2 minor resistance levels to consider. These are likely to break in my opinion because they are relevant to the bearish swing coming out of the triangle which is counter trend in light of the broader bullish structure. 205 which is the .382 of the bear swing, and the 215 to 221 resistance zone which is relative to the .618 of the bear swing. Also the 212 area a previous major support, may now act as a resistance (inversion). A break of these levels, especially the 221 area, will signify that buyers are in control. Keep an eye on these moving forward because they can also present day trade opportunities if shorting this market is within your trading plan.

Since the double bottom held, the small upswing which is currently in play offers a minor support at 195 which is the .618 of the up leg. For those interested in getting a lower risk entry on the long side, this would be a good price, using 188 as a stop.

In summary, the appearance of the double bottom at 190 shows that the recent bearish break is nothing to be excited about. Unless a
formation like this appears within the boundaries of my plan, I prefer to stay out, especially with 8/1 less than a week away. Keep in mind if price breaks below the 190 support, we can see the 183 to 163 zone and that is where I am more interested in taking risk.

Comments and questions welcome.


Marc Principato |Author: Analyze Any Financial Market Like The Pros Using Price Action| http://www.Priceactiontraders.net
I cashed out completely becouse threre is a better chance for position in near future and if market goes up from current level its nothing to lose to catch the upgoin train
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MarcPMarkets PRO cryptofan07
@cryptofan07, I think the closer we get to 8/1, the lower the volume and more random the movement. We will probably see all types of patterns which will have little to no follow through.
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Marc absolutely right the market is ready to go up but segwit is holding it and it has unpredicted movement
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double bottom forming triangle equilibrium what we saw couple days behind its actualy the balance on that level that will brakeout soon. I guess it brakes out downhill but if I know it 100% I woud be millionaire
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this is a very good picture of a current market. I see the price moving from 195 to 205 levels so from here is very possible brakeout to lower 180s.
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We've now seen a triple bottom and lower highs with a flat bottom. Although I am unable to identify any real sentiment over the short term. Are we likely just seeing fluctuation from day trades, resulting in no real movement?
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MarcPMarkets PRO FallingReign
@FallingReign, it is lack of participation. Low volume. No big players are going to have the conviction to do anything either way until uncertainty is out of the way.
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Could you please guide me to a good article for learning evaluation of risk-return ratio please? Is it simply evaluated by this ratio ? :

(next resistance upper level - entry point) / (entry point / next lower support level) ?

Thank you.
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MarcPMarkets PRO farrokh.ansari.1977
@farrokh.ansari.1977, reward/risk is a way to justify if the trade idea in question is worth taking. If you are a day trader for example, 1:1 trades are very common, meaning you are willing to lose 5 to make 5, but your success is then more dependent on a higher win rate which means you have to be able to execute a very solid strategy. On longer time horizon strategies, like swing trades, where trade potential is usually much greater, usually 2:1 or greater makes more sense. Risk 20 to make 40. Reward to risk has nothing to do with determining which way the market is going to go. I don't know any specific books that explain this. Try googling, I'm sure there are some good articles.
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I am not so sure that this is a true double bottom. If the market conceited double bottom, we wouldnt be under $200 for almost $24 hours.. The price action is much weaker then last time we were here. The shorts are in full control as evidenced by the massive wall at $200. Below $200 is bearish.
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