Hi friends! Let's take a look at Ethereum! If you recall from my last post, we were reviewing the symmetrical triangle, as price action traded into the apex. During that analysis, I gave you two price targets — each of which would have applied, depending on the direction of the symmetrical triangle breakout. During that analysis, I said "If an upside breakout occurs, ETH will probably run up the 23.6% retrace. If a break to the downside occurs, the 50% retrace should be the next stop." As you can see, an upside breakout has occurred, and ETH has gone well beyond my 23.6% retrace target. No matter how you slice it, that's a winning call. I told you to watch for the direction of the breakout, and then I gave you two solid targets. If you would have traded that, and went long ETH when it broke the top of the symmetrical triangle, LIKE I SAID, you would have recognized a 13% gain. Someone please explain to me, how that is a losing call. In a symmetrical triangle, it could break to the upside, or it could break to the downside. Given the technicals at the time, a downside breakout seemed to be the most likely scenario. However, I recognized the fact that an upside breakout was possible, and I essentially told you to react when you saw the move (in a theoretical trade.) I guess the old saying applies "you can lead a horse to water, but you can't make it drink." I led you to the water. Did you drink it?
Allow me to draw another quote, from my previous post, to put the naysayers to rest. "Since a breakdown has not yet occurred, I've estimated where a breakdown might happen...Just FYI, this isn't a real target yet. This is only for illustrative purposes. It won't be a legitimate target, UNTIL WE ACTUALLY SEE A BREAKDOWN OCCUR. If a break to the upside were to occur, an upside target could be generated in similar fashion. Looking at the chart, we can see that it's really testing the top of that triangle. So anything is possible. We just have to wait and see."
Legendary traders, like myself, know how to react to the markets. We find price targets, and wait for confirmation moves, to know that the market is going to move in the direction the target. Amateur traders seem to have a difficult time understanding that concept. If you want to be a day trader, you have to react to the market. That's why I give upside and downside targets. Day traders are nimble — buying and selling and flipping with the market as required. My sentiment could quickly change from bearish to bullish, if that was justified by price action. The recent upside breakout, of the symmetrical triangle, gave reason to utilize my upside target. A 13% gain has occurred since then.
Looking at the chart, we can see that ETH is now a bit overextended to the upside. A consolidation, or a slight pause would be healthy for a later continuation to the upside. After having a long trade from the breakout, now is the time that I would personally take some profits off of the table. We've had a run well above the target, and a small red candle is being printed on the chart. I would look for a pullback, perhaps to the 23.6% retrace, or the 20 EMA (in blue) before reconsidering another bullish trade. Momentum continues to expand to the upside, increasing the likelihood of sustained buy-side pressure in ETH. Ultimately, a test of the bottom of the green channel could now be in play.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-MPC loves you-
-JD-
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UPDATE: ETH appears to be building a bull flag. Look for a continuation higher, should the bull flag break to the upside. A test of the bottom of the green channel, now seems imminent.
MagicPoopCannon I will doubt you no more! May I ask, do you still think it's going to retrace to the 23.6%? At around 1050 I believe?
Jucsik
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I am not a legendary trader, I havent been around since 1900. I know some basic stuff. I follow peolpe to learn a bit more. As I see it, most of the charts published are either "MOON", or more or less complicated descriptions of "you must be very careful now, and watch the price. If it goes down, it could go down even more, but it could bounce back during the fall. I think it will go down, but hey, nothing is sure, it could go up. If it goes up, you have to watch if it goes up more, because it could also fall after going uo just a little. But if it goes up really, it could go up even more. However, that could well be just a correction before other types of movements. I see triangles, heads, shoulders, and flags. Lets see what will happen." I must admit that it is hard to go wrong with that :D
Anyhow, I am grateful for any kinds of charts that people share. They dont have to share it, but they do. They reveive feedback, I receive ideas, and see how people think.
If someone does not agree with certain analyses they dont have to check and read it.
If someones style makes you tear off your face, again, you dont have to read it.
If you want very precise analyses, you can pay for it, or learn how to do it yourself.
But since these are, as their names say, "ideas", and on top of that free of charge, I think we shouldnt hate or fanatically love anyone, just be grateful for shared work. It is financial investment and business.
But I know that does not work, because its real life, the internet, emotionally chaotic stuff all over, and trolls and haters and fanatics. And its easy to be egoistic, or blame or damn others here. Its anonym.
I will continue to follow anyway.
cryptoexcedrine
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@Mirilass, its not about being right or wrong. It is about having plan "A" if it does this or, plan "B" if it does that and even a plan "C" if it just goes sideways. Great traders don't predict, they plan. Something I am trying to grasp. Hope that helps.
WakingKorean
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@Mirilass, Yes, I find it hard to call "it could go up or down" giving someone a "winning trade". Well, duh. But as @cryptoexcedrine says, it's about having a plan across scenarios, so that's why I'll still read MPC throughout the bragging :)
mvc64200
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lol
Here is my wonderful TA, Price will go UP or DOWN and when you see it's going down remember I told you before and when you see it's going up remember I told you before
MagicPoopCannon
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@mvc64200, I told you to watch for the direction of the breakout. If you would have read the analysis, you would have known that. If you can't make money, with that perfect information, that's not my problem. Thanks for commenting.
-Magic-
SwissWebTrader
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@mvc64200, yes, why u dont sell before it goes down and buy before it goes up with all that perfect information ! ;)
EtherSwinger
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@mvc64200, that's how you trade the symmetrical triangle!!!
You're the horse that doesn't drink.
obzerv
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You smelly poo.
cheretic
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Great unbiased analysis as ever MPC. I see the formation of a rising wedge with this new high tho. i still feel like ETH owes a C wave to finish its correction.