With price at all time lows and a pattern emerging looking like an Adam and Eve bottom, the risk to reward has a lot of potential (considering price won't move to 0) with the risk being low and the potential rewards to be rather outlandish considering the position in the market.
The fib tool is using a method I've come up with using the positive powers of two - (X-Y)^{2^1, 2^2, 2^3, 2^4, 2^5, 2^6, …}. These are our profit areas as well as future support and resistance levels, the higher the power the lower the probability. Assume each level being exponentially harder than the previous as each level has an absolute change of 100%.
I tend to overlay all of my charts with a combination of volume and momentum indicators to help assess patterns and strength behind them as to ensure higher probability chance of success. I do not use these indicators as my primary resource in trading, they are the last thing I pay attention to before execution and the first thing I look at when scanning for potentials.
OBV and RSI is used to show divergence and trend changes, ATR to see how strong movement is.
The zones in green are explained in my other ideas linked below 'Areas of liquidity interest & Impulse gaps' and 'LTC & BTC Multi Idea'. My powers of two strategy is linked into the idea 'Eth is a monster' (I haven't explained how it works until now).
Happy trading and don't forget to manage your risk.
The fib tool is using a method I've come up with using the positive powers of two - (X-Y)^{2^1, 2^2, 2^3, 2^4, 2^5, 2^6, …}. These are our profit areas as well as future support and resistance levels, the higher the power the lower the probability. Assume each level being exponentially harder than the previous as each level has an absolute change of 100%.
I tend to overlay all of my charts with a combination of volume and momentum indicators to help assess patterns and strength behind them as to ensure higher probability chance of success. I do not use these indicators as my primary resource in trading, they are the last thing I pay attention to before execution and the first thing I look at when scanning for potentials.
OBV and RSI is used to show divergence and trend changes, ATR to see how strong movement is.
The zones in green are explained in my other ideas linked below 'Areas of liquidity interest & Impulse gaps' and 'LTC & BTC Multi Idea'. My powers of two strategy is linked into the idea 'Eth is a monster' (I haven't explained how it works until now).
Happy trading and don't forget to manage your risk.
