IMPORTANT: I'm not saying that this scenario will be the same. As a trader, I consider my job, to find objective patterns in historical data, and define if those patterns are happening right now so I can create a trading setup before that situation is happening. IF the situation is not evolving as expected, I must try to avoid opening positions on the market, and in case I do open positions on the market and the situation goes against me, is also my job to cut losses and protect my capital. With all that said, let's start with today's post.
The title of today's post is "All bull runs in ETHEREUM started with a double bottom". To see if that's true, let's take a look at the logarithmic chart.
There we can see 3 clear bullish waves, but now we will focus on the conditions before that happened.
The conclusion that I can make is that is a consistent pattern, to observing double bottoms before new bull runs, and that's the same scenario that is happening right now.
Does that mean that we will observe the same resolution?
Let me write the answer in capital letters: NO IT DOESNT MEAN THAT. Remember that nobody knows what the price will do next, so my objective with the 2nd part of this post is: In case the price evolves in the same way. How can I trade that? and IF the price does not evolve in the same way. How can I avoid entering the market?
Let's start with the 2nd part of the post: Possible Setups.
So, what I did was go through all the situations that were defined before, and I created a template for the setup I'm planning to take. It looks like this:
It's composed of 4 filters:
1) We need to observe a double bottom
2) We need to observe the most relevant trendline of the current broken.
3) We need to observe a correction that retraces around 0.38% of the previous impulse
4)IF that happens, I will set pending orders on a new local high, stop loss below the end of the correction, and as a minimum target, I will define the previous ATH zone.
The risk I will be using on this setup is 3% of my trading capital on the stop loss. It's very important to say that I don't care what the price will do next. I'm sure that if the filters that I have defined before happen, I will trade, otherwise, I will not develop new positions.
I hope this post was useful, feel free to share your view and charts in the comments! It's always great to have a positive discussion about ideas. Long life, to the tradingview community :D
The title of today's post is "All bull runs in ETHEREUM started with a double bottom". To see if that's true, let's take a look at the logarithmic chart.
There we can see 3 clear bullish waves, but now we will focus on the conditions before that happened.
The conclusion that I can make is that is a consistent pattern, to observing double bottoms before new bull runs, and that's the same scenario that is happening right now.
Does that mean that we will observe the same resolution?
Let me write the answer in capital letters: NO IT DOESNT MEAN THAT. Remember that nobody knows what the price will do next, so my objective with the 2nd part of this post is: In case the price evolves in the same way. How can I trade that? and IF the price does not evolve in the same way. How can I avoid entering the market?
Let's start with the 2nd part of the post: Possible Setups.
So, what I did was go through all the situations that were defined before, and I created a template for the setup I'm planning to take. It looks like this:
It's composed of 4 filters:
1) We need to observe a double bottom
2) We need to observe the most relevant trendline of the current broken.
3) We need to observe a correction that retraces around 0.38% of the previous impulse
4)IF that happens, I will set pending orders on a new local high, stop loss below the end of the correction, and as a minimum target, I will define the previous ATH zone.
The risk I will be using on this setup is 3% of my trading capital on the stop loss. It's very important to say that I don't care what the price will do next. I'm sure that if the filters that I have defined before happen, I will trade, otherwise, I will not develop new positions.
I hope this post was useful, feel free to share your view and charts in the comments! It's always great to have a positive discussion about ideas. Long life, to the tradingview community :D