Clear ethereum bull trap.
Updated
Hello guys, been a while since I posted a chart or an idea.
But I think Ethereum is setting up to be in a beautiful, beautiful, beautiful short position right now.
I spotted many indicator divergences on the Daily about 3/4 days ago but decided to wait to I actually got more confirmation.
Here it is today.
Right now what I've done is mapped this out to Wyckoff Distribution.
Wyckoff was an extremely successful trader who came up with the general principle, as outlined in this "day trader's bible" as
1) Accumulation
2) Markup
3) Distribution
4) Mark down
5) repeat 1-4 over and over
I have reason to believe that we are undergoing Wyckoff distribution.
Volume profiles matchup with the points of significance.
Purely on Wyckoff I am happy with the
1) PSY - Preliminary support, lots of climactic volume
2) BC - Buying climax, Very high buying volume
3) ST - Second Test, low volume second test up
------- PHASE A -----------, sign of trend reversal
1) SOW - sign of weakness, high volume selloff
2) UT - Weak upthrust
3) Retest of the low in SOW
4) Small markup, with generally low volume
-----------PHASE B -------------, CAUSE
1) Where demand is being tested by market manipulators (Wyckoff called this the Composite Man)
Where we are right now.
Key features are the low low low volume markup of prices, clear as day here.
------------PHASE C ----------------
Soon PHASE D will start - where markdown beings, but with weak attempts up to LPSY - last point of supply after which PHASE E starts where high volume sell off begins and prices are markeddown.
I'll add more reasons as to why I think ETHEREUM is a great short right now.
I accidentally left the indicators in on the analysis.
if you could minimise that when looking at the chart that would be greatly appreciated.
Because I have a better Indicator chart waiting
But I think Ethereum is setting up to be in a beautiful, beautiful, beautiful short position right now.
I spotted many indicator divergences on the Daily about 3/4 days ago but decided to wait to I actually got more confirmation.
Here it is today.
Right now what I've done is mapped this out to Wyckoff Distribution.
Wyckoff was an extremely successful trader who came up with the general principle, as outlined in this "day trader's bible" as
1) Accumulation
2) Markup
3) Distribution
4) Mark down
5) repeat 1-4 over and over
I have reason to believe that we are undergoing Wyckoff distribution.
Volume profiles matchup with the points of significance.
Purely on Wyckoff I am happy with the
1) PSY - Preliminary support, lots of climactic volume
2) BC - Buying climax, Very high buying volume
3) ST - Second Test, low volume second test up
------- PHASE A -----------, sign of trend reversal
1) SOW - sign of weakness, high volume selloff
2) UT - Weak upthrust
3) Retest of the low in SOW
4) Small markup, with generally low volume
-----------PHASE B -------------, CAUSE
1) Where demand is being tested by market manipulators (Wyckoff called this the Composite Man)
Where we are right now.
Key features are the low low low volume markup of prices, clear as day here.
------------PHASE C ----------------
Soon PHASE D will start - where markdown beings, but with weak attempts up to LPSY - last point of supply after which PHASE E starts where high volume sell off begins and prices are markeddown.
I'll add more reasons as to why I think ETHEREUM is a great short right now.
I accidentally left the indicators in on the analysis.
if you could minimise that when looking at the chart that would be greatly appreciated.
Because I have a better Indicator chart waiting
Trade active
My first target if 0.08 was reached. Nice! More to come
Note
Might see us at the bottom of 0.078 before a reversal.
only counting 2 waves in this massive dump down.
Not looking promising for bulls.
My plan is to short the bounce, now that we are definitely in a downtrend.
My eyes are on 40 RSI and 60 RSI on the 4 hourly
Note
2 hourly chart here.
More room for upside to reach our second LPSY.
expecting RSI and MACD to follow some sort of pattern like that.
2nd image here gives my end goal targets of the 0.5 and 0.618 fib retrace. They coincide very nicely with horizontal suppport and resistances. Will provide updates as they go along.
As for my position im fully closed out aniticpating a retrace where I will reenter a short position.
Note
ASsuming we bounce to 0.08
I'll see you guys at 0.07 and then 0.065
Note
bounce was nice, we are currently at 0.08, the 0.5 fib retrace and I've filled a small portion of my shorts.
I'll load up more once we hit 0.0816, second yellow at the top, close to 0.618 fib retrace.
Bounce was coming, pretty obvious.
1) climactic volume - high volume bars with minimal candle open or close movement, in this case they were forming hammers, so lots of sell pressure was forcing prices down, but a lot of buyers were ready to soak up the asset.
2) double bottom hammers - ie climactic volume
Note
respecting the PHASE A markdown channel (experimenting with channel and wyckoff from different phases and seeing how they work out)
currently oversold on PHASE D markdown channel, expecting a retrace back into the channel.
I don't see any signs of accumulation or reversal yet.
Playing out to my plan bloody perfectly thus far
Note
Note
Daily MACD and RSI still have a plenty ways to go down.I'm not calling the bottom yet.
my eyes are on 0.065
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