Ethereum: How to Trade Using the 4H Chart
Yesterday I wrote about a possible buying opportunity based on the daily chart. Please, read this post for a better understanding of how we can trade and why we have reasons to buy.
Today, let's look at the 4H chart. The price stays below SMA200 but the market stays bearish. We didn't need a strong downward movement toward the key support, it tells us about the weak bears. We have a new swing low higher than the previous one. It allows us to draw a local uptrend line. We will use it as a signal line for the bullish market.
We don't have reasons to open long trades right now, if we talk about possible trade opportunities in the 4H chart. But we will have a buy signal based on a trend reversal. When the price breaks SMA200, it will give us a bullish signal.
You can see an example of the long trade, but for the exact entry point, we should wait for the swing high above SMA200. As for the exit points, they should stay the same.
If the price breaks the local uptrend line, we should be ready to see a new downward movement toward the support. The price action at the support will give new trade opportunities as well.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Today, let's look at the 4H chart. The price stays below SMA200 but the market stays bearish. We didn't need a strong downward movement toward the key support, it tells us about the weak bears. We have a new swing low higher than the previous one. It allows us to draw a local uptrend line. We will use it as a signal line for the bullish market.
We don't have reasons to open long trades right now, if we talk about possible trade opportunities in the 4H chart. But we will have a buy signal based on a trend reversal. When the price breaks SMA200, it will give us a bullish signal.
You can see an example of the long trade, but for the exact entry point, we should wait for the swing high above SMA200. As for the exit points, they should stay the same.
If the price breaks the local uptrend line, we should be ready to see a new downward movement toward the support. The price action at the support will give new trade opportunities as well.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Disclaimer
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