Head and Shoulders formed on 4hr ETH
Updated
A Head and Shoulders also formed on ETH, but it's different than BTC. Notice that instead of getting more of a horizontal neckline as we are on BTC, we are getting this ascending trendline that has KINDA formed(I say kinda because it has some horizontal movement as you can see there) On this we are watching for a break of this 490 area.
On my BTC post I stated that we usually get a move that is the amount from the neckline to the head. In this case of ETH it's about $40. This is important because while on BTC we could get a move slightly past our buy zone(at $7,300 area) to $7,200 before it rebounds. On ETH if this holds true, it will bounce off of 450 and not our 430 buy zone/support zone. We'll want to watch these area's closely and see how they react. If you are worried about being filled, throw a buy above 450 for a move back up to at least the $500 area. And please make sure you read up on the martingale, we will not be going in heavy at these levels.
On the flip side, if this H&S pattern doesn't complete and breaks the resistance line at $530, we should see a push to the $575-600 area.
Don't stress, pick your points and don't use leverage.
Happy Trading,
-Sherem
If my analysis helps, please smash that like button!
On my BTC post I stated that we usually get a move that is the amount from the neckline to the head. In this case of ETH it's about $40. This is important because while on BTC we could get a move slightly past our buy zone(at $7,300 area) to $7,200 before it rebounds. On ETH if this holds true, it will bounce off of 450 and not our 430 buy zone/support zone. We'll want to watch these area's closely and see how they react. If you are worried about being filled, throw a buy above 450 for a move back up to at least the $500 area. And please make sure you read up on the martingale, we will not be going in heavy at these levels.
On the flip side, if this H&S pattern doesn't complete and breaks the resistance line at $530, we should see a push to the $575-600 area.
Don't stress, pick your points and don't use leverage.
Happy Trading,
-Sherem
If my analysis helps, please smash that like button!
Note
Looks like we are starting to see some upward movement, my original call was that it's going to this 550-575 area, just a matter of how we get there. As notated above, it was possible we would get a pull back. For me, it's a sit on your hands kind of situation since I already closed my trade in this area for a decent profit.A way you can possibly play it is putting a buy stop above these recent highs for a move up. But I am not to comfortable doing that right now
Here is my original call for this 550-575 area.
Note
If you did put a buy stop above the highs, you are looking good right now. I would either trail your position with a stop to lock in profit or target these up coming areas
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