ETHUSD Possible Short Opportunity
Updated
Bearish Bat Pattern on the H4
As Harmonics Pattern mostly seemed like counter-trend trading with Completion Point D (the place you enter your trade order), a price stretched from Point C, where after passing Point B some traders may have the impression that a change in trend is underway. How I like to determine trend is based on a higher time frame than the one I am trading on.
In this example, I am placing my order on the H4 and this time frame gives me a nice looking Bat Pattern (visually the pattern does look skewed), therefore I consider trend using the the H12 or daily, sometimes I go even higher just to see the "Big Picture" that most people will miss because they are so fixated at the time frame they are trading at. It is important to go to various time frame so you know exactly where the trend is that will help you with managing your trade after entry. It is common to see traders getting solid entries but not sure what to do after that, not knowing how to exit the trade for profits or for loss.
I also look for trade that satisfy at least 3 of my strategies/methods to enhance the odds of the trade working out. Be very picky with your trades and dont fall victim into FOMO. Remember, skills and knowledge only accounts for 40%, the other 60% depends on your psychology and emotions.
Trade Setup:
Entry - Within the Sell Area (at Point D if you are more conservative)
SL - 206.5
TP1 - before 192
TP2 - before 184
TP3 - before 172
Do like and share this post. I use a combination of trading strategies such as Supply & Demand ( SND ), Harmonics Patterns, Multiple Time Frame Analysis , Candlestick Analysis to name a few. Follow me if my trading style suits you as I will be posting new trade ideas and analysis regularly.
As Harmonics Pattern mostly seemed like counter-trend trading with Completion Point D (the place you enter your trade order), a price stretched from Point C, where after passing Point B some traders may have the impression that a change in trend is underway. How I like to determine trend is based on a higher time frame than the one I am trading on.
In this example, I am placing my order on the H4 and this time frame gives me a nice looking Bat Pattern (visually the pattern does look skewed), therefore I consider trend using the the H12 or daily, sometimes I go even higher just to see the "Big Picture" that most people will miss because they are so fixated at the time frame they are trading at. It is important to go to various time frame so you know exactly where the trend is that will help you with managing your trade after entry. It is common to see traders getting solid entries but not sure what to do after that, not knowing how to exit the trade for profits or for loss.
I also look for trade that satisfy at least 3 of my strategies/methods to enhance the odds of the trade working out. Be very picky with your trades and dont fall victim into FOMO. Remember, skills and knowledge only accounts for 40%, the other 60% depends on your psychology and emotions.
Trade Setup:
Entry - Within the Sell Area (at Point D if you are more conservative)
SL - 206.5
TP1 - before 192
TP2 - before 184
TP3 - before 172
Do like and share this post. I use a combination of trading strategies such as Supply & Demand ( SND ), Harmonics Patterns, Multiple Time Frame Analysis , Candlestick Analysis to name a few. Follow me if my trading style suits you as I will be posting new trade ideas and analysis regularly.
Trade active
Note
Sell zone was identified accurately but there seemed to be a surge in buying activities in the market for ETH, holding the price from falling. Moreover its at USD200 which is a nice round number where many will be speculating. I am ready to exit this trade prematurely at breakeven or small loss. There is a possibility to switch from sell to buy if the right price action comes in.
Trade closed manually
Switching to buy at Usd201. Earlier analysis overridden.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.