Another Example of Over-exuberance in the Short Term
Updated
Good morning, everyone,
I just wanted to provide another example very similar to my very first post. As we all know, Ethereum has been bottom-dwelling for quite a while now. This is another example of an extremely large hourly candle with a relatively strong rush of volume. In reviewing the previous price action over the short term, it simply didn't appear sustainable, at least not in such a short time frame. Again, of course we can and should expect a bounce, but often they happen a bit more gradually than in a half-hour or hour period. As before, I decided to sell on the higher end of the candle's range. In this case, it was at USD 466.74. My goal will be to buy back around USD 457.00, which would equate to a 2 percent increase in my position. Let's see how this plays out.
I just wanted to provide another example very similar to my very first post. As we all know, Ethereum has been bottom-dwelling for quite a while now. This is another example of an extremely large hourly candle with a relatively strong rush of volume. In reviewing the previous price action over the short term, it simply didn't appear sustainable, at least not in such a short time frame. Again, of course we can and should expect a bounce, but often they happen a bit more gradually than in a half-hour or hour period. As before, I decided to sell on the higher end of the candle's range. In this case, it was at USD 466.74. My goal will be to buy back around USD 457.00, which would equate to a 2 percent increase in my position. Let's see how this plays out.
Trade closed: target reached
Set an Alert on Trading View and placed a Limit Order for USD 456.50, an increase in my ETH holdings of just over 2% in under 4 hours. I could very easily have been wrong on this one. If you take a look at the bullish volume, it certainly revved up -- and I can't truly complain since I'm a bull at heart -- but, we haven't seen that many bullish hourly candles in a row for quite a while, so I did have a degree of confidence to hold fast, figuring it would give the bears a chance to come back in to curb our enthusiasm! Worst case scenario, I was prepared to place an order to buy back in at around USD 476.00, which would have essentially been a 2% loss in position on the trade, but would still keep my P&L for the week up by 2% after yesterday evening.
While I know there is nothing particularly exciting about these small percentage gains, I like posting them to show you guys that even the bulls can make some plays in these market conditions. I think of it like this: when the market is running, we can focus on the real dollar profits themselves, and when it isn't, focus instead on position building. I hope this helps you out a bit.
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