Can Ethereum reclaim $3K? The right way to follow a reversal.
Yesterday, I mentioned an SSL (Sell-Side Liquidity) Sweep on the Ethereum daily chart in my posted idea. Fortunately, we can see that the candle closed after sweeping the lower liquidity zone.
In my last comment, I mentioned that I would discuss how to follow reversing price movements, and I plan to cover that briefly in today’s idea. (Although I said it would be brief… I might end up writing more than expected. 😅)
The process of analyzing the market purely through charts and executing trades based on that analysis can vary significantly.
The Time Frame classifications as I understand them are as follows:
The Top-Down classifications I primarily use are:
After establishing your own Time Frame approach and identifying the larger trend, the next step is to decide:
“How and where should I trade?”
Let’s assume the high of your trading range is the head and the low is the feet.
If the price is reversing and you are planning a long-biased trade targeting the high of the range, it’s important to determine where within this range to enter a position. You can consider entry levels at different points, such as: Feet, Knees, Waist, Shoulders, or Head.
Now, if we apply this concept to the current Ethereum chart and break down the range similarly, we can identify the following key zones:
If we consider the swept area as the “feet”, it’s fair to say that retail traders almost never catch this exact bottom. So, how can we correctly follow a reversing price?
How to Follow a Proper Price Reversal
For a true reversal, we need:
There are countless ways to set an entry line, but the most common method is identifying key support and resistance levels to make an informed entry decision.
Currently, Ethereum remains in a downtrend, and a trend shift can be confirmed through various methods, such as: Trendline Breakout / CHOCH (Change of Character)
Monitoring these confirmations will help determine when the trend is truly reversing.
Personally, when looking for a safe and stable buy entry, I believe it might be worth considering the Bullish 5-0 Pattern, even though the pattern has not yet been fully confirmed.
I previously mentioned that I would discuss how to properly chase a price reversal, and while I also intended to explain potential buy entry strategies in detail, I realized that a proper explanation requires relevant examples.
Since providing real-time chart references is the best way to illustrate these concepts, I plan to gradually share these methods and insights over time.\
.
.
.
.
.
.
The Time Frame Top-Down approach and the basic concept of structural changes that I shared today can serve as a valuable turning point for those who tend to trade based on weak or insufficient reasoning, often leading to losses.
Moving forward, I plan to continue providing well-grounded trading concepts and analysis ideas to help traders reduce losses and achieve consistent profitability through informed decision-making.
If you found my ideas valuable, I’d greatly appreciate it if you could boost (like) and follow for more insights.
Thank you! 🚀
In my last comment, I mentioned that I would discuss how to follow reversing price movements, and I plan to cover that briefly in today’s idea. (Although I said it would be brief… I might end up writing more than expected. 😅)
The process of analyzing the market purely through charts and executing trades based on that analysis can vary significantly.
And I prefer using the Time Frame Top-Down approach, where I analyze the broader view on a Higher Time Frame (HTF), refine the outlook on a Middle Time Frame (MTF), and pinpoint entry levels on a Lower Time Frame (LTF).
The Time Frame classifications as I understand them are as follows:
- HTF: Monthly-Weekly-Daily
- MTF:4H-1H
- LTF: 15m-5m-1m
The Top-Down classifications I primarily use are:
- Weekly → 4H → 15m
- Daily → 1H → 5m
The reason I use this method, which I briefly mentioned in a previous idea, is as follows:
- It helps prevent counter-trend trading against the dominant trend.
- Analyzing the higher time frame allows for filtering out market noise to some extent.
- Defining personal key trading zones helps in managing risk more effectively.
After establishing your own Time Frame approach and identifying the larger trend, the next step is to decide:
“How and where should I trade?”
Let’s assume the high of your trading range is the head and the low is the feet.
If the price is reversing and you are planning a long-biased trade targeting the high of the range, it’s important to determine where within this range to enter a position. You can consider entry levels at different points, such as: Feet, Knees, Waist, Shoulders, or Head.
Now, if we apply this concept to the current Ethereum chart and break down the range similarly, we can identify the following key zones:
If we consider the swept area as the “feet”, it’s fair to say that retail traders almost never catch this exact bottom. So, how can we correctly follow a reversing price?
How to Follow a Proper Price Reversal
For a true reversal, we need:
- A clear inflection point where price stops making lower lows.
- A trend structure shift, confirming the change in direction.
- Once the structure change is confirmed, identify potential entry zones within the new range.
There are countless ways to set an entry line, but the most common method is identifying key support and resistance levels to make an informed entry decision.
Currently, Ethereum remains in a downtrend, and a trend shift can be confirmed through various methods, such as: Trendline Breakout / CHOCH (Change of Character)
Monitoring these confirmations will help determine when the trend is truly reversing.
Personally, when looking for a safe and stable buy entry, I believe it might be worth considering the Bullish 5-0 Pattern, even though the pattern has not yet been fully confirmed.
I previously mentioned that I would discuss how to properly chase a price reversal, and while I also intended to explain potential buy entry strategies in detail, I realized that a proper explanation requires relevant examples.
Since providing real-time chart references is the best way to illustrate these concepts, I plan to gradually share these methods and insights over time.\
.
.
.
.
.
.
The Time Frame Top-Down approach and the basic concept of structural changes that I shared today can serve as a valuable turning point for those who tend to trade based on weak or insufficient reasoning, often leading to losses.
Moving forward, I plan to continue providing well-grounded trading concepts and analysis ideas to help traders reduce losses and achieve consistent profitability through informed decision-making.
If you found my ideas valuable, I’d greatly appreciate it if you could boost (like) and follow for more insights.
Thank you! 🚀
AI 머신러닝을 통한 데일리 리포트(일 2회, Ai 추천 포지션 포함), 개인적인 관점 등 다양한 내용을 확인할 수 있습니다.
텔레그램 채널:
t.me/trading_boys_first_worldwide0831
텔레그램 채널:
t.me/trading_boys_first_worldwide0831
Related publications
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.
AI 머신러닝을 통한 데일리 리포트(일 2회, Ai 추천 포지션 포함), 개인적인 관점 등 다양한 내용을 확인할 수 있습니다.
텔레그램 채널:
t.me/trading_boys_first_worldwide0831
텔레그램 채널:
t.me/trading_boys_first_worldwide0831
Related publications
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.