ETH/USDT Bullish Setup
1. Market Analysis:
Asset: ETH/USDT (Ethereum vs. USDT)
Pattern: Bullish Gartley harmonic pattern identified on the daily timeframe.
Key Levels: Price is approaching the completion point (D), which aligns with strong support zones, indicating a potential bullish reversal.
2. Gartley Pattern Details:
Pattern Structure:
XA: Initial impulse leg.
AB: Retraces 61.8% of XA.
BC: Extends between 38.2% and 88.6% of AB.
CD: Completes at 78.6% retracement of XA.
D Completion Zone: This is the key area to watch for bullish price action confirmation.
3. Trade Setup:
Entry Point:
Enter a long position when price action confirms a reversal at or near the D-point (e.g., bullish engulfing, hammer candle).
Stop-Loss:
Place the stop-loss below the D-point or a nearby support zone to protect against invalidation of the pattern.
Take-Profit Levels:
First Target (TP1): 38.2% retracement of the CD leg.
Second Target (TP2): 61.8% retracement of the CD leg.
Optional Target (TP3): Full retracement to the XA high.
4. Risk Management:
Position Size: Base the position size on the risk tolerance and distance between entry and stop-loss, ensuring no more than 1-2% of trading capital is at risk.
Risk-Reward Ratio: Aim for at least a 1:2 risk-reward ratio.
5. Additional Confirmation:
Volume Analysis: Look for increasing volume as price reverses from the D-point, signaling strong buying interest.
Oscillator Support: Check RSI/MACD for oversold conditions or bullish divergence near the D-point for additional confirmation.
6. Trade Execution:
Place Orders:
Set a buy limit order near the D-point if confident in the pattern’s completion.
Alternatively, wait for bullish confirmation before entering.
Adjust Stops: Trail the stop-loss to lock in profits as price moves toward take-profit levels.
Asset: ETH/USDT (Ethereum vs. USDT)
Pattern: Bullish Gartley harmonic pattern identified on the daily timeframe.
Key Levels: Price is approaching the completion point (D), which aligns with strong support zones, indicating a potential bullish reversal.
2. Gartley Pattern Details:
Pattern Structure:
XA: Initial impulse leg.
AB: Retraces 61.8% of XA.
BC: Extends between 38.2% and 88.6% of AB.
CD: Completes at 78.6% retracement of XA.
D Completion Zone: This is the key area to watch for bullish price action confirmation.
3. Trade Setup:
Entry Point:
Enter a long position when price action confirms a reversal at or near the D-point (e.g., bullish engulfing, hammer candle).
Stop-Loss:
Place the stop-loss below the D-point or a nearby support zone to protect against invalidation of the pattern.
Take-Profit Levels:
First Target (TP1): 38.2% retracement of the CD leg.
Second Target (TP2): 61.8% retracement of the CD leg.
Optional Target (TP3): Full retracement to the XA high.
4. Risk Management:
Position Size: Base the position size on the risk tolerance and distance between entry and stop-loss, ensuring no more than 1-2% of trading capital is at risk.
Risk-Reward Ratio: Aim for at least a 1:2 risk-reward ratio.
5. Additional Confirmation:
Volume Analysis: Look for increasing volume as price reverses from the D-point, signaling strong buying interest.
Oscillator Support: Check RSI/MACD for oversold conditions or bullish divergence near the D-point for additional confirmation.
6. Trade Execution:
Place Orders:
Set a buy limit order near the D-point if confident in the pattern’s completion.
Alternatively, wait for bullish confirmation before entering.
Adjust Stops: Trail the stop-loss to lock in profits as price moves toward take-profit levels.
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.
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.