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ETHUSD Perspective And Levels: More Bearish Signs.ETHUSD Update: 315 level double top is now generating a pin bar which still has 12 hours before is closes so it can change, BUT again just like BTC, it is worth noting because of the potential bearish trigger that can lead to real selling. There was a nice move from the 286 support zone (that I wrote about previously) back up to 315. I haven't looked, but I am willing to bet there is a lot of chatter about "ETH Going To Moon!", and it's not happening. There is no moon, instead, there is a large resistance zone just above at the 320 to 350 area (.618 of recent bearish swing). This market has not even made it into that zone, and instead is in the process of forming a pin bar at a previous turning point which can solidify into a double top. 305 is the current low of the pin bar (but that number can be lower by the close of the candle). When this period closes, and the pin bar is still present, what ever low is in place at that time will be the short trigger. Then IF the market breaks 280, that will confirm the double top which would signal further weakness ahead. No moon. Just like BTC, the bearish argument keeps building: Price has not even entered the major resistance zone of 320 to 350, price has possibly formed a double top at 315, possible large time frame pin bar forming, plus the 315 level is a lower high compared to 400. If I were shorting these markets, these would be the signs that I would need to see. The key is in the confirmations, just like in BTC, 4104 needs to be taken out, in this market its 280. The appearance of a bearish pattern like a pin bar or a double top alone is not enough. Confirmation implies the selling is significant and is likely to continue. If 280 breaks, there is a .618 support zone (of recent bullish swing) at the 276 to 266 area where price may hesitate, but coming from a double top and lower high, it is reasonable to expect supports like this to break, which can take price back to the 243 to 223 support zone (.618 of entire bullish swing). Like I have written about previously, often the signs are in place before the market is surprised with significant selling and there are many signs at the moment. It is just a matter of a bearish catalyst. The 243 to 223 area is an overlapping support zone and if price manages to retest, I am curious to see how it reacts since a C Wave would be in progress which can complete much lower. Any failed lows in this zone can possibly lead to a large double bottom or higher low formation, and that is something I would be interested in. Keep in mind this process can take time (days). According to my extension measurement, Wave 3 of C (which should be the next wave) is likely to complete around the 267 area (1.618), while Wave 5 of C can push to the 239 (2.618) area (this is based on the proportion of the of the price structure). This is just a possible scenario and is not a consideration until the bearish triggers I mentioned earlier are in effect. In summary, these markets have been very slow in terms of swing trading, but bearish signs are beginning to accumulate. I am using this information to justify staying flat since I do not short these markets. There is plenty of action on the smaller time frames which I encourage everyone to participate in if you have the time and well thought out plan to guide you. My analysis can still serve as an overall context, especially for the levels. My plan is to stay out of any swing trades until this market presents a situation that shows clear potential to the upside for a reasonable amount of risk. Questions and comments welcome.
BITFINEX:ETHUSD
by MarcPMarkets
13
BTCUSD Perspective And Levels: Watching The Pinbar.BTCUSD Update: Bearish candle has appeared on the 24 hour chart. A break of the 4280 low triggers the shooting star like pattern which often leads to significant selling momentum. The candle is present, but it is not in effect until the low is taken out. Once 4280 is broken, it is reasonable to expect price to retrace back to the 4104 support and possibly lower. Since the potential signal is on a larger time frame, the magnitude of the move will most likely be larger. If the bearish momentum builds, this is the move that can take price back to the 3867 to 3705 support zone which is the .618 area of the recent bullish swing. If price falls below that, then the next support area is 3560 to 3310 which is the adjusted .618 of the entire bullish swing from the recent bottom. It is in these zones where it is reasonable to expect price to react and possibly find new stability. There is no way to know until these zones are reached again. Price gave a similar signal on the weekly chart before the recent selloff, so it will be interesting to see if this signal leads to a similar outcome. To review the factors that build an argument for a broader selloff: Price never cleared the 4550 upper range of this wide resistance zone, price formed a minor resistance within the zone (minor .618 of bearish swing), and now the 24 hour time frame is showing a pin bar (shooting star like candle). If there is anything that says don't go long now, this is it. ETH has formed some interesting structure at the same time, but if BTC sells off, I expect ETH and the rest of the coins to follow, especially since none of them pushed any significant highs. I have been bearish and avoiding any swing trade longs in these markets because of the wave count and hesitant price action (although there have been plenty of small time frame opportunities). Keep in mind, anything is possible which means even though the pin bar is present, does not mean it will trigger, but it certainly should not be ignored. If the market manages to stay above the 4280 trigger, that can lead to strength IF 4550 manages to get taken out, I just think this scenario is much less likely, especially in the face of the pin bar. For smaller time frame traders, the break of the 4280 low can offer short opportunities, but again you must have your well defined plan and know how to manage your risk. I do not have the time to write evaluations for day trading in these markets, but for those who have experience, my analysis should certainly provide some context in terms of levels and expectations. In summary, this market may finally be preparing for a decisive move. Pin bars on large time frames do not appear often, so when they do, they certainly call for attention. The break of 4280 can possibly lead to the selling that I have been writing about for weeks now. I have been doing this long enough to know that eventually the market will line up for the kind of opportunities that are in within the scope of my plan. That does not mean you have to stay flat also. I encourage you to use the levels and other information to gain perspective for shorter time frame trading (if you have the time). The best thing you can do is learn to make your own independent decisions. That is why no matter what is going on, what news is coming out, what other traders are writing about, I stick to my plan and how it relates to the price action. Comments and questions welcome.
BITFINEX:BTCUSD
by MarcPMarkets
6
BTCUSD Perspective And Levels: Watching For 4100 Support Break.BTCUSD Update: Selling momentum is beginning to reveal itself, but is not confirmed until 4104 (.382 of bullish swing) is taken out. Smaller time frame price action has been very misleading because it looked bullish on its way to 4400, but the bigger picture always carries more weight, and it is not bullish. As a swing trader, the bigger picture is key for decision making because that is the magnitude of risk and reward that will affect my outcome. With that being said, the 4104 support break is required to confirm that the selling momentum has something behind it. This is not a sell trigger, it is a confirmation that prompts me to look for the next lower high which is more likely to follow AFTER the support break. If this support holds, I will interpret that as price is still lingering in a very tough resistance area which presents high risk for swing trade longs. As time goes by (and no major price reactions), it is possible for this market to build a supportive base in this area that can eventually lead to higher prices, but until I see any signs of that, I have no intention of getting long. The 3865 to 3706 (.618 of recent bullish swing) is the next support area where price is most likely to react upon a retest. The reason why I will not be looking for longs here is the same, risk is too high on the swing trading time frame especially since this support zone is more likely to break. (Lower highs often lead to lower lows). So when will I begin looking for longs on the swing trade time frame? Either we break out above 4550, and on the subsequent retrace I will be looking, OR the more likely scenario which is the C Wave unfolds and completes at much lower prices, followed by new supportive structure. Also as I have written about before, IF the C Wave asserts itself and we get some low prices, I will also be buying as an investment, which is separate from a swing trade. In summary, if there is any lesson we can learn from the current market conditions, it is the value of patience. Some traders have written some excellent comments that show their understanding that these markets will always be going higher and lower and always be presenting new opportunities with relative risks. If you are anxious for action, you can always day trade, but you have to have the plan, the time and attention span. If you are looking to capture broader movements without being glued to a computer screen all day, then you have to accept the amount of patience that is required. Think about it this way: Patience will not drain your capital. If you miss "the move", you will still have your capital to participate in "the next move". Movement and opportunities are infinite, while your funds are not. Comments and questions welcome.
BITFINEX:BTCUSD
by MarcPMarkets
17
ETHUSD Perspective And Levels: A Double Top Appears In Zone.ETHUSD Update: Minor double top within projected resistance zone of 301 to 307 area while BTC hardly pulls back, but is still stuck within a much more significant resistance zone also. Like I wrote about before, the selling structure has establishing itself, but there is no real catalyst to get these markets moving. Many people are asking why, or trying to find some kind of news or information to help explain this price action. This double top formation will be confirmed once the recent low at 280 is taken out. There is also a minor support zone at the 286 to 291 (.618 of most recent bullish swing) is worth mentioning since small time frame reversal patterns can offer day trade opportunities in an area like this, but that is up to you and your trading plan. Based on the current structure, these supports are more likely to break rather than show reversals and are not worth the risk for any swing trades. Price may hesitate at the current supports in the 286 area, 280 and even in the 260s, but the reason why I will not consider any reversal patterns for a swing trade is because in this context of a lower high, these levels are more likely to break. I know that many participants, especially if they are in positions, scour the internet for any piece of information that can explain the current price action while price is telling us everything we need to know. When the balance of order flow is made up of sell orders (and that includes the hidden ones on the exchanges), over time, this activity will express itself in patterns. Patterns like the double top, or failed high. Often these patterns will appear, days or weeks before some big news surprises the markets and that is when most people notice the obvious selling and think it started with the news event. The signs are present now, like I have been writing about, the only thing that is missing is the spark which can come out out of nowhere. Besides this short term price action, I have been writing about the wave counts in both BTC and ETH markets, which appear to be at a bearish turning point also. The only thing that is holding these markets up is the persistent BTC strength, but this strength is no where near the same compared to how it was behaving the first time up to 5k. In summary, the situation has not changed much except for an appearance of more bearish price action. The double top and lower high formation warn of oncoming support breaks, especially if there is something motivating the order flow. Like have written before, I am not taking any swing trade positions in this environment because the risk is too high compared to the potential reward based on my swing trade plan. It is just a matter of waiting, and waiting does not require any risk. Like they say flat is a position. Comments and questions welcome.
BITFINEX:ETHUSD
by MarcPMarkets
15
ETHUSD Perspective And Levels: Selling Structure But No Selling.ETHUSD Update: Lower high in place at 301 to 307 area which has occurred after the break of the 291 support (.382 of bullish swing). This is another bearish sign that shows this market is more likely to sell off, rather than go to new highs. I have been writing about this market and BTC for days now. The wave counts have been pointing to further weakness even in the face of what appears to be persistent strength. The confirmation that bears are in control will be established IF the 280 level gets taken out (this will be a bearish breakout and lower low compared to the previous low). The smaller time frames have been showing strength and traders who do not know how to incorporate the bigger picture cannot see the limitations of this bullish price action. BTC is still stuck within its resistance zone, while this market, if it manages to push higher, still has to have enough buying to get through the 320 to 352 zone in order to prove it has enough strength to continue to even higher prices. IF it pushes the zone, that does not constitute a buy signal. It would have to establish new supports and reversal structures in order for MY plan to qualify a long. The failure off of 312 and subsequent lower high which is now 307 can be the beginning of the selling structure that can turn into the bearish Wave C that I have been writing about for days. The conditions are present to facilitate a selloff, all that is required now is a spark, like some piece of negative news. (If the market sells hard, people will think the news caused it, but the market is vulnerable now. Just needs a reason to push it.) Again I have been using information to stay flat. If some very positive news comes out instead, that can erase the factors that are pointing to serious selling. News is a random element that must get priced into the market. What less experienced traders do not realize is this: news, as much as you like to think has a rational effect on prices, is NOT rational. It's interpretation is dependent on the sentiment of the market crowd, not our individual logic and irrelevant opinions. This is why there are times when news may come out that is good, but "not good enough" or bad, "but not that bad" in the eyes of the crowd. This is why I will let the market crowd figure it out, and once an imbalance is reached (more sellers than buyers or vice versa) then the price action will show clarity allow for decision making to be much easier. In summary, the lower high that is in place at 307 is just another sign that adds to the growing bearish argument in this market. A break below the 280 level, especially accompanied by a catalyst, will confirm bearish momentum which reduces the probabilities that supports will hold if the market retests them. I am just reporting the clues that the market is offering at the moment and they can be erased if some very positive information enters this market. My concern is risk, not being right or wrong and based on the current price action and structure, it appears risk for a long swing trade is very high relative to the potential reward. So I continue to stay flat and wait until the market offers better opportunities. Patience preserves capital, took me years and a ton of money to learn that lesson. Questions and comments welcome.
BITFINEX:ETHUSD
by MarcPMarkets
30
BTCUSD Perspective And Levels: Bullish Yet?BTCUSD Update: I have been explaining my bearish reasoning while the price continues higher. Is it still bearish? Yes and I will use this chart to help explain why. As I wrote in my previous BTC report, price is in the middle of a major resistance zone which is the 4203 to 4548 area (.618 of recent bearish swing). It is a very wide zone which means short term price action can work its way into the zone and appear to be bullish on smaller time frames. This type of price action is great for day trading because it is possible to take quick profits out of these fluctuations. I am not day trading though and looking to position myself for broader moves. Again if you want action, focus on day trades. Within this resistance zone, there are even more specific levels to watch. The 4334 resistance in particular is one that is related to significant selling (look back at chart history). Price is hesitating here at the moment, which is NOT a short signal, but a possible starting point (especially to watch). The other clue that keeps me bearish and prevents me from taking any new swing trade long positions is the wave count. My previous report shows the possible peak of the B Wave, and when the third leg of that wave (bullish Wave C) is evaluated, it is clearly showing a 5 wave structure which fits within guidelines of an ABC correction. A Waves and C Waves are typically motive. And once 5 waves are complete, the market is poised for the next wave to begin, which in this case is the bearish C Wave that I have been writing about. Consider the clues: Price fluctuating within a major resistance zone, Wave C of a corrective B (lower high), and a price level 4334 that has proven to be a resistance before. All you need now is a reason. I mentioned this requirement for a catalyst before and one trader rattled off a whole list ranging from China, to ICO scams, etc. When I say we need a new catalyst, we need one that IS NOT PRICED IN yet. It has to be a new piece of information for the market. It could be anything that can spark the initial wave of selling. Just like the previous sell off was actually happening days before the China news reached the market. I am NOT shorting these markets, but if I were, I would wait for a selling confirmation. Usually this happens once that catalyst is in play. The first thing I would look for is a break of 4032 (new .382 of bullish swing). Once that happens I will then look for a subsequent failed high. Another consideration for investors (besides going back to fiat), is to buy more cheap coins while your BTC can afford to buy more. This has NOTHING to do with swing trading, but something that I would consider because buying alt coins with BTC is an alternative way to be short BTC (I wrote about this a few weeks back). This assumes you have a long term investment plan for your portfolio of alt coins. What if BTC keeps going higher? Anything is possible. A bullish catalyst can surprise the market and negate the bearish signs that are present. Like I explained in my previous report, TA is about evaluating clues and preparing for possibilities. As price action traders we must always be flexible and open to new information. If this market continues to push higher, I need to see the 4548 level get taken out before I start evaluating support levels for new longs. In summary, the best we can do is define possibilities based on information the market provides (through price action) and prepare from there. At the moment, this market is still in a position that is poised to sell off, it is just a matter of a motivational spark. The initial selling may not even be that dramatic, and then the catalyst surprises the market. If I am wrong, and the market continues higher, I don't lose anything because I am not risking anything. Instead I adjust, and if this market is going to have a significant rally, it will offer plenty of swing trade opportunities. Questions and comments welcome.
BITFINEX:BTCUSD
by MarcPMarkets
28
BTCUSD Perspective And Levels: Key Resistance Zone.BTCUSD Update: 4212 to 4548 resistance zone implies limited upside and the possibility of a being the price area where a broader Wave C can begin. In my previous report about ETHUSD, I wrote about a Wave B high at 315 which once established, prompted me to stay away from any long swing trades. The bullish structure is not that bullish and overall it is a lower high. I checked the BTC chart as well and the current resistance adds to the bearish argument even further. In this chart, I want to show the Elliott Wave count similarity, potential levels of where this count can lead price, and confirmation levels to know if this market is most likely in a bearish C Wave. Keep in mind, for those of you who are less experienced and expecting the certainty of a weather forecast, you need to understand, technical analysis does not provide any certainty. It provides CLUES as to what scenario is more likely to happen compared to a population of countless scenarios. By having an idea or "Perspective" of what this market can do, you can better prepare IF the market chooses this scenario. The goal is to simplify the decision making process to something like, "If market does this, I do that. If market does not do this, then I do nothing.". Reacting to the market based on impulses, or how YOU interpret news, is completely irrelevant to the market and is the best way to achieve inconsistent and random results. Presently this market is fluctuating in a major resistance zone. 4212 to 4548 is the .618 of the recent bearish swing. Price action and short term structure may appear bullish at the moment, but the resistance, on top of the wave count seriously counter the bullish argument. This price area is a very convenient location for a B Wave to peak which presents a great deal of risk for any new long positions. The reason is the C Wave has the potential to retest the low 3000s and even the low 2000s. Of course in order for that to unfold, there will be strong catalyst or series of catalysts in the market. Often the bearish signals are in place before the news comes out. The level that I am watching to confirm the bearish momentum is 3976 (.382 of most recent bullish swing). A break below that, and the next support to test is the 3481 to 3260. How will I use this information? First, no swing trade longs in any alt coins, even if reversal patterns show up at support levels. And IF the market offers the opportunity to buy at extreme prices like 3000 or below, I will be looking to buy for the long term. There is no precision to that, and now way to know where the bottom is (this is an investment, not a swing trade). Now if I am wrong, the market will have to prove its strength by pushing above this 4212 to 4548 resistance zone. IF this happens, THIS IS NOT A BUY SIGNAL. This price action simply serves as a clue that points to further strength. In that scenario, I reevaluate and find the next best support level. I do not care if price has to go up 300 points without me to prove itself. If you find yourself caught up in the idea of "I'm missing out" then you still have a lot to learn about trading. Also if you are looking for "action", swing trading is probably not a good style for you. In summary, as hopeful and hype full as people are at the moment with this market flirting with the 4200 level, the bigger picture presents a different story. Elliott Wave shows that there is more potential of a B Wave completion, followed by a bearish C Wave, rather than a retest of 5000. A break of the 3976 level will be the first confirmation, followed by a retest of the 3481 to 3260. If the market chooses otherwise, it will have to clear 4548 in which case I reevaluate and look for new support levels to work with. I always keep an open mind and do not worry about what I am "missing out" on. I simply analyze the clues that appear in the price action, and adjust as new information becomes available. Comments and questions welcome.
BITFINEX:BTCUSD
by MarcPMarkets
54
ETHUSD Perspective And Levels: Not That Bullish.ETHUSD Update: 312 level compromised, but price sold off right back to 300. As I wrote about in my previous report, double tops are not always precise and based on this price action, this can be identified as a double top variation. A double top is a bearish sign, especially on this magnitude. On top of that, the current wave count is not bullish at all, which limits the upside potential of these markets, and I will explain why in a moment. People have asked me why I switch back and forth from using Elliott Wave. I don't switch back and forth, I am always evaluating the wave counts, but when they appear conflicting or confusing, I am not going to write about them in order to maintain clarity in my reports. I choose to present information that makes sense and provides clear insight. The short term price action since the 198 bottom has been conflicting, but obviously bullish. Great for day trading because you limit your risk to small moves, but that kind of evaluation and risk management is up to you. My reports focus on swing trades and taking them when the factors line up to offer the most attractive reward/risk based on the criteria of MY trading plan. It can go without a trade for days, as many of you have noticed, but it is more important for me to control risk, rather than jump into any move just because the market is moving. When this market peaked at 315, I was evaluating the next support levels which are: 292 (.382 of bullish swing) and 276 to 266 (.618 of bullish swing). Then I zoomed out to get more perspective, this is when I realized this market is not as bullish as it appears. The 320 to 352 resistance zone (.618 of bearish swing) is a major area that needs to be cleared to prove this market is not completing a Wave C of a broader B and BTC has the same situation. B Waves are very tricky, and I know some traders have shared charts with the Wave A defined properly, my count was slightly off. In light of this wave count, the sluggish price action makes more sense now. Even if you don't count the waves, the broad resistance zone limits any long swing trade potential at these levels. Especially after the kind of price failure off of the 312 level. If you want to day trade the bullish fluctuations on smaller time frames, that is up to you. As far as potential for swing trades, risk to clearly way too high. I do not want to get long at the highs of a corrective Wave B when the next wave is likely to be the C Wave to complete the corrective structure. This can take prices back to the low 200s at least. On top of that, we have the broader double top in play which looks to be establishing a lower high. All bearish signs. In summary, the recent bullish price action has been slow at times, but looked like the buyers were returning , until you zoom out and see where this market is on the road map. The confirmation that the bearish C Wave is in play would be a break of the 276 to 266 support zone. If this bearish wave asserts itself, there will be plenty of day trading opportunities to get short, but again you have to have your own plan for that. Based on the current price structure, this is the scenario that is more likely to unfold. How will this help me? I know not to expect support levels to hold, and I know that bullish reversals will offer limited potential. In order for the market to prove otherwise, it needs to clear the 320 to 352 resistance zone. Comments and questions welcome. Also special thanks to the Tradingview community again for your support, I am now over 3K followers.
BITFINEX:ETHUSD
by MarcPMarkets
23
ETHBTC Perspective And Levels: Lower High Offers Important Clue.ETHBTC Update: This market serves as a good indication as far as where these coins want to go and it doesn't look bullish. The relationship helps to clarify the direction, but not the magnitude based on results of the recent price action. This market is important because it is how a large number of investors are committed to ETH. As you can see, the recent upswing, although small, correlated well with the ETHUSD retest of 300. The price action in this market reversed at the .07783 to .08092 resistance area and has established a lower high which is a bearish sign. Lower highs often lead to lower lows. And ETHUSD failed to break 300 which should not be a surprise based on what this chart is showing. When the coins sold off a few weeks back, this pair tested the .06674 for the fourth time and is now poised to test it again. The value of this information is not in the range of price movement, but instead the levels. A break of the .06674 support implies weakness for the ETHUSD pair which can be helpful information, especially when trying to filter buy signals. Remember people in this market are buying ETH with their BTC. Both markets pushed significant lows at the same time against the USD and the price action in this pair was somewhat stable because the rate of change between the two markets was similar. They were both selling off fast. The fact that this market held the support during the sell off could have been used as a sign that the selling, as extreme as it appeared, was limited. That is how I will be using this chart if the coins retest the lows again. So if this market breaks the .06674, and pushes to a lower low, that means ETH is weak and will probably be breaking support levels also. And if this market manages to bounce off the support level again, that would imply strength in the ETHUSD market. In my opinion, this market offers more insight into the price action of the ETH market along with a valuable heads up. I will be watching the .07125 to the .06938 minor support (.618 of recent bullish swing) to see if price can reverse. If it can, then I want to know: Is ETHUSD at a projected support level? Is it showing any reversal patterns on a smaller time frame? If yes, then if the risk makes sense, I am open to the possibility of taking a long swing trade. If the minor support in this market is compromised, then I don't care what ETHUSD is doing, I will not be considering any swing trade in that scenario. The market will decide and since there is a lower high in place, the bias is leaning toward the support breaking. In summary, this market is good to evaluate every so often to see what clues it offers in terms of the relationship between the ETH and BTC markets. A large number of investors own ETH in terms of BTC and levels and patterns on this chart can give us an idea of how each respective market is more likely to behave. Since price is poised to break below a very significant support, I am very curious to see how each of the coins behave in terms of the USD. If anything, this chart is saying the bearish momentum is still present, and any break of resistance will most likely fail which adds to the high risk argument I have been making in my previous reports. Comments and questions welcome.
by MarcPMarkets
20
BTCUSD Perspective And Levels: How Low Can It Go?BTCUSD update: Price establishes lower high at 3808 and is poised to push lower, but the question is how low? I am going to present some possibilities based on Elliott Wave and Price Extensions. This chart further explains why I will not go long ETHUSD at current prices for a swing trade. In my previous report I talked about the double bottom on the 4 hour ETHUSD chart and price pushed back up above the 270 resistance. Some may wonder, why wouldn't I talk about that as a trading opportunity? The reason is, that particular price action does not fit within the criteria of my swing trading plan. That doesn't meant it can't be considered as a smaller time frame trade, like a day trade, but that is up to you. I do not write about day trade opportunities and setups because there is too much complexity and adjustments that have to be made for that type of trading especially to report in a timely manner. My goal here is to provide analysis that offers perspective and to help you make better decisions in general, but the emphasis is on swing trading. With that being said, I am waiting for a setup in ETHUSD that can get me in for a broader move, and since I am not shorting these markets at all, that means I can only wait for a long setup in the right environment. Since all the alt coins are following BTC, I am using this market to provide clues for timing such a trade. In terms of Elliott Wave, this market has established lower highs at 4120 (Wave 4 of C), and at 3808 which may be the beginning of Wave 5 of 5 which is likely to complete the corrective Wave C. A measurement of the current price structure reveals the 4.618 extension around the 2824 area which is located within the 3024 to 2497 support zone (.618 of the entire recent bullish swing). Also it is important to note that the 3003 level is the peak of the broader Wave 3 that was established in June of this year (see weekly chart). A retest to slightly lower levels makes sense and would be a convenient area for a completion of the corrective wave structure. (It would also be a very large double bottom relative to the 2980 low). This scenario can take a week or more to play out and will require a significant catalyst or series of catalysts to drive the required momentum. I will be watching for a break of the 3490 weekly low, which is the first sign that this extreme low scenario is more likely to unfold. So how is this information useful? For one, I will not buy anything at the current price levels. If price is going to build a bullish argument from here, it needs to take out the lower highs and establish a clear bullish structure. That means 3955 needs to be taken out, followed by a higher low. There may be fluctuations that offer opportunities on smaller time frames (like in ETHUSD), but until the market shows clear signs of resistance being taken out, on the swing trading time frame, this price action doesn't offer attractive reward/risk. In summary, make sure to separate your perspective by time horizon. Big picture and small picture can be very different and present relative opportunities along with their own degree of risks. As a swing trader, my risk parameters are clearly defined and if the market does not align with my requirements, I simply stay flat until it does. This market, the leader of all coins, still has room to test lows and the price structure to support that scenario. Using this information helps shed light on the fluctuations in the alt coins that may look more promising than they really are. If strength intends to come back to this market sooner, it will prove itself through the appropriate price structure and I can adjust from there. Comments and questions welcome.
BITFINEX:BTCUSD
by MarcPMarkets
15
ETHUSD Perspective And Levels: Bearish Momentum And 260 Support.ETHUSD Update: The 271 level has been taken out as bearish momentum slowly works it's way back into the price action. If price takes out the 260 support (.382 of current bullish swing) then this market is more likely to retest the 237 to 219 support zone (.618 of current bullish swing). If price is going to get extreme, like I have been writing about in recent reports, a strong catalyst will be required to push price faster. I recently evaluated the BTCUSD and LTCUSD markets and the charts look the same. Momentum is bearish, and although the underlying bullish price structure has not been taken out yet (260 and 237 to 219 support areas in this market), any fundamental surprise will push these markets through these levels because the current resistance zone (271 to 291) is now a lower high. As we know by now, lower highs lead to lower lows which means there is less of the chance that the current support levels hold, and more of a chance they break. And a lower low within this context points to a Wave 5 of C which can take all these markets to retest the extremes (see LTC report). Now will this happen for sure? No one knows, and one scenario that will make for more of a bullish argument is if price can find support above 260 and then break back above the 278 level which is the .382 of the current minor bearish swing. Such a break would indicate the price is still range bound rather than bearish. If anything, buying at the current levels, and even the 260 support area carries more risk than is worth taking. The lower high that has been established in the 271 to 291 area means price needs to clearly break above the zone to open any possibility of seeing the mid to high 300s again. So in this market, I am only interested in buying in the following two scenarios: the extreme price scenario where the market retests the low 200s or lower. This is not a swing trade and does not have any stop, because risk will be managed through careful position sizing. (Just liked I explained in my LTC report). There is no setup for this, and no buying the bottom. IF price gets near the lows, especially quickly, I will start accumulating (core position for multi year hold.) The second scenario is the SWING TRADE setup within the 237 to 219 support zone. If I see a double bottom or higher low on a smaller time frame (30 Min) in that zone, I am willing to put on a long with a stop about 5 points below THE FIRST LOW of the SMALLER TIME FRAME reversal formation. The stop should not be more than 25 points of risk while my target will be in the mid 270s. Risk reward should be greater than 1:1. If price falls through the support zone with no setup, I will stay flat and watch for the first scenario. If this is confusing, just stay flat. You may wonder "Why anticipate a sharp bullish reversal off the 237 to 219 support when we are more likely in a bearish Wave 5 and supports are expected to break? The reason is there is an overlapping support zone. The 237 to 219 is within the broad 233 to 190 zone which has clearly attracted enough buyers to squeeze price back up to the 290s even in the face of extreme bearish momentum. I am simply looking for history to repeat itself. In summary, the coin markets in general looked poised to revisit lows and I am preparing for multiple scenarios by utilizing different strategies, Each strategy (position trade, swing trade) has it's own separate risk parameters and management style and it is important to understand this. If you don't then you will take risks that are not proportional to your account size. I try my best to explain my thought process to help you shape your own plan. This isn't a prediction or advice, it is a perspective. Also remember I am anticipating two scenarios out of limitless possibilities and I am NOT trying to be right, I am trying to be prepared, and most importantly FLEXIBLE by constantly adjusting to new information. Comments and questions welcome.
BITFINEX:ETHUSD
by MarcPMarkets
31
LTCUSD Perspective And Levels: Extreme Price Plan.LTCUSD Update: Same situation as the BTC market with consolidating price action just under the 55 resistance level (.382 of bearish swing). I am writing about this market to show what I am thinking for longer term positioning. This market has previously lagged the top coins, and seems to now be following the leader which in my opinion makes it more attractive for long term strategies compared to swing trading or day trading. Also the present price structure may offer a clearer hint as to what the leader (BTC) is more likely to do in the near future. First let's talk about the wave count. Just like BTC and ETH, this market is showing a 3 3 5 corrective formation with the current consolidation being a Wave 4 of C which means one more leg lower is likely and would be Wave 5. If this wave extends and revisits the low in any kind of dramatic sell off, it is possible to see price within the 37.50 to 22.50 range which is the .618 of the entire previous bullish structure (which it reached during the recent sell off). There is also a 1.618 extension at the 30.50 area which would be a convenient bottom area for a broad Wave 2 completion. Keep in mind I am not predicting that this market will reach these levels. At this point I know that price action favors bearish momentum which means lower prices are likely to follow but I do not know how low. If selling momentum asserts itself again, price may find support in the 41 to 38 area which is the .618 of the recent bullish swing (which would also put the possibility of an extreme Wave 5 into question.) Why not buy now? In order for it to revisit the extreme highs (like 80s and 90s), it first needs to push through the 70 to 80 resistance zone. Until that happens, price action will most likely be range bound and slow unless something fundamentally changes. This market is nowhere near that price zone, and instead hesitating just under the 55 resistance which I interpret as a more bearish sign. So the reason why I am writing about this market is this: Any retrace to lower support levels, followed by a reversal, offers a long term buying opportunity in my opinion. I want to be prepared before this happens so if price reaches these projected supports, I will know what to do instead of react or hesitate. My plan is long term and NOT a swing trade, which means my entry does not have to be precise and also means I am willing to take pain. There are two scenarios I am watching for. First is a retest and reversal back up off the 41 support zone. The second scenario is if price pushes extreme lows into the 30s or lower. In both situations, I will wait for the low candle to close, and then place an order to buy the break of the high of that low candle. TO BE CLEAR: This type of trading requires a solid plan and RISK management. I will not being using stops because it is a long term investment. So I manage risk through proportional position sizing instead. This means buying into it with an amount that allows me to take pain and still sleep at night. I can always add to the position on the way up. Again this is NOT swing trading, I must emphasize this because it has different risk parameters and management style. (No short term profit targets). In summary, this market is interesting in many ways and if it offers extreme prices again, would be one that I intend to build a position for the long term. Presently price action is slow, showing signs of bearish momentum and is following the BTC lead. There is nothing attractive about the current price levels. The goal of this analysis is to provide an idea of how I am planning to get into this market, but the market needs to provide the opportunity. The plan must be in place ahead of time because in the thick of extreme price action, emotion will often get in the way. As my former Forex colleague Todd Gordon says: Plan your trade and trade your plan. Comments and questions welcome.
BITFINEX:LTCUSD
by MarcPMarkets
25
BTCUSD Perspective And Levels: 3690 Pivotal Support.BTCUSD update: The key resistance is the 4203 to 4548 area which is the .618 of the recent bearish swing. If price fails off of this area, it will need to find support above 3690 in order to maintain the current bullish structure and a chance to push beyond the 4548 level. If 3690 breaks, that could be the beginning of a correction that can take price back to the 3000 level. As I wrote about in my previous BTCUSD report, this market appears to be in a C Wave and there are now 4 of 5 waves in place which means there is still a chance that Wave 5 unfolds. I am not predicting that it will, I am just going by the price structure that the market is showing at the moment. In order to add more weight to this scenario, the 3690 level (.382 of bullish swing) needs to be clearly taken out followed by a retrace to a lower high. On the 4 hour time frame, this process can take a day or two and will need a catalyst to ignite the required selling. In this scenario I would not expect support levels to hold, or only hold enough to generate a lower high followed by an eventual break of the 3227 level. If this price action materializes, I will be planning to invest at the extreme lows. Since all the coin markets are following this chart, you can buy any of them that suit your risk tolerance and affordability. Now to make sure what I just wrote is CLEAR: Buying at extreme lows is NOT a swing trade strategy and not short term in any way. It is also not technical and more of a sentiment play. It requires you have a well defined plan, understand sizing and can tolerate risk. If you are not sure what I am describing, then it is best to stay out all together because you will only get yourself into trouble. Buying into extreme lows requires the ability to handle the risk. And this is NOT advice, I am just sharing what I intend to do IF this market offers an extreme low opportunity again in the near future. A push to 3000 or lower would qualify as extreme for me. What if the market never retraces back to extremes? This is the other possibility where price pushes up into the current resistance zone, and pulls back into a significant support like the 3227 area without falling apart. I would categorize this price action as a range bound market which is not that unusual after the degree of recent selling momentum. In order for a market to get back to building bullish structure and pushing highs again, it needs to stabilize and build a base. A range bound market or consolidation is just that. This type of condition will offer trading opportunities, but they will have very conservative targets. Any swing trades that I take will be in the ETHUSD market while I use this market for further reference. In summary, the market will choose a scenario, and the best we can do is be prepared for which ever one unfolds. Using elements like support/resistance and Elliott Wave can help us figure out what to look for and prepare. I realize many new participants think that this is a game of "outsmarting" the market or predicting what it will do next like a weather report. Analysis is not like that at all because all financial markets possess an element of randomness that we cannot control. The best we can do is evaluate price action, find clues and use them to anticipate what the market may do, and if our scenario unfolds, we simply execute our plan instead of reacting emotionally. If price cannot break the overhead resistance zone, and starts breaking supports instead, that will signal to me to stay out of any swing trades and only look for investment opportunities at extremes. If the extremes never happen, then the plan will be to look for swing trades within a range bound market. I have my plan, now the market needs to choose which way it will go. And if the market chooses a completely different scenario, I simply reevaluate and adjust to the new information. Comments and questions welcome.
BITFINEX:BTCUSD
by MarcPMarkets
30
ETHUSD Perspective And Levels: Resistance Zone Above.ETHUSD Update: Shallow higher low established at the 238 level while price is attempting to push the minor resistance at the 259 to 262 area. The problem is momentum is still bearish and the 271 to 291 resistance zone ahead can lead to a lower high. The higher low in place is a great example of a reversal formation, the problem is it has appeared in a very limiting context. First, price did not retrace back into the 233 or 220 support areas which would have been fine if this market was presenting bullish momentum like just retracing from a new high. Instead, price is showing a higher low (a sign of strength) in an environment of lower highers and a .382 resistance zone just ahead in the 271 to 291 area. So buying into this price action for a swing trade presents risk that is too high until there is evidence of bullish momentum again. Why would a pullback to the 233 level or 220 be any better? It would present a risk/reward that is much more attractive, which would make a swing trade worth taking. For example, a retrace to 225 and reversal allows for a target of the low 270s while placing a stop in the low 200s. Risking 25 to make 50 is worthwhile. Buying in the 260s allows for maybe a 15 to 20 point target, with at least a 20 point stop which offers around 1:1 which isn't bad BUT this is accompanied by the higher possibility of the 271 area asserting a lower high in this environment. So there is more working against the trade at these levels and the reason why I will continue to stay flat. In order to prove bullish momentum is backl, price needs to push beyond 291. At that point, a subsequent retrace will offer a better opportunity because momentum will be more in favor of longs for a swing trade time horizon. And don't forget, in my previous report I wrote about the Wave C in the BTC market which still has plenty of room to complete which again favors lower prices. And since the alt coins are playing follow the leader, any further sell off in BTC will weigh on these coins. Another factor that increases the risk of taking a swing trade at current levels. In summary, it is very challenging not to get lured into price formations that look like great buying opportunities. What many less experienced participants fail to consider is the context of the situation. The formation looks good, but there are too many factors in the environment that reduce the attractiveness in terms of reward/risk. If price is going to reverse back up dramatically and return to the bullish momentum that we are all familiar with,it will offer plenty of opportunities to get back in at much more attractive reward to risk ratios, even if the price is higher. I have no problem taking more aggressive entries, but only when the context favors the position, and at the moment it does not. Comments and questions welcome.
BITFINEX:ETHUSD
by MarcPMarkets
32
ETHUSD Perspective And Levels: 260 Support Test?ETHUSD Update: 280 support revisited while bearish momentum continues to push prices lower. Even though this correction still has room to test even lower prices, it is normal and will offer a better opportunity to buy, just not yet. As I wrote about a few reports ago, 320 was a significant break and maybe now you can see why. If you look at a weekly chart, it is basically the low of the previous week's Shooting Star like candle. If you read my reports at that time, I describe the bearishness of the signal, and why I would not even think about buying. The current weekly candle closes today and if it closes the way it looks now which is near the low, especially with no wick, then this signals lower prices are still more likely. At the moment I am watching for a retest of the 260 support to see if price can stabilize. A break below opens the possibility to retest the 230 support zone which is related to the .618 of the recent bullish structure. What adds to this argument further is the lower high structure at 340 (which I talked about in previous reports), the wave count, and the ETHBTC chart which offered plenty of warning ahead of this bearish momentum. In terms of Elliott Wave, I am counting the previous bullish 5 wave structure as a 1 of a larger 3. The current corrective legs are part of the subdegree Wave 2 which implies that a larger Wave 3 is likely to follow once this correction completes. Buying too early in anticipation of subdegree Wave 3 of 3 is extremely risky because Wave 2's can be deep corrections. I would rather wait until the bottom is in place and buy at slightly higher prices because at least I will be able to evaluate my risk more effectively than I can at the moment. Also pay attention to the ETHBTC market because it is testing the .06562 triple bottom area. If that level breaks, that will also add to the bearish momentum that can take this market to the lower supports. In summary, my plan is to let the bearish momentum play out and wait for stability at one of the lower support levels before I do anything else. Right now in order for me to get long, I need to see bullish momentum return which means price needs to show evidence of a reversal ALONG WITH a change in momentum. If price revisits 260 or lower, that doesn't mean I will get that low price. When momentum changes, prices will have to be higher in order to confirm the buyers are back. Keep in mind these evaluations are short term in scope and if you plan to hold for more than a few weeks, or months, then you can start building a position at any low, just make sure to have a very well defined investment plan and don't get too big too fast. The bullish momentum will return and when it does, the market will provide the proof. Until then, I wait. Comments and questions welcome.
BITFINEX:ETHUSD
by MarcPMarkets
26
ETHUSD Perspective And Levels: Bearish Momentum Continuation.ETHUSD Update: Price action is consolidating within the 309 to 290 area and triangles like these are typically continuation patterns. Even though smaller time frames are showing some signs of reversal, the overall momentum is still bearish.' When markets are in clear bullish trends, it is much easier to decide when to buy, but when the environment becomes conflicted and noisy, this is when you really need to understand price action. These environments are full of false signals and very easy to buy too early, especially if you have a limited understanding of TA. Price action in this market has been behaving as anticipated around the projected support levels, but the reason why I won't start buying is because momentum has not changed. Lower highs often lead to lower lows and in the face of a small triangle, I would rather stay out until there is clear evidence of bullish momentum. Remember a reversal does not guarantee price will go back up. The reversal is the first step that indicates momentum is in the process of changing. There are bullish reversals present on the 1 hour time frame but since we are facing a lower high, I need more confirmation and that will come in the form of resistance levels breaking. Strength breaks resistance levels and the price points that will confirm that bullish momentum is back is 310 and then the 320 to 330 area which is related to the .618 of the recent bearish swing. IF those levels are taken out, buying on pullbacks will be more reasonable. In fact a break above 330 will confirm the 290 area as a higher low which would signal further strength. Since the market is still showing bearish momentum, the more likely scenario based on the clues on this chart, is a retest of the lower supports that I have been writing about which are the 291 to 282 area and the 260s. A break below 290 will more than likely trigger more selling and IF that happens, I will be watching these supports for stability before doing anything else. In terms of Elliott Wave, this price action can be part of a subdegree Wave 2 of a broader Wave 3 (The previous 5 wave structure was the first wave). Corrective waves can be very confusing and for the sake of simplicity, I am not labeling them, but if this is a Wave 2, it only has two legs in place which means there is a greater chance of one more leg which is Wave C. If this wave unfolds, the 260 level is a very reasonable area for it to complete and there is even a possibility of a revisit to the 230s. If price actually retraces that far, that would be a good buying opportunity, especially for long term holders (Upon validation). In summary, although some bullish signs have appeared at projected levels, bearish momentum is still present and the reason why I will not buy at the moment. The small consolidation, plus the wave count make for a situation that carries too much risk for any new long position. If the market proves otherwise, then breaks above 310 and 330 will signal that change and I will even consider buying a small position at that point. I am not trying to get the best price, I am trying to get in line with the momentum so that chances are the trade will go the right way with the least amount of pain. The market will decide and then I will adjust to the new information. Comments and questions welcome.
BITFINEX:ETHUSD
by MarcPMarkets
42
ETHUSD Perspective And Levels: Watching For Reversals.ETHUSD Update: The 320 break signals the return of bearish momentum and confirms the lower high formation as I described in my previous report. ETHBTC also offered a heads up with it's resistance failure that I mentioned as well. The question now is can this market find support at the projected levels and form a broader higher low? Compared to my average number of views, my previous report was way below but for those of you who took the time to read it, it described what is happening now. 309 was the first support level to watch for stability, and price fell through like it wasn't even there. And this is exactly why I do not place buy orders at levels, because they are random until the market proves that there is a reason to buy there. The validation section of my trading plan is what helps me filter out this type of situation. The next area is the 296 support which which is more in play at the moment. As I have written about previously this is the .382 of the entire bullish swing and since it is a proportion of such a large price move, price action around this level will be very noisy just like it was the first time it tested this area (and went below 270). And that adds some weight to the 292 to 281 support zone which is related to the .618 of the recent minor bullish swing. Just below that is the 260 support that I explained previously also. The recent 4 hour candle is large and even though there is some retrace (wick) I will take that as a clue that this market is more likely to test the lower supports. Large candles are a sign of strong momentum so it is reasonable to expect the next few sessions to be bearish at least (unless there is a dramatic recovery during the next candle). Other factors that support this bearish argument are the lower high confirmation at 340, AND the failed high on the ETHBTC chart. As I also mentioned in my previous report, in order for me to buy, I need to see a failed low, or higher low and it would be helpful if the market offered that structure at one of the projected support levels. IF the market can stabilize in the 292 to 281 zone, then that would signal more of a range bound situation. If I can get long somewhere in the lower part of the range, I will be targeting the 325 area at least initially. In particular I will be watching the price action for a higher low or double bottom on a smaller time frame and will be considering the mid 250s for stop placement. Price structures of this kind will negate the bearish momentum that is present at the moment. Otherwise I stay out. I do not know if any relevant news came out, and the reason why I don't check or write about news is because price tells me everything I need to know. Price action made me very cautious about the previous up move and I reiterated it over and over. If the market wants to sell, it will sell. And again this price action was setting up before any news. News only serves as a catalyst and helps the market move in the direction of it's intention faster. One of the basic foundations of technical analysis is that the market discounts everything and that includes news. In summary, the bearish momentum that was building up in the price action played out to a point. The confirmed lower high opens the possibility of testing the lower support levels that I wrote about previously. Keep in mind, the overall trend is still bullish, this market is just going through a normal correction and upon stabilization will offer another buying opportunity at attractive reward to risk ratios. Remember that the support levels are proportionate to the swings that they measure, and they provide reference points to evaluate for particular price action (like a double bottom). They are not buy prices to just set orders for. The best thing you can learn from my analysis is how to anticipate instead of react, because without that ability, you will always be chasing. Questions and comments welcome.
BITFINEX:ETHUSD
by MarcPMarkets
27
ETHUSD Perspective And Levels:320 Break Will Confirm Lower High.ETHUSD update: There is a minor higher low at 320 but the current price failure renders it insignificant because the high of this bullish swing has peaked just under the 346 to 367 resistance zone. Plus the ETHBTC price action has failed below its corresponding resistance. I interpret these signs to mean near term bearish momentum is more likely. First let me say that in the long term, I am bullish on this market which means as a buy and hold, it is a good idea. If that is your goal then the most value that you will get from my analysis is when to add to your position. And for those with very limited knowledge of trading, my analysis is short term and best used for day trading or swing trading strategies which focus on near term fluctuations. My evaluation is an interpretation of the clues that price action offers and the goal is to estimate the PROBABILITIES of what price action is more likely to do next in the short term. It is not about being "right", it is about "listening" to the market and ADJUSTING when it provides new information. I feel the need to write this because it appears there are some in this community who still have a very limited understanding of the inner workings of financial markets and the value of technical analysis. I welcome criticism, but if you cannot provide a detailed analysis and explain the reasoning behind your perspective to the community, then you are not providing any value to those who are trying to educate themselves further so please be considerate. On that note, let's talk about the current price situation. There is a minor higher low at the 320 level and now a failed high at 340 on this time frame. This is bearish because higher lows often lead to higher highs, NOT failed highs. This coupled with the fact that the recent bullish swing has peaked just under the 346 to 367 resistance (.618 of recent bearish swing) also adds to the argument that this market is more likely forming a lower high compared to the 392 level. If price breaks below 320, this market is more likely to see the 309 support, and possibly the 292 to 281 area as well because lower highs often lead to lower prices. It is even possible to still see a retest of the 260 area. Upon a retest of any of these supports IF price stabilizes, it will likely be building a broad higher low which would offer an attractive swing trade opportunity to get long. If I see that scenario unfolding I will evaluate the risk at that time. What also adds to the retest argument is the fact that ETHBTC is not supportive at all. Just like it signaled the price failure of this market days BEFORE the China news. Keep in mind I am not going to make decisions based on this alone, but I would like to see more supportive price action from this pair if I was looking to take a new position. Keep in mind, if price some how finds the strength to push above 340, that would be a bullish breakout. The reason why I will not take that trade is because the 346 resistance is just above and not worth the risk. It would need a strong catalyst to catapult it through that resistance zone so I prefer to wait for a more attractive support level and I am willing to miss it if the retrace that I am waiting for never unfolds. Managing risk is more important so I prefer to wait until the environment is more favorable. In summary, this market still maintains its long term bullish structure. It is just that price is lacking the bullish momentum that many are hoping for. Upon a retest of the supports mentioned earlier, if they can show stability (like a reversal pattern or bullish candle formation), that would establish a larger degree higher low which would then open the door to a retest of the 346 to 367 resistance zone. And a break of that will likely take this market to a new high. It just doesn't have the structure in place at the moment, so I define the scenario I would like to see and then I wait for more clues. Comments and questions welcome.
BITFINEX:ETHUSD
by MarcPMarkets
27
ETHUSD Perspective And Levels: Lower High Limitations.ETHUSD Update: 320 resistance is taken out which indicates stability returning to this market for the moment. My plan now is to wait for the next higher low, and I would like to see it somewhere near the 309 support area. That is the first level that I will look for reversal patterns for a possible long entry. The 320 level was the .382 of the recent bearish swing and since price has taken it out without any hesitation, I interpret that as changing momentum. This does not mean I just jump in and buy. I never said 320 was a long trigger, it is just one piece of the puzzle that needs to fit before I can evaluate a long swing trade position. Now that 320 is broken, I am watching two support areas for a pull back and bullish reversal. The 309 level which is now the .382 of the current bullish swing and 292 to 281 area which is related to the .618 of the current bullish swing. Keep in mind the 296 level is still in play as well. The new resistance area is the 346 to 367 zone which is related to the .618 of the bearish swing. This area will serve as a target if I manage to get long in the low 300s or 290s. The bearish momentum may have dried up but the current price level is not a place to get long. In fact, if you take a look at my analysis on ETHBTC, the price is struggling at the corresponding resistance level that I wrote about in my previous report. This lack of follow through on ETHBTC is the same kind of price action that occurred before the market sold off. This emphasizes ever more the importance of the market proving itself by presenting a broader higher low off of one of the supports I just mentioned. If a more shallow higher low unfolds instead, I will consider it with a smaller position possibly. If anything, the peak of the current bullish move appears to be a lower high and it is slowing just under the .618 resistance zone. That is why risk is high for longs at these levels and if some unexpected bearish catalyst scares this market, price has more of a chance to revisit the 292 to 281 area or even the 250s. Buying near the lows of this move is great, but reasonable expectations are in order. Until the new resistance zone is cleared, we are more likely to see a range bound market in the near term, especially if ETHBTC cannot break the resistance that it is facing at the moment. In summary, the bearish momentum has run out of steam as proven by the 320 resistance break, but this market is not out of the clear. In order to prove that big picture strength is back and new highs are reasonable, price action will have to build a higher low formation within one of the support areas mentioned. IF price forms a lower high and pushes below the 309 support, then that would again confirm bearish momentum which can take price to the larger degree supports. The reason why I want to see a higher low is because that will remove the significance of the any bearish structures since higher lows often lead to higher highs especially in an overall bullish market. Comments and questions welcome.
BITFINEX:ETHUSD
by MarcPMarkets
42
GBP/CAD Short Double top Lower highAfter weeks of consolidation price finally broke out to the upside only to form a double top at previous support turned resistance. The second high of the double top is a LH signaling a trend change back to the bearish side. The monthly chart looks to be way overextended to the downside and a pullback is overdue. Will be looking for possible bullish HL to develop after this run down. *Trading through the daily 49EMA and recent support is not recommended, wait for clean break.
by Not4Hire