ETH - This MIGHT be the trend reversal indicator
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Hi guys. We MIGHT be in for a first small trend reversal as we are having a Heikin Ashi doji candle, highlighted by the white arrow.
As in one of the updates of my previous post, I mentioned that the yellow horizontal (top & resistance of June & September) acts as a support for Ethereum. Fair, we actually kind of broke it, but seems like we are keeping close to it and the chart is creating a Heikin Ashi doji just underneath. See the sidenote here below for a quick refresh on what Heikin Ashi candles are.
We NEED an upward move (in the form of a green candle) after this doji candle, to be able to start talking about a break-out. Preferably above the yellow line.
We are ALSO seeing a golden gross now in the MACD and likewise in the Stochastic Momentum Index below. In the latter, you can see that we haven’t had a bull cross in that low of an area before, hinting to a strong positive signal.
Also, RSI is in the clear oversold area (not shown here).
While sentiment is still very bearish, and we are more then obvious still in the downward trend channel, we are absolutely not in the clear yet. But always nice to see those hints of hope and trend reversal. Also have a look at that first green volume bar, albeit well below average volume.
So… let’s keep attentive of the next candles, volume, and price movement. This might be the beginning of a trend reversal – BUT could easily be dispelled. Best thing to do remains either sitting on the side line or if you are already in there, to HODL HODL HODL.
PS1 - this is by no means to be considered formal investment advice
PS2 - Always nice if you can gently click on the thumbs up button - it's not a lot of effort but it makes my heart light up! ;-)
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Sidenote on Heikin Ashi (feel free to skip this)
The difference lies in how candle sticks are calculated:
Close = (open + high + low + close) / 4
High = maximum of high, open, or close (whichever is highest)
Low = minimum of low, open, or close (whichever is lowest)
Open = (open of previous bar + close of previous bar) / 2
FYI: A doji candle is a commonly found pattern in a candle stick chart, characterised by being small in length - meaning a small trading range - and with an open - and close price that are virtually equal.
FYI2: A spinning top is another Japanese candle stick pattern with a short body found in the middle of two long wicks.
FYI3: Heikin Ashi candles can be found in Trading view under the candle stick section and by clicking the 4rd option; these work somewhat differently than regular candle sticks.
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As in one of the updates of my previous post, I mentioned that the yellow horizontal (top & resistance of June & September) acts as a support for Ethereum. Fair, we actually kind of broke it, but seems like we are keeping close to it and the chart is creating a Heikin Ashi doji just underneath. See the sidenote here below for a quick refresh on what Heikin Ashi candles are.
We NEED an upward move (in the form of a green candle) after this doji candle, to be able to start talking about a break-out. Preferably above the yellow line.
We are ALSO seeing a golden gross now in the MACD and likewise in the Stochastic Momentum Index below. In the latter, you can see that we haven’t had a bull cross in that low of an area before, hinting to a strong positive signal.
Also, RSI is in the clear oversold area (not shown here).
While sentiment is still very bearish, and we are more then obvious still in the downward trend channel, we are absolutely not in the clear yet. But always nice to see those hints of hope and trend reversal. Also have a look at that first green volume bar, albeit well below average volume.
So… let’s keep attentive of the next candles, volume, and price movement. This might be the beginning of a trend reversal – BUT could easily be dispelled. Best thing to do remains either sitting on the side line or if you are already in there, to HODL HODL HODL.
PS1 - this is by no means to be considered formal investment advice
PS2 - Always nice if you can gently click on the thumbs up button - it's not a lot of effort but it makes my heart light up! ;-)
---------------------------------------------------------------------------------------------------------------------------------------------------
Sidenote on Heikin Ashi (feel free to skip this)
The difference lies in how candle sticks are calculated:
Close = (open + high + low + close) / 4
High = maximum of high, open, or close (whichever is highest)
Low = minimum of low, open, or close (whichever is lowest)
Open = (open of previous bar + close of previous bar) / 2
FYI: A doji candle is a commonly found pattern in a candle stick chart, characterised by being small in length - meaning a small trading range - and with an open - and close price that are virtually equal.
FYI2: A spinning top is another Japanese candle stick pattern with a short body found in the middle of two long wicks.
FYI3: Heikin Ashi candles can be found in Trading view under the candle stick section and by clicking the 4rd option; these work somewhat differently than regular candle sticks.
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Nota
You can clearly see how ETH is struggling with getting back above the yellow resistance line of June / September.1h chart
4h chart not looking that good
daily looking better
Nota
As you can see, it wasn't the first Heikin Ashi doji, but the second that preceded upward moves. However, we still need to break the yellow resistance line, and that's a tough one.
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