ETHUSD LONG POST ANALYSIS
ETHUSD POST ANALYSIS
On August 27th I had made a post stating that I was looking to potentially go long ETHUSD. I had made this decision based on the fact that ETHUSD had been holding recent significant structure on the 4H chart as well as forming a nice squeeze of price on the 1H chart. Momentum is a great tool to use to be able to find high probability trade setups and it allows yourself to be truly selective with what you decide to trade. Little side note, think of it like this, when you see momentum think of it as INTEREST by a buyer or seller. Since we are all retail traders, maybe some of you are institutional but regardless nobody knows for sure whats going to happen next, we want to be trading WITH whoever moves the market. Waiting for momentum and/or interest in our setups allows us to see what they see. Think of it like that. The market is a RECEIPT of the transactions that have already occurred. OK back to the trade.
On the 1H timeframe I had seen that price was squeezing creating a descending trend line on the 1H timeframe. When I was analyzing the chart price action had showed me a very nice and healthy strong break above this descending trend line (showing me interest). This had caught my attention and led me to believe there may be a high probable setup to go long, so I waited. What did I wait for ? The re-test. The #1 sign AFTER you see strong momentum whether it is true or not. The pullback was very weak by the sellers confirming my bias on potential long opportunity. I waiting for price to come into recent significant 1H structure as well as wait for buyer INTEREST AGAIN, to confirm my final thoughts, and then the trade had made a nice strong push to the 294 price level, recent significant 4H structure. This trade held a good risk/reward ratio as well which is important for statistical probability in trading.
I really try to make these setups simple for everybody and I hope they're helping you out! Please like and follow me on TradingView for more trade posts and ideas! On to the next one!
Cheers!
On August 27th I had made a post stating that I was looking to potentially go long ETHUSD. I had made this decision based on the fact that ETHUSD had been holding recent significant structure on the 4H chart as well as forming a nice squeeze of price on the 1H chart. Momentum is a great tool to use to be able to find high probability trade setups and it allows yourself to be truly selective with what you decide to trade. Little side note, think of it like this, when you see momentum think of it as INTEREST by a buyer or seller. Since we are all retail traders, maybe some of you are institutional but regardless nobody knows for sure whats going to happen next, we want to be trading WITH whoever moves the market. Waiting for momentum and/or interest in our setups allows us to see what they see. Think of it like that. The market is a RECEIPT of the transactions that have already occurred. OK back to the trade.
On the 1H timeframe I had seen that price was squeezing creating a descending trend line on the 1H timeframe. When I was analyzing the chart price action had showed me a very nice and healthy strong break above this descending trend line (showing me interest). This had caught my attention and led me to believe there may be a high probable setup to go long, so I waited. What did I wait for ? The re-test. The #1 sign AFTER you see strong momentum whether it is true or not. The pullback was very weak by the sellers confirming my bias on potential long opportunity. I waiting for price to come into recent significant 1H structure as well as wait for buyer INTEREST AGAIN, to confirm my final thoughts, and then the trade had made a nice strong push to the 294 price level, recent significant 4H structure. This trade held a good risk/reward ratio as well which is important for statistical probability in trading.
I really try to make these setups simple for everybody and I hope they're helping you out! Please like and follow me on TradingView for more trade posts and ideas! On to the next one!
Cheers!
Penafian
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