Position: Slightly Bullish.
To be clear, I have been long since my martingale strategy worked out great and my average buy is at $533. If you are following me, I hope you got in and scooped up some of these prices as it fell and realized how effective employing a martingale strategy is. Were you panicking during the sell-off? I wasn't. Now we are in a great position to profit. The question at this point is: when do we get out?
The first thing we need to realize is that we are in an overall bear market. Could this be the bottom? Possibly. But we made a lower low. A Significant one at that. Ether had a low of 600 and it broke it by roughly $130 to the downside and we need to take note of that. We also need to take note that we have had a solid rebound and push up and now we need to see where it heads.
The 1st major point of resistance is 600. While I think it's going to break through it, depending on how it reacts will be critical. As long as we don't break below the 555-560ish level, we are in good shape for a pushup to at least the 675-700 level. Since I am a trader, I will be looking at this point to most likely get out of the market. At this point, we will have a lot of indicators converging on this area as resistance. What would ratify this more is if RSI shows divergence and MACD starts slowing down, but we won't know that until we are there and if it happens at all! Here is what we have going on which we can see:
1. 2 Trend lines converging on this area.
2. Fib resistance at the 50 fib area from the most recent peak
3. Resistance at this 700 level.
Everyone has different TA, so we need to look for points that have a "confluence" of indicators that lots of people will look at. This 675-700 area is the first major one on the upside. Even though 600 is the TECHINCAL resistance after it broke that level to the downside, and it still could go down from here, I still think this 675 level will be the level to stop any sort of rebound IF it happens. All though we will watch this 600 level carefully, we will watch how it reacts even moreso to this 675-700 area.
Happy Trading everyone. Don't stress, pick your points and don't use leverage.
-Sherem
Check out my last call with how I got my average buy at $533 -
To be clear, I have been long since my martingale strategy worked out great and my average buy is at $533. If you are following me, I hope you got in and scooped up some of these prices as it fell and realized how effective employing a martingale strategy is. Were you panicking during the sell-off? I wasn't. Now we are in a great position to profit. The question at this point is: when do we get out?
The first thing we need to realize is that we are in an overall bear market. Could this be the bottom? Possibly. But we made a lower low. A Significant one at that. Ether had a low of 600 and it broke it by roughly $130 to the downside and we need to take note of that. We also need to take note that we have had a solid rebound and push up and now we need to see where it heads.
The 1st major point of resistance is 600. While I think it's going to break through it, depending on how it reacts will be critical. As long as we don't break below the 555-560ish level, we are in good shape for a pushup to at least the 675-700 level. Since I am a trader, I will be looking at this point to most likely get out of the market. At this point, we will have a lot of indicators converging on this area as resistance. What would ratify this more is if RSI shows divergence and MACD starts slowing down, but we won't know that until we are there and if it happens at all! Here is what we have going on which we can see:
1. 2 Trend lines converging on this area.
2. Fib resistance at the 50 fib area from the most recent peak
3. Resistance at this 700 level.
Everyone has different TA, so we need to look for points that have a "confluence" of indicators that lots of people will look at. This 675-700 area is the first major one on the upside. Even though 600 is the TECHINCAL resistance after it broke that level to the downside, and it still could go down from here, I still think this 675 level will be the level to stop any sort of rebound IF it happens. All though we will watch this 600 level carefully, we will watch how it reacts even moreso to this 675-700 area.
Happy Trading everyone. Don't stress, pick your points and don't use leverage.
-Sherem
Check out my last call with how I got my average buy at $533 -
Komentarz:
ETH broke our 850 support level. BTC has not broken down past this 8500 level which is it's saving grace, if we don't get some sort of rebound up it's not a good sign.
Komentarz:
Ether is trickier to place a stop on this in my opinion...
1. Because it's below our break-even point.
2. If we get another wave down in the markets it could go down quite significantly. Let's say BTC goes to 6k, then ETH is going to the 300 area at least. -We still have 50% of our portfolio that we can put down there which would lower our average cost to around 420. But that is riskier.
-Or we could place stops. Currently, it's at the bottom of this small channel. Technically, it could push to 505 and then snap back. A proper stop is just below 500.
Lastly, we can taper our positions off to reduce our risk in the event of a move down. This is what I will most likely be doing. Reducing positions to reduce risk and limit loss. I can also take profits on my lower positions and put them back on in the event of a move down. Lots of ways you can do it. Do what makes you not stress about having open trades.
1. Because it's below our break-even point.
2. If we get another wave down in the markets it could go down quite significantly. Let's say BTC goes to 6k, then ETH is going to the 300 area at least. -We still have 50% of our portfolio that we can put down there which would lower our average cost to around 420. But that is riskier.
-Or we could place stops. Currently, it's at the bottom of this small channel. Technically, it could push to 505 and then snap back. A proper stop is just below 500.
Lastly, we can taper our positions off to reduce our risk in the event of a move down. This is what I will most likely be doing. Reducing positions to reduce risk and limit loss. I can also take profits on my lower positions and put them back on in the event of a move down. Lots of ways you can do it. Do what makes you not stress about having open trades.
Komentarz:
chart update:
