***excuse the balloon overlaps, TV loves to rescale my charts **The strategy results should be ignored, I built the MASIC-N indicator ages ago and use it as a baseline, not to trade on!!!
Today I had a friend approach me about her selling her ETH at $515 and feeling frustrated that she was missing the rally. This left me feeling inspired, so in today's chart dive we'll be covering four things
The basics of my channel trade method
The basics of trading Gann fan angles
The basics of Fib levels
A potential intraday short utilizing fib ratios & Gann angles
1. CHANNELS ***Note that theres many ways to trade channels, this is my method; everyone changes things to work for them, this is good! Adapt what you learn and make it work for you!
Major channel range is Major peak to Major low
Minor channel range is Minor peak to Minor Low
Break out range is simply: Major channel-Minor channel for Long Entry Minor channel-Major channel for Short Entry
The breakout level is taken from the breakout range added or subtracted from the major channel for long/short respectively
Entry is initiated at the close of the second candle outside of this breakout level
Stop Losses are placed at major channel peak or low for long/short
Move stop to break even after price move equal to 50% of breakout range
2. GANN FANS (these rules are absolutely imperative!!!) ***These are constantly misused on TradingView, lets set the record straight! **I've only listed the 1/2, 1/1, and 2/1 angles to simplify things as these are all thats needed for a baseline "loose" Gann fantrade
price/bar scale MUST BE 1/1!!!!! (seriously, if its not 1/1 then you're just drawing lines, not doing a gann analysis)
Pick a Major high or Major Low
Use the trend angle tool to draw 45 deg. angle in direction of trend.
Overlay gan fan with 1/1 line locked to 45 deg. angle
Watch for 1/1 crossover against trend direction
Buy/Sell after close of second candle breaking out from 2/1 line
3. FIBONACCI Retraces.
I see people argue about the efficacy of fib levels all the time, stating the ever present "draw enough lines and something will correlate" argument.
So I'll make this one easy:
These are simply guides NOT guarantees! lol
4. THE TRADE!!!!
WHY:
Unsuccesful breakout of 1.618 fib line
Possibly about to close the first bar below Gann fan
RSI below 50 & falling
MACD Bearish Divergence
BTC (used as crypto index) testing 48 EMA
Stochastic RSI below 50%
SETUP:
Enter Short after second bar closes below Gann 2/1
Target 1 @ 1.414 fib level ($623.60)
Move S/L to $625 at breakout below
Will update depending on trend continuation
***I really will do my best to update this as i trade ETH daily and will be paying attention to the price moves.
Happy trading folks! -------------------------------------------------------------------------- DISCLOSURE: This analysis is meant for educational purposes only. You trade at your own risk!
Still watching this one, haven't initiated yet, that weak little hammer low wasn't confirmatory in my book but were still playing the 2/1 line AND the 1.618 fib again so opening the trade is still a possibility depending on where things go.