False Breakout or Bull Trap Fakeout?
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It’s an interesting time in the life of ETHBTC.
Black arrows and vertical dashed line showcase the apex of the triangle on MACD lining up precisely with the apex of the pink price action bullish pennant, which we have just broken out of and then fallen back into.
Turquoise box is TP zone if/when we get confirmation of a bullish breakout of this pennant.
Local historical horizontal s/r lines on chart in blue for your viewing pleasure.
The yellow ascending line near current price action is a dynamic local s/r to watch right now for signals and clues, and has provided a bounce point today for the fall back into the pennant, as expected.
Aggressive bulls might long here, with stop loss set *below* the .236 swing fib retrace (.07).
If we do break down and lose .07, that would also signal a short sell and indicate further range/downtrend.
Tip: It’s usually good strategy to stage orders an arm’s length away from obvious s/r lines to avoid being shot by stop hunters, as long as you can afford the added risk of being stopped out at a slightly greater loss when your trade fails. Set yourself with a smart trade from the beginning to minimize risk. Don't chase the market. Waiting for your best opportunities to present themselves and sticking to your plan will save you so much time and heartache. Read your charts, set your orders, walk away.
Measure twice, cut once.
May all of life’s treasures be yours.
Please like, comment, follow, share!
I truly appreciate and celebrate all engagements with my published charts.
Black arrows and vertical dashed line showcase the apex of the triangle on MACD lining up precisely with the apex of the pink price action bullish pennant, which we have just broken out of and then fallen back into.
Turquoise box is TP zone if/when we get confirmation of a bullish breakout of this pennant.
Local historical horizontal s/r lines on chart in blue for your viewing pleasure.
The yellow ascending line near current price action is a dynamic local s/r to watch right now for signals and clues, and has provided a bounce point today for the fall back into the pennant, as expected.
Aggressive bulls might long here, with stop loss set *below* the .236 swing fib retrace (.07).
If we do break down and lose .07, that would also signal a short sell and indicate further range/downtrend.
Tip: It’s usually good strategy to stage orders an arm’s length away from obvious s/r lines to avoid being shot by stop hunters, as long as you can afford the added risk of being stopped out at a slightly greater loss when your trade fails. Set yourself with a smart trade from the beginning to minimize risk. Don't chase the market. Waiting for your best opportunities to present themselves and sticking to your plan will save you so much time and heartache. Read your charts, set your orders, walk away.
Measure twice, cut once.
May all of life’s treasures be yours.
Please like, comment, follow, share!
I truly appreciate and celebrate all engagements with my published charts.
Note
We have tested and bounced at the .236 fib, .07 in a break down from the triangle. Hopefully you put your stops *below* this level as I recommended, and avoided being stop-hunted. Continued holding of this level would be bullish for ETH, and likely the entire alts space. As long as BTC continues to hold above 6k, I'm expecting a relief rally if not a (slow) reversal across the entire crypto market soon.
Note
BTCUSD did close below 6k yesterday, and ETHBTC is threatening to close below .07 today. Lots of indecision in the market right now. Stick to your R:R.Note
Those of you who held on tight and continued accumulating alts on this dip (as I did) have been rewarded.
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