ETHUSD Perspective And Levels: Corrective Wave 300 Support.
ETHUSD Update: Corrective wave in play with one more leg to complete which can lead to a retest of the low 300's. A break above 334 will signal the next leg up is in progress.
In terms of wave count, we are in the C wave of subwave 2. C waves are usually impulse patterns and often make people uncomfortable. We have nothing to worry about because upon completion of this wave, there may be an attractive buying opportunity.
I am looking for this wave to complete in the low 300's, or even possible mid 290s. In that price range there is a .618 minor support that is relative to the most recent bullish swing. So it would be a convenient area to look for reversal patterns such as a double bottom on a smaller time frame. The next leg up should be the subdegree Wave 3 which in terms of proportion can lead price into the 380 resistance area or higher.
A long taken in this area would prompt me to place a stop in the mid 270s, and targets at the 345 and 374 levels. Why two levels? Because once I'm in a trade, my goal is to reduce risk and locking in profit along the way is one way I do that.
We have no control over profit targets, the market may or may not reach them, but we can control our risk. As you learned from my previous trade, I turned it into a risk free trade as soon as the market let me. It took me a long time to learn this lesson, but the focus on trading should be on making a good trade, not the profit. Profit follows good trades. It is counter intuitive, but if you manage to gain enough experience, you will eventually understand this.
In summary, this market is still poised to go higher in the long run. As long as the 279 and 263 supports hold, chances are we push to new highs sooner than not. At the moment we have one more leg of the corrective wave to play out which can complete in an area that may offer a buying opportunity. I have been saying this over and over, all this market needs is a good catalyst to capture the attention of investors and the next upswing will materialize quickly.
Comments and questions welcome.
In terms of wave count, we are in the C wave of subwave 2. C waves are usually impulse patterns and often make people uncomfortable. We have nothing to worry about because upon completion of this wave, there may be an attractive buying opportunity.
I am looking for this wave to complete in the low 300's, or even possible mid 290s. In that price range there is a .618 minor support that is relative to the most recent bullish swing. So it would be a convenient area to look for reversal patterns such as a double bottom on a smaller time frame. The next leg up should be the subdegree Wave 3 which in terms of proportion can lead price into the 380 resistance area or higher.
A long taken in this area would prompt me to place a stop in the mid 270s, and targets at the 345 and 374 levels. Why two levels? Because once I'm in a trade, my goal is to reduce risk and locking in profit along the way is one way I do that.
We have no control over profit targets, the market may or may not reach them, but we can control our risk. As you learned from my previous trade, I turned it into a risk free trade as soon as the market let me. It took me a long time to learn this lesson, but the focus on trading should be on making a good trade, not the profit. Profit follows good trades. It is counter intuitive, but if you manage to gain enough experience, you will eventually understand this.
In summary, this market is still poised to go higher in the long run. As long as the 279 and 263 supports hold, chances are we push to new highs sooner than not. At the moment we have one more leg of the corrective wave to play out which can complete in an area that may offer a buying opportunity. I have been saying this over and over, all this market needs is a good catalyst to capture the attention of investors and the next upswing will materialize quickly.
Comments and questions welcome.
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