This is merely a trend analysis post. ETH has broken out of a range and is edging higher. Till now, we have been selling at the range top and buying at the range bottom. As there is a change in the market structure from range to uptrend, we can draw an upward moving channel as a guide to initiate high probability trades.
If the channel continues to hold, following rules can be followed to maximize your results:
If the channel continues to hold, following rules can be followed to maximize your results:
- Usually, you want to avoid trading the breakout of the upper trendline of the channel.
- Avoid missing out on buying opportunities near the lower trendline. Ride your long winners as the price can continue to move higher with the trend inertia.
- Selling near the upper trendline should be done either with lower quantity of for a shorter term quick scalp basis.