Bought ETHUSD By The Breakout Pullback Strategy That I Forecasted Previously
Crypto Analysis #5
Buying the ETHUSD according to my BREAKOUT-PULLBACK Strategy
Hey there, TraderSaan is here.
Today I am going to share a quick update in ETHUSD which I have set yesterday, if you missed the forecast, then please do not hesitate to pay a visit to the link below.
Is Ethereum Ready To Go Up? Here Is My Take
The strategy I am going to use is called BREAKOUT PULLBACK strategy. If you don't know about the strategy, please pay a visit to the link below.
The Breakout Pullback Strategy For Trading
I am actually a swing trader, meaning I hold my position for 2-3 days or more. So I usually trade at the timframe of 4 hour (H4), 1 hour(H1), or occasionally at 30 miniutes (M30). And one more thing is that I analyze the chart in tradingview and take trade in MT4 (for FOREX) and Binance ( for CRYPTO).
Fundamental Outlook: Bullish
ETH
• Sanctions after sanctions of Joe Biden for weakening Russia economiclly appreciate the crypto currencies. Russia is using crypto to conduct their business deal and as the ETH is one of the most popular crypto currencies so far.
• Metaverse is the future, so for that reason, cryptocurrencies are going to be appreciated.
So I am fundamentally bullish on ETH.
USD
• The economy of the US is very strong after the mid june 2021, that is when the Joe Biden new policy came out. But currently the USD hold a mixed bias as the Fed chairmain Jerome Powell has sounded hawkish in the last press conference. At the same he also has added the uncertinity of the world economy and a foggy conditon in monetary policy.
• Also the NFP of the US in this month was not good if we consider the job number which is decreased.
• On the other hand, retail sentiment is bearish for the USD.
To conclude, I am neutral in USD
Technical Analysis:
The charts shown below are all in the timeframe of H4 (4 hour)
• Price has broken a resistance zone in last few days and the pullback of the breakout has already been placed. So my perception is that price is going to make this broken resistance zone as a support zone which is the price action philosophy. And I think market will go up in the shown direction in the chart below.
ETHUSD, H4, price is supporting by a broken resistance zone
Image source: tradingview, prepared by me
• If we consider the Fibonacci retracements tool to take a gauge of how much the pullback move can happen We see, in the chart below, that price has already made a move upto the golden zone of Fib(the golden zone is the zone between 50&61% zone of the fib ratio). So this zone is psychologically very improtant and that is my possible entry zone.
ETHUSD, H4, price is at Fib golden zone
Image source: tradingview, prepared by me
• For the indicator confirmation, I used to use Moving Averages like 20, 50, 100, 200 period etc. Here I use 50 & 200 MA to see the momentum. So in the chart below, we see that the 50 and 200 MA are aligned upwardly which indicates buyers pressure.
ETHUSD, H4, 50&200 MA are aligned upwardly
Image source: tradingview, prepared by me
• Now that we have made enough analysis to buy the pair ETHUSD. Let's talk about the Entry, Stop Loss, Target Profit.
Entry Price is at 3220.55
Stop Loss is at 3123.00, which is just below the support zone, that means I am only risking 97 points.
Target Profit is at 3841.15, that means my target profit is of 621 points. And don't think that this level is fixed as my wish, this level is actually a resistance zone.
Risk To Reward Ratio is of 1:6, i.e., for eg., I am risking 97 dollars to get 621 dollars. So it's pretty healthy risk to rewrad ratio.
ETHUSD, H4, Entry Price, Stop Loss, Target Profit
Image source: tradingview, prepared by me
• This screenshot shown below just before 5 minutes as the time I upload this post. This is one my demo account just for the blogging or writing the post. And the price is going up with the floating profits of $7600.
ETHUSD, H4, the real position
Image source: tradingview, prepared by me
OK, this is for today
I always take a trade when my fundamental and technical analysis say the same thing. As follows:
Case I
Fundamental = buy, Tchnical = sell, that implies Not To Trade
Case II
Fundamental =sell, Technical = buy, that implies Not To Trade
Case III
Fundamental = buy, Technical = buy, that implies Jump In For Buying
Case IV
Fundamental = sell, Technical = sell, that implies Jump In For Selling
Disclaimer: This is not any financial advise or trading mantra. My purpose is to help traders to learn. This post is made for completely educational purpose. Hope it helps.
Thank you very much if you make it to the end. Happy trade.