Hello traders and welcome back on my profile, here is Gianni, and I hope you can enjoy this detailed analysis on ETHUSD.
As always, I don't use technical analysis for market prediction, because predicting is 50/50, but I use it to calculate my risk reward in case I would position myself in the market.
My general thesis for the day is pretty short, and following, the logic behind this thesis.
Monday, opening range of the week, established the current monthly high, breaking into the low of Friday (lower low) at the end of the day. Other time frames/big players might be in play and potentially the week can setup for a pump and dump.
Tuesday performed a strong pumping day, breaking through the Monday high and expanding the range higher, closing as well in breakout long.
Wednesday the market pretty much consolidated for the whole day, coming back inside the opening range high, and closing as first red day.
First red day is only a bearish signal, it doesn't mean that the market will drop certainly, but it gives you a signal the potentially long might be trapped in the wrong direction, increasing the chances of reversal, the day later or few more days later.
Today, Thursday, the market kept breaking lower, and it looks like coiling into the yesterday low of day, definitely a sign of weakness which I will keep in consideration.
8:30am and 8:40am NYT major red news are on schedule, I would not touch this market before that time, avoiding any possibility to be stuck in the trade.
How would I take this trade?
Simply I will be looking for any sell high opportunity after the news, reinforced with bearish price action, as triple tops, double tops and any kind of reversal patterns into the most recent high in place.
What about a long view?
Actually I'm not interested today, it can go higher, it can retest the weekly high, it can consolidate, it can do EVERYTHING, I don't care, my only focus is aligning my bearish thesis with a bearish setup.
I won't take in consideration any long opportunity for the day.
Overall, the market strongly pumped up during the previous week, I do not expect any crazy move, I do not think that this market trapped volume enough for a huge bearish collapse.
The potential opportunity of today, if presented, will be targeting the current weekly low (Monday low).
Stay tuned for further update during the NY session
As always, I don't use technical analysis for market prediction, because predicting is 50/50, but I use it to calculate my risk reward in case I would position myself in the market.
My general thesis for the day is pretty short, and following, the logic behind this thesis.
Monday, opening range of the week, established the current monthly high, breaking into the low of Friday (lower low) at the end of the day. Other time frames/big players might be in play and potentially the week can setup for a pump and dump.
Tuesday performed a strong pumping day, breaking through the Monday high and expanding the range higher, closing as well in breakout long.
Wednesday the market pretty much consolidated for the whole day, coming back inside the opening range high, and closing as first red day.
First red day is only a bearish signal, it doesn't mean that the market will drop certainly, but it gives you a signal the potentially long might be trapped in the wrong direction, increasing the chances of reversal, the day later or few more days later.
Today, Thursday, the market kept breaking lower, and it looks like coiling into the yesterday low of day, definitely a sign of weakness which I will keep in consideration.
8:30am and 8:40am NYT major red news are on schedule, I would not touch this market before that time, avoiding any possibility to be stuck in the trade.
How would I take this trade?
Simply I will be looking for any sell high opportunity after the news, reinforced with bearish price action, as triple tops, double tops and any kind of reversal patterns into the most recent high in place.
What about a long view?
Actually I'm not interested today, it can go higher, it can retest the weekly high, it can consolidate, it can do EVERYTHING, I don't care, my only focus is aligning my bearish thesis with a bearish setup.
I won't take in consideration any long opportunity for the day.
Overall, the market strongly pumped up during the previous week, I do not expect any crazy move, I do not think that this market trapped volume enough for a huge bearish collapse.
The potential opportunity of today, if presented, will be targeting the current weekly low (Monday low).
Stay tuned for further update during the NY session
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.