Looking at the 4-hour candle graph, there are two scenarios of how ETH can be traded. We can see higher lows and lower highs being formed in this chart. When such a pattern is seen, a wedge is formed. At the vertex of the wedge, ETH can either drop or increase.
The resistance line is valid as the 4-hour candle touches it thrice. However, the support line is not yet valid as the 4-hour candle only touches it twice.
Scenario 1 - It breaks the wedge and increases.
For this scenario, I would wait for 2 consecutive green 4-hour candles and then buy.
Scenario 2 - It breaks the wedge and drops in price.
Similarly, I would wait for 2 consecutive red 4-hour candles for this scenario and then sell(short).
Credits: TheSignalyst
Comment below which scenario is more likely to happen, in your opinion, and why? What is your trading plan?
If you like the idea, do not forget to support with a like and follow.
The resistance line is valid as the 4-hour candle touches it thrice. However, the support line is not yet valid as the 4-hour candle only touches it twice.
Scenario 1 - It breaks the wedge and increases.
For this scenario, I would wait for 2 consecutive green 4-hour candles and then buy.
Scenario 2 - It breaks the wedge and drops in price.
Similarly, I would wait for 2 consecutive red 4-hour candles for this scenario and then sell(short).
Credits: TheSignalyst
Comment below which scenario is more likely to happen, in your opinion, and why? What is your trading plan?
If you like the idea, do not forget to support with a like and follow.