Just sharing where i will be placing my new ETHUSD limit order long based on the uptrending channel support and resistance points and how i came to these decisions. I am placing my trades based on being bullish cause i believe we saw the bottom at 115+.
Nothing is 100% and anything can happen so it is important to consider carefully where to place stop loss orders to ensure there is some important risk management. There are many factors you can consider and here i have stated my reasons for deciding on these price points for my ETHUSD trade.
I also have to consider the fact that a Cup and Handle Pattern could play out for ETHUSD on daily chart (refer to link). And for this pattern to actually play out, according to my calculations, the price cannot correct lower than 166 for this pattern to be still be valid and play out. By the way, if you are curious, we are currently right at the top of the Cup on the daily chart. The next thing that should take place is a slight correction to form the handle. But who knows, the price may just keep uptrending after that rounded bottom pattern at 115+ area. When BTC hit the bottom at 3100+, there was a rounded bottom but the handle was never formed, it just kept uptrending from the top of the cup formation.
Hope it gives the newbies some additional information on what factors we can consider before deciding on the price points for our trades and stop losses.
This is not financial advice. Just sharing some things that I think about and hope it can help you too. Trade only with what you can afford to lose and divide your capital into many small portions as trading, especially margin trading is very risky. Always trade with care and never ever FOMO intp trades when you see sudden price movements.
I learnt that the hard way when i first started off.
Good luck!
Nothing is 100% and anything can happen so it is important to consider carefully where to place stop loss orders to ensure there is some important risk management. There are many factors you can consider and here i have stated my reasons for deciding on these price points for my ETHUSD trade.
I also have to consider the fact that a Cup and Handle Pattern could play out for ETHUSD on daily chart (refer to link). And for this pattern to actually play out, according to my calculations, the price cannot correct lower than 166 for this pattern to be still be valid and play out. By the way, if you are curious, we are currently right at the top of the Cup on the daily chart. The next thing that should take place is a slight correction to form the handle. But who knows, the price may just keep uptrending after that rounded bottom pattern at 115+ area. When BTC hit the bottom at 3100+, there was a rounded bottom but the handle was never formed, it just kept uptrending from the top of the cup formation.
Hope it gives the newbies some additional information on what factors we can consider before deciding on the price points for our trades and stop losses.
This is not financial advice. Just sharing some things that I think about and hope it can help you too. Trade only with what you can afford to lose and divide your capital into many small portions as trading, especially margin trading is very risky. Always trade with care and never ever FOMO intp trades when you see sudden price movements.
I learnt that the hard way when i first started off.
Good luck!
