Hello everyone, I am bluenix.✔️
I will post at least one analysis a week, so we can keep making money no matter what the direction of the market is. I think the best way is to use Price Action. I've been trying to improve on this for a while now.
Fibonacci Retracement is a tool that many people know and I use a lot. In most of my analyses, it gives me a good indication of the return locations. Of course, we have to keep our risk management in the first place in every trade.
Let's start with Ethereum.
I'm going to show my opinion about Ethereum, which I've been following for a long time.
In the Demand zone, as I expected, the buyers did not allow the price to fall below this point.
After the price rose again from this region, the 1297.73 region we set for LTF (Lower Time Frame) is now our Range High (RH) region.
After determining this zone, we determine our A-B zones using the Fibonacci Retracement tool and now we are waiting for the C zone for the return. This is OTE (Optimal Trade Entry).
This is where we expect the price to turn first. If the price goes lower than this, the Demand Zone and Range Low (RL) zone of 1215-1220 will be waiting for us again.
If the price finds buyers again and moves up, our first target is the Range High zone at 1297.73 and the upper resistance zone at 1312.99.
I want to look a little bit at BITCOIN chart.
I don't think it's right that we should only trade based on one reason. We shouldn't open trades based only on Fibonacci Retracement or only on the moving average. We should look at all of them as a whole. We can look at all of them and wherever they give us ideas to support us, we can benefit from them.
Looking at it, the graphic looks very nice, doesn't it? Our Demand Zone moved the price up with a strong candle and the price has continued to rise ever since. The Ote (Optimal Trade Entry) zone worked very well. The price has not yet crossed the Range High zone. This raises the possibility of sellers dominating from the Supply zone.
Hopefully, it will start its upward movement again with a strong candle from the area I have drawn in purple. But the first place I am waiting for is the Equilibrium (EQ) zone. The balance point of the price is the EQ zone. It is the exact middle zone between Range High and Range Low.
Smart Money managers may want to raise the price to the Range High zone. Why? To close the stops of those who opened Short trades there. They may anticipate that we will think about it and move the price higher.
This time, they can make everyone hopeful that the bull season is starting and they can take those who open Long positions inside and suddenly drop the price back into the range area with hard candles. :)
If there are more Short traders, they will raise the price, if there are more Long traders, they will lower the price. This is their job :) What we need to do is to side with their next move.
I will talk about this information in my next article.
-MO-Monthly Open
-WO-Weekly Open
-Monday High
-Monday Low
Thank you for your time, see you soon.🙂