The 503 to 541 (.618 of recent structure) is a minor resistance that price is fluctuating within. The previous candle in this chart is an , and the current candle has broken the high of the . This is a buy trigger, but you must remember not all buy triggers are created equal when it comes to risk. Context is key in a situation like this. I am all for being long this market, but NOT on a buy signal in the middle of a . All markets retrace, and this one will too.
The fact that the major was taken out with conviction is a long term sign. This means buying pullbacks is the better choice since momentum is now favoring the long side. The newly established is the defining factor for this move. Until it is compromised, this market should remain strong. So where is the best place to buy?
In previous reports I was writing about the 432 and 451 resistance levels that required price to break above in order to confirm that the bulls are in control. These levels which were old resistance are now more likely to act as a new support and it just so happens to be in the vicinity of the . This is the first area I will be watching. If price never gets there, then I have no reason to buy.
In summary, as amazing as this short squeeze has been, buying at the high of it is an ineffective behavior for any time frame of trader. All markets retrace, just not always to the levels that we would like. A trading plan begins with formulating a general perspective and then evaluating levels AHEAD of time. Price will either retrace to the predetermined level, or it will not. If it chooses not to, then you simply adjust and find the more relevant levels. Jumping into a market because it looks great is usually worst time because the risk is higher and potential lower even after a standard buying signal. There are plenty of support levels that offer more attractive reward/risk opportunities, it is just a matter of waiting it out. As soon as a quality signal appears, it will be sent out to our S.C. community.
Questions and comments welcome.
Sure. Eth hitting 1200 dollars Dec 2017 - pipe dream ha. As for smart money - you bought Eth at 8 dollars last year March ? No ? Guess who did.