Watching this beautiful ascending triangle form on the Ethereum daily chart.
We had those two highs kissing 400 in June and September, but the crash after September only hit a low of 200, putting in a higher low.
We draw an ascending trend line support connecting the lows in May, July, and September, creating the ASCENDING TRIANGLE pattern.
An ascending triangle should resolve itself in the direction of the trend, in this case UP.
Added to that, we have a strong up trending 200 day moving average.
BULLISH THESIS - Looking for the right confirmation: We put in a higher low around 250 and bounce off of trend line support and the converging 200 day moving average. We head up towards the highs at 400. After a small consolidation around 400 we breakout.
THE TRADE: Total Position: .5-2% of Account Value (conservative - aggressive) Add 1/3 position here in the consolidation range anticipating the bounce off the trend line support. Add 1/3 position on a small consolidation around 400. Add final 1/3 position on breakout of 400. Add more on a retrace and hold of 400 level.
Stop should be under the trendline and 200 day moving average. On a breakout of 400, the stop should be under 400.
Target: 600, which is 161.8% retracement of consolidation range of the Ascending Triangle
------------
!! PM me with any trading questions !!
MY TRADING METHOD: I keep my analysis simple. Good analysis always is. I use Price Patterns, Moving Averages, and RSI for my analysis. I use the 1 day for trend analysis and 60 minute for trade entry For my Targets I use Fibonacci projections, measured moves, support and resistance. Successful trading means proper risk sizing and trading small so you can stay in the game.