Thursday July 14, 2016
As I outlined in my July 8 post, ETH developed a bullish pattern with a target of $15+. ETH has hovered in a very tight range well over a week with almost no volume.
Today we’ve seen a small improvement in both price and volume. If the current pattern is playing out, this should not be a head fake. If we drop back down towards $10 and lower for more than a day from here, then it’s more likely something else is going on and I’ll likely be adjusting my trading position.
One possible trade strategy is to ramp up my position to 100% or more and have a clear exit strategy more in terms of time than even price (though you have to have your limits!) Will be watching closely as hard fork dates come and go. If I do any trading like that I’ll update here and/or on twitter.
Patterns are a combination of time and price. While it’s possible for a pattern to extend way beyond its normal time frame, it’s not typical and shouldn’t be ignored. Extended time decreases the probabilities of that pattern’s successfully reaching targets.
That’s where we are today with ETH.
The longer bitcoin doesn’t drop, the lower the probability gets that it will reach the current pattern’s 375-425 range.
NOTE: NOTHING IN MY POSTS IS INTENDED TO BE TRADING ADVICE. Please do not base your trades on any information presented in the materials on this blog as it is for information and entertainment purposes only. You are 100% responsible for your own trading decisions.