Ethereum has been experiencing wild price action over these last few days. For swing traders, this type of action is usually not what you want but for day traders its a dream as you can play the supports and resistances.
https://theicojournal.com/wp-content/uploads/1212.png 581 1270 Satoshi Heavy /wp-content/uploads/logo-header.png Satoshi Heavy2018-05-16 08:21:582018-05-16 08:22:06Ethereum Continues Wild Price Fluctuations; Dream Action For Day Traders
Diving into the H4 chart we see a few things, one being the STOCH RSI is coming in for a reset and the RSI does show small hidden bull divergence. We have also been riding on a trend line that’s weeks old. We have failed to get 2-4 consecutive H4 closes under and therefore we have been riding it as support. In order to again find the support we need this candle to close above and the next open above as well. If we can get 2-4 H4 closes above we can open for a RISKY long entry, Ideal entry is closing above obvious resistance. The targets for longs are in green circles.
In order for us to short, we need to have 2-4 closes under the trend line. the targets are the red circles.
Remember to always practice good risk management and use a stop loss.