Good morning team,
When there is blood on the streets you buy, as the saying goes. Cryptos are down but to me, this looks like a corrective decline as the structure is only in 3 waves labelled ABC.
ETHUSD 4 Hour Chart
There is a clear 5 wave rally from the lows of 1800. There has also been a 5 wave decline labelled ABC, with 5 waves in the C leg. This ticks the box for an Elliott wave corrective decline. The 38% FIB retracement is the key level for pullbacks in the market. This will have a very good risk V reward ratio.
Trader X Program – Elliott Wave Corrections
The ETHUSD correction looks identical to the corrective ZIG ZAG formation we teach in the Trader X Program.
ETHUSD 1 Hour Chart
Generally, once a 3 wave correction occurs the market will break the previous high, however, we will use that as an initial target over the next couple of weeks.
Trade Setup: BUY STOP, entry price 2953, stop loss 2648 and take profit open but initial target set at 4028
Stop loss: 305 pips
Take profit: 1075 pips
Again on this position, it is a swing trade so we expect it to remain open for a while. There is a possibility of one more low before a rally so we will keep the position as a BUY STOP.
Contract size on Fusion and Focus markets is the same. 1 contract = $1 per pip.