Disclaimer: This is not advice, this is just information that can be consumed and used however you may wish - but it is not advice or guidance.
Hi all,
In preparation for another potential drop in price, I am writing a post on a potential trade opportunity with ETHUSD.
Potential Profit based on (similar figures in post):
25%
Results:
Data collection is complete.
Analysis is complete.
Trade is in the planning/preparations phase.
Alerts are set at 7% and 10% below the base and also at each of you buy orders (so you know to set your sell orders!)
You can set your buy orders now or wait until your alerts go off.
Chart:
Base: 718.32
Previous data (analyzing the chart) shows me:
~23% Median Crack
~37% Median Bounce
Buy orders:
I am going to be slightly less specific on providing exact buy orders but I will provide ranges and say a few general statements:
Tips:
Make sure you layer in
I typically recommend buying during a panic sale - at least 10% below the base
Go in size closer to the median crack (increase buy order amount)
Approximate Buy Ranges:
1ST BUY LAYER: Around $645 USD (20% of stack)
2ND BUY LAYER: Around $610 USD (30% of stack)
3RD BUY LAYER: Around $570 USD (50% of stack)
Sell Orders:
I am going to be slightly less specific on providing exact sell orders but I will provide ranges and say a few general statements:
Tips:
Try to sell/participate in every bounce (you can sell 30% of whatever you choose to sell - some people sell their lowest buy order layer, others will sell 30% of the entire stack that was purchased below that bounce)
If you plan on holding them then anywhere you sell for profit is good
Also, I wanted to reference the "Last Cracked Base" principle which is good to know about when trading below such a massive base especially in a bear market. The post describes it well but I will give it a shot. Basically, if the crack exceeds the average typical crack, then you want to try and sell on the next bounce close to where the closest base was cracked. I am going to steal a screenshot from the post (I will give credit though):
As you can see, the price did not return back to the base and kept going down, but he was able to sell/predict that the first bounce would go up to the lowest most recent base-crack. This is a good way to get out of a trade that is "getting away from you"
