RE: Ethereum TA Discussion: Part 2 (A few things I missed)
Interesting analysis. As of right now as I type this, Eth is sitting at $223.15. If I were to buy Eth according to the 'buy the breakout' strategy that you described, at this point I'd probably buy once it hit back up to $230 again. I'm just starting to think about this stuff from a day trading perspective, but my rationale for this would be that it makes sense that it would be able to come back up to that position again since it was there a day ago. Once it gets there, there's likely a good chance that it can go up a bit further, so I would determine a price where I would sell it again too....say $240 or something like that....and then just wait until that happens. Of course if it goes down...then that's not the greatest....but you could likely safely hold until it gets back up to $240 again since it's not inconceivable for it to be there since it's been there before too.
Thanks for your comment! I was away... but at the time, I sold at $225. Reason being is that we got a 'lower high' and the distance between that high and the previous high, was greater than the distance between the previous high and the one before that. In other words, we seemed to be curving downwards.
In fact, I also put in a stop buy order too, just in case I was wrong (at around $235). Of course, it did not trigger...and so, I was able to cut my position pretty early and it worked out reasonably well for me.
Now: the 12-hour EMAs have crossed in the negative direction. Therefore, even though I'm tempted to buy in right now as the price is lower, my 'rulebook' is telling me to definitely stay away!!😃At some point either sooner or later this will change, but right now the TA (as well as btc uncertainty) allows me to have a few days away from trading (which is nice too ;) ).
Hope you're trading is going ok!
P.S. once the b-bands started to move in either direction, which they did(downwards).....then, it's no longer a potential breakout scenario in the same way. Sure, I could leave a stop buy order in place, but the price to chose would then be much more arbitrary .... and so probably I would just go back to using other TA tools (EMAs, MACD,etc) until we got the next b-band tightening situation, if that makes sense?