Since early April, Ethereum has been moving in a descending channel. The price is now very close to touching the long-term uptrend line. Will the price bounce up from the trend line? Or will the price break down from the trend line? We will show you a simple way to accurately spot buy signals.
As we can see from the daily chart, the price has bounced up six times from this long-term uptrend line. Each time, we can see that a double bottom was formed. When there was a reversal, the price first broke the neckline of the pattern,with the daily candle closing above the neckline. Then the price falls down to test the neckline before going higher. This is a common recurring reversal pattern from this uptrend line. Therefore, next time when the price touches the long-term uptrend line, we will carefully observe the price movement to see whether the price will form a double bottom. Then we will wait for a breakout and place our buy entries at the neckline to capture the retest.
As we can see from the daily chart, the price has bounced up six times from this long-term uptrend line. Each time, we can see that a double bottom was formed. When there was a reversal, the price first broke the neckline of the pattern,with the daily candle closing above the neckline. Then the price falls down to test the neckline before going higher. This is a common recurring reversal pattern from this uptrend line. Therefore, next time when the price touches the long-term uptrend line, we will carefully observe the price movement to see whether the price will form a double bottom. Then we will wait for a breakout and place our buy entries at the neckline to capture the retest.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.