Ethereum Has Potential To Move Lower (Trades Choosing Explained)

15 Nov 2020

Right now Ethereum (ETHUSD) has the potential to move lower.

Its price closed below EMA10/21.
And we are seeing bearish divergence present with the RSI and MACD.

The trading volume is very low, we are on a weekend though, and lately, we have been seeing low volume and Bitcoin is also showing signs of a potential retrace...

Support levels are marked on the chart.

Conditions for change
The bulls have the upper hand and the bearish signals are still weak. If prices move back above EMA10 and EMA21, this analysis is invalidated.

How I Choose What To Trade
We do not trade these types of setup, we find it hard and high-risk.

Instead, we go for very low risk by looking for those pairs that are ultra-low.

• We look for those trading low near support but with signals that are pointing to a change of trend.
  
  
• We use a very tight stop-loss in most cases.
  
  
• We go with low risk and very high potential rewards.
  

You can have a 10-20% risk stop-loss while having a 200%-300% potential profits target... But for this, we look at those that are sitting low and lesser-known.

If you check my profile, you can find many examples of those.

The plan is to make money while trading...
There is no need to go for big-name coins, it is better to go for those that are easier to read, easier to trade, lower risk, and again, higher potential rewards.

Namaste.