ETH can be seen on the daily chart caught in a wedge/pennant pattern. We have to remain bullish on this pair both fundamentally and technically due to the moving average and pattern, with allows for us to establish a bias.
Typically we are taught to trade the breakout of this pattern but given countless times I have witnessed a false breakout/fakeout before whipping back into range is endless and it's not confirmed that this pattern will continue to hold and move in the direction we are trading in. Ideally yes, we want this pair to break to the upside and give us a nice opportunity long, but will it happen in the way we want?
- The downside profits are much larger than the bulls
- if the price breaks with a level of resistance waiting above
- We ideally will wait for a break and restest at this stage as a range could also be in play
Trade the range.
Typically we are taught to trade the breakout of this pattern but given countless times I have witnessed a false breakout/fakeout before whipping back into range is endless and it's not confirmed that this pattern will continue to hold and move in the direction we are trading in. Ideally yes, we want this pair to break to the upside and give us a nice opportunity long, but will it happen in the way we want?
- The downside profits are much larger than the bulls
- if the price breaks with a level of resistance waiting above
- We ideally will wait for a break and restest at this stage as a range could also be in play
Trade the range.
