Using weekly chart as daily chart seems to have a lot sudden movements and noise that end up not effecting the long term trend. This noise often is causing traders to make short term poor decisions on purely emotion.
Indicators used and purpose
Conclusion
After reviewing this chart I believe that watching to see if ETH can break above 21 MA will be indicator for movement once volatility increases again. If it stays below 21 MA for next couple weeks look for some downwards movement in linear regression channel. I'll try and show possible movement in this regression channel in future post as that downward movement has a high likelihood of being short lived if it did happen.
Indicators used and purpose
- Bollinger Bands to measure volatility
Bollinger Bands indicating low volatility ahead.
- Momentum indicator to get idea of general trend
Momentum indicator is moving sideways
- Volume indicator to see how many buyers and sells there is with higher volume data holding more weight then lower volume data.
Volume is low
- 21 weekly MA Comparison to moving average of price.
Sitting below the mean.
- Risk Reward indicator Risk vs Possible profits.
1.61 is not ideal
Conclusion
After reviewing this chart I believe that watching to see if ETH can break above 21 MA will be indicator for movement once volatility increases again. If it stays below 21 MA for next couple weeks look for some downwards movement in linear regression channel. I'll try and show possible movement in this regression channel in future post as that downward movement has a high likelihood of being short lived if it did happen.
