This is the Third Article in a comparative analysis of an ETH-USD Long Term Trend. The intent of this article is to prove or disprove our prediction which was made in the previous two posts. You can read those articles by clicking a Previous Post button below.
As we can see from the prior two articles the period of Low Volatility seems to be coming to its end and beginning to stabilize. As it remains almost unchanged we can safely assume that from this point forward it will ether remain relatively the same or will start to gradually increase. This increase will indicate that the movement of the ETH-USD will become more pronounced and much more volatile.
Also, we see that the 2-day Heikin Ashi Candles show a very distinct Short-Term Up-Trend in addition to that we can see a First Up Step (indicated by a down-facing arrow) being completed. Also, the continuation of an uptrend is indicated by the Green Hiekin-Ashi bars.
Based on all of the above we can reasonably assume that an uptrend is in the swing mode and we can expect it to continue until we see a substantial Downward movement which will be indicated by a multiple of 80 periods ATR in the downward direction.
Now it is time for us to make some adjustments to out Take Profit / Stop Loss orders:
Long Entry Point of $139.54
Initial Stop Loss = $140.01 + 2% = $142.81
Take Profit / Stop Loss = Latest Hi($208.00) – (80ATR($19.00) x 1.5) = $180.00 or
$208.00 – ($19.00 x 1.5) = $180.00 All numbers are rounded to the nearest Dollar.
Our anticipated profit at the time of publishing this article = $180.00 – $139.54 = $40.46 per ETH-USD
It is worth noting however that the trade is not over yet and Take-Profit / Stop Loss should be adjusted to the future price movements however it should not be lower than $180.00 which is indicated by a Take Profit / Stop Loss red line.