The breakout play - ETHUSD ready to breakout and bull trend?
For the crypto ballers - ETHUSD (Ethereum) is front and centre - we see price backtesting the Nov highs, but having attempted numerous times to break the ceiling the bulls currently lack the impetus - with this consolidation we see a reduction in realised volatility (narrow Bollinger Bands), which suggests when it does break and close above resistance the prospect of an impulsive rally that leads to bull-trending conditions naturally increases.
If and when it breaks then the move could be powerful and potentially sustained, so we trend and momentum traders want to capture as much of that as they can - on breakout moves like this (could be) it can be beneficial to adopt a mechanical stop – a 3 & 8 day EMA crossover, or a daily close below the 5-day EMA work well for ST traders - both should keep you in the trade and remove emotion if the rally builds momentum.
As we know in trading, you don't need to be right every time and breakout often fail - you need to let the trade ride and extract as much out of the reward side of the R: R as you can.
If and when it breaks then the move could be powerful and potentially sustained, so we trend and momentum traders want to capture as much of that as they can - on breakout moves like this (could be) it can be beneficial to adopt a mechanical stop – a 3 & 8 day EMA crossover, or a daily close below the 5-day EMA work well for ST traders - both should keep you in the trade and remove emotion if the rally builds momentum.
As we know in trading, you don't need to be right every time and breakout often fail - you need to let the trade ride and extract as much out of the reward side of the R: R as you can.
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