Ethereum: simple trading tips for novice investors on August 4. Analysis of yesterday trades in crypto market
August 4, 2023 7:26 am
Tips for trading ETH
A test of 1,832 occurred at a time when the MACD indicator was in the negative zone, which was a confirmation of the correct entry point into short positions. It triggered a decline to 1,827 but there was no significant downward movement. In the afternoon, a test of 1,840 took place at a time when the MACD indicator was in the positive zone, which provided a buy signal. It resulted in a rise to 1,853. At that level, traders closed short positions on a rebound. Shortly after, Ether returned to 1,840. Today, speculators need to closely monitor the data on the US labor market and trade according to fresh indicators. No sharp movements are likely to occur in the first half of the day. It may lead to a surge in volatility. A strong NonFarm Payrolls report will adversely affect demand for risk assets, weakening Ether. If the report is positive, the Fed may stick to aggressive tightening. If the figures indicate a slowdown in the growth of new jobs, Ether could start an upward movement. If so, it may resume a bullish trend. I am going to trade today according to scenario No. 1.
Buy signal
Scenario No.1: you can buy ETH today when the price reaches 1,837 (the green line on the chart) with the prospect of a rise to 1,853 (thicker green line on the chart). At 1,853, I recommend closing long positions and opening short ones in the opposite direction. Ether is likely to advance if the NonFarm Payrolls report is negative Important! Before buying, make sure that the MACD indicator is above the zero mark and it has just started to climb from it.
Scenario No.2: you can also go long today in the case of two consecutive tests of 1,827 at a time when the MACD indicator will be in the oversold area. This will limit the downward potential of the trading instrument and could lead to a market reversal. It may advance to the levels of 1,837 and 1,853.
Sell signal
Scenario No. 1: it is possible to sell Ether today only if the price touches 1,827 (the red line on the chart), which may lead to a rapid decline. The key level is located at 1,811 where I recommend exiting sales as well as opening long positions in the opposite direction. The pressure on Ether will increase if NFP data is positive. Important! Before selling, make sure that the MACD indicator is below the zero mark and it has just started to dip from it.
Scenario No. 2: you can also sell ETH today in the case of two consecutive tests of 1,837 at a time when the MACD indicator will be in the overbought area. This will limit the upward potential of the trading instrument and lead to a market reversal. The instrument is projected to slide to the levels of 1,827 and 1,811.What’s on chart:
The thin green line is the entry point where you can buy a trading instrument;
The thick green line is the estimated price where you can place a Take Profit order or lock in profits manually as ETH is unlikely to rise above this level;
The thin red line is the entry point where you can sell the trading instrument ;
The thick red line is the estimated price where you can place a Take Profit order or lock in profits manually as the price is unlikely to decline below this level;
The MACD indicator. When entering the market, it is important to pay attention to overbought and oversold zones.
Important. Novice traders need to make very careful decisions when entering the market. Before the release of important fundamental reports, it is better to stay out of the market to avoid losses due to sharp fluctuations in the exchange rate. If you decide to trade during the news release, always place Stop Loss orders to minimize losses. Without placing Stop Loss orders, you can lose the entire deposit very quickly, especially if you do not use money management but trade in large volumes. Remember that for successful trading it is necessary to have a clear trading plan, following the example of the one I presented above. Relying on spontaneous trading decisions based on the current market situation is a losing strategy of an intraday trader.
The material has been provided by InstaForex Company – www.instaforex.com
Tips for trading ETH
A test of 1,832 occurred at a time when the MACD indicator was in the negative zone, which was a confirmation of the correct entry point into short positions. It triggered a decline to 1,827 but there was no significant downward movement. In the afternoon, a test of 1,840 took place at a time when the MACD indicator was in the positive zone, which provided a buy signal. It resulted in a rise to 1,853. At that level, traders closed short positions on a rebound. Shortly after, Ether returned to 1,840.
Today, speculators need to closely monitor the data on the US labor market and trade according to fresh indicators. No sharp movements are likely to occur in the first half of the day. It may lead to a surge in volatility. A strong NonFarm Payrolls report will adversely affect demand for risk assets, weakening Ether. If the report is positive, the Fed may stick to aggressive tightening. If the figures indicate a slowdown in the growth of new jobs, Ether could start an upward movement. If so, it may resume a bullish trend. I am going to trade today according to scenario No. 1.
Buy signal
Scenario No.1: you can buy ETH today when the price reaches 1,837 (the green line on the chart) with the prospect of a rise to 1,853 (thicker green line on the chart). At 1,853, I recommend closing long positions and opening short ones in the opposite direction. Ether is likely to advance if the NonFarm Payrolls report is negative Important! Before buying, make sure that the MACD indicator is above the zero mark and it has just started to climb from it.
Scenario No.2: you can also go long today in the case of two consecutive tests of 1,827 at a time when the MACD indicator will be in the oversold area. This will limit the downward potential of the trading instrument and could lead to a market reversal. It may advance to the levels of 1,837 and 1,853.
Sell signal
Scenario No. 1: it is possible to sell Ether today only if the price touches 1,827 (the red line on the chart), which may lead to a rapid decline. The key level is located at 1,811 where I recommend exiting sales as well as opening long positions in the opposite direction. The pressure on Ether will increase if NFP data is positive. Important! Before selling, make sure that the MACD indicator is below the zero mark and it has just started to dip from it.
Scenario No. 2: you can also sell ETH today in the case of two consecutive tests of 1,837 at a time when the MACD indicator will be in the overbought area. This will limit the upward potential of the trading instrument and lead to a market reversal. The instrument is projected to slide to the levels of 1,827 and 1,811.
What’s on chart:
The thin green line is the entry point where you can buy a trading instrument;
The thick green line is the estimated price where you can place a Take Profit order or lock in profits manually as ETH is unlikely to rise above this level;
The thin red line is the entry point where you can sell the trading instrument ;
The thick red line is the estimated price where you can place a Take Profit order or lock in profits manually as the price is unlikely to decline below this level;
The MACD indicator. When entering the market, it is important to pay attention to overbought and oversold zones.
Important. Novice traders need to make very careful decisions when entering the market. Before the release of important fundamental reports, it is better to stay out of the market to avoid losses due to sharp fluctuations in the exchange rate. If you decide to trade during the news release, always place Stop Loss orders to minimize losses. Without placing Stop Loss orders, you can lose the entire deposit very quickly, especially if you do not use money management but trade in large volumes. Remember that for successful trading it is necessary to have a clear trading plan, following the example of the one I presented above. Relying on spontaneous trading decisions based on the current market situation is a losing strategy of an intraday trader.
The material has been provided by InstaForex Company – www.instaforex.com
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