Ethereum ETH hi prob retest of $7 lows soon. Here's why. $ETH/USD

Friday August 5, 2016

Patterns on the charts below do most of the talking, but I'll try to interpret where I think it could be helpful (tl:dr - just scan the charts below, read more where you want to)

VOLUME - Mostly bearish signs

Just tweeted this for context:

From 7/30 tl:dr Hi vol selling in $ETH indicated incr prob line in sand @ $10-11 gets tested.Tested Aug 1 $ETC $BTC -- this came from this post:

Is ETC a scam? Could ETH Go to ZERO? Patterns KEY targets may have answers

Volume is important, that whole supply and demand thing, you know. On the other hand banking of volume for your trading decisions is dangerous because it can be easily manipulated by crimin... err whales, market makers, hedge funds etc. In any case I always want to know the story volume is telling.

INDICATORS - Offering clues ETH has not bottomed yet?

PRICE PATTERNS - The chart you're sick of seeing but can't look away

Reviewing this chart should be as routine as drinking your morning coffee (or tea in my case). As I tweeted this morning,

That smaller head and shoulders played out almost to the penny. How is it now safe to assume that the probabilities favor the larger one being invalidated? I see no evidence to support that and until I do, this chart and the bible contain "the word".

PRICE (ACTUAL LOW)

You'll think this one's silly. Your call, but go back and check out my prior twitter and blog posts posts calling targets and stops.....

ETC UBER BULL (SO FAR)

As I write this ETH and ETC have been very closely INVERSELY correlated (one goes up, the other goes down). I believe it would be a huge mistake to assume that inverse correlation is going to last forever (that's what they want you to think). For now, it is what it is, so we work with it.

Don't need to say much about what sort of trend ETC is on (I could say and show more--maybe later)....and if these two are inversely correlated, well....

FINAL THOUGHT

Cryptopatterns provide probabilities, NEVER certainties. Anything can happen.

CURRENT POSITIONS

20% LONG core position ETC

25% LONG core position BTC

For prior trades and posts https://twitter.com/Cryptopatterns
For REAL TIME trades and updates https://cryptopatterns.wordpress.com/

NOTE: NOTHING IN MY POSTS IS INTENDED TO BE TRADING ADVICE. Please do not base your trades on any information presented in the materials on this blog as it is for information and entertainment purposes only. You are 100% responsible for your own trading decisions.