Downloading...
Download

Positivereversal

Positive reversal with target for ETHBTC?Based on the teachings of Andrew Cardwell and Constance Brown regarding positive reversal scenarios, we possibly see a nice example in ETH/BTC here. I have marked the key points with letters. The low marked 'x' is a higher low than the low marked 'w'. The RSI shows a lower low, meaning that PA is considered oversold quicker than before. This is called a positive reversal signal, provided that PA stays above the ascending line and actually does bottom here. The interesting thing about positive such reversal scenarios is not that PA may go up from here, the interesting thing is that we can actually calculate the target price using a simple formula: (y + (x - w)). This gives us a target close to 0.085. How reliable is this? If the bottom takes place here, the reliability would be above 50%. What makes it more interesting, and again I refer to Constance Brown's book "Technical Analysis for the Trading Pofessional" is that the bottom happens at a very important level: RSI at 40. This is often a level for reversals within a bull market. Stoplosses can be put a couple of percentage points below the ascending line. Risk reward then becomes incredibly favourable.
Long
by Birdseye88