ADL plus Tom DeMark and MAs
Here's a retrospective on how I could have traded the recent ETH price action.
The ADL profit factor for longs on the 1hr chart is around 6.9, which is very high. That gave a good reason to take a long position on 21 June around $269.
Next, to time the exit, look at EMAs, SMAs, and the Tom Demark indicator. Even though ADL didn't give a close long signal at the top (26 June), given the parabolic price rise, with 9/21 EMAs stretched out far above the 50/128/200 SMAs, common sense says that one should take some profits.
Remember, trying to time stop loss hunts is like playing chicken.
Finally, the ADL close long signal around $290 would have given profits as well.
The ADL profit factor for longs on the 1hr chart is around 6.9, which is very high. That gave a good reason to take a long position on 21 June around $269.
Next, to time the exit, look at EMAs, SMAs, and the Tom Demark indicator. Even though ADL didn't give a close long signal at the top (26 June), given the parabolic price rise, with 9/21 EMAs stretched out far above the 50/128/200 SMAs, common sense says that one should take some profits.
Remember, trying to time stop loss hunts is like playing chicken.
Finally, the ADL close long signal around $290 would have given profits as well.
כתב ויתור
המידע והפרסומים אינם אמורים להיות, ואינם מהווים, עצות פיננסיות, השקעות, מסחר או סוגים אחרים של עצות או המלצות שסופקו או מאושרים על ידי TradingView. קרא עוד בתנאים וההגבלות.