analytics60507608e0d43.jpg

1. Analysis of ETHTUSD volume from Binance

2. Analysis of the long-term trend

3. Analysis of the medium-term trend

4. Analysis of the short-term trend

5. Japanese candlestick analysis

6. Conclusions

7. Statistics

1. Analysis of ETHTUSD volume from Binance

The analysis is based on the horizontal volumes data on daily charts from the Binance exchange. The analysis is carried out based on the footprint-profile theory. According to the theory, the direction of the horizontal level with the highest trade volume within a day can indicate the likely direction of the trend. The highest trade volume is the level with the largest number of transactions carried out. That is, it is the level of major market players. Accordingly, if the highest trade volume level goes up, it indicates an upward trend. Otherwise, if the highest trade volume level goes down, it indicates a downward trend. Chaotic movements signal that the market is trading flat.

14.03.21 – the level of the highest horizontal volume (POC – PointOfControl) – 1850

15.03.21 – the level of the highest horizontal volume (POCPointOfControl) – 1748

The POC has moved down. The price level is above the POC. The market seems to have entered a correction. Therefore, one can open both long and short positions.

2. Analysis of the long-term trend

A trend is your friend. Many traders know this saying but do not know how to use it. The answer is simple: to trade only in the direction of a trend. Thus, your trades will have more profit potential with less risk. According to the classic Dow theory, there are three main trends:

long-term

medium-term

short-term

These are the trends you should analyze before entering the market. Now, let’s take a look at them.

The long-term trend is the daily trend. In this case, trades are conducted in the daily time frame and are held for several days. The analysis of the daily trend is made with the help of the 48-period exponential moving average (EMA(48)). If the daily candlestick closes above EMA(48), it will indicate the upward trend. Therefore, you should enter long positions. If the daily candlestick closes below EMA(48), then it is the downward trend and you should enter short positions.

analytics605076294a74e.jpg

The chart indicates an upward trend. The price is above EMA(48). That is why you should consider entering long positions.

3. Analysis of medium-term trend

The medium-term trend is the trend on the 4-hour chart (H4). In this case, we will also turn to EMA(48). If the candlestick closes above EMA(48) on the 4-hour chart, it will indicate the upward trend. Thus, you should enter long positions. Otherwise, if the candlestick closes below EMA(48) on the H4 chart, it will indicate the downward trend. Consequently, you should enter short positions.

analytics6050763ede8d4.jpg

The price is in line with EMA(48). It is a mid-term sideways trend. Therefore, you can open both long and short positions.

4. Analysis of short-term trend

A short-term trend is the trend in the H1 time frame. Moreover, it can show an entry point into the market well. We will turn to EMA(48) again. If the candlestick closes above EMA(48) on the H1 chart, it will indicate the upward trend. Thus, you should enter long positions. Alternatively, if the candlestick closes below EMA(48), it will indicate the downward trend. Consequently, you should enter short positions.

analytics60507657966d8.jpg

The price is in line with EMA(48). It is a short-term sideways trend. Thus, you can both buy and sell the pair.

The long-term, the medium-term, and the short-term trends do not coincide.

5. Japanese candlestick analysis

A classic Japanese candlestick analysis is applied to the daily timeframe. In this particular analysis, we will also look at the daily candlestick.

analytics6050766fe3c34.jpg

We have a black downward daily candlestick. Its low is below the low of the previous candlestick. It is a hammer candlestick pattern, heading upward. The low has already been broken. The downward movement is highly likely.

6. Conclusion.

  1. Volume analysis BUY/SELL.
  2. Long-term trend BUY.
  3. Medium-term trend BUY/SELL.
  4. Short-term trend BUY/SELL.
  5. Japanese candlestick analysis SELL.

Conclusion: You can both buy and sell the instrument on March 16, 2021.

7. Statistics

To analyze how effective this approach is, the data on completed transactions is tracked. The forecast is made for four instruments: Bitcoin, Ethereum, Litecoin, and BCHUSD. Trading account monitoring:

analytics605076858b543.jpg

Gains for two months of 2021: +12.21%.

Statement:

analytics6050769f5b871.jpg

Current deals:

09.03.21 Ethereum BUY: 1831 SL: 1619; Risk per deal: 1% of a $10,000 deposit with 0.48 lot.

A Stop Loss for new orders is placed beyond the daily extreme points. We do not set a Take Profit because we will continue to move the Stop Loss above the extreme points of the upcoming sessions.

Since trading is carried out on daily charts, this recommendation is relevant throughout the day.

Trade with the trend and you will generate profits!

The material has been provided by InstaForex Company – www.instaforex.com

Leave your vote

🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.

As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.