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ETHUSD Head & Shoulder Setup?

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As you can see from the image below, there is an obvious head and shoulder setup on ETHUSD. The image shows a 15-minute chart and the measured move based on the head and shoulder setup would be around the 1,600 level. There is, without a doubt, a lot of traders looking for this pattern to play out. In addition to this, BTCUSD had a move down to the lower levels of its current range, so traders are likely to expect further downside.

While it’s very possible we will get further downside on ETHUSD, this may be a solid place to look for a long trade. If everyone is looking for further downside, upside may be in the cards. You want to be on the flip side of the crowd. In addition to this, the 1,950 level is the value area low of the current range, and this lines up with a strong fib level. A long trade here has a very clear invalidation level, just around the 1,800 level.

Its always scary to go long when a cross is moving down and vice versa. But this is also where you may get a solid risk: reward ratio.



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