$ETH Evening Thoughts:
Looking at the strong upward thrust of the second coin this morning, the white arrow indicates it seemed like it was going to break through the screen, but the result? It couldn't hold for even 2 minutes before coming down. This is why I don't like trading the second coin; it's just erratic. Moreover, the subsequent two upward thrusts were lower than the previous one, and the last upward thrust even formed an isolated high point, indicating resistance above. Where is the resistance? It's at the upper boundary of the triangle! Students, take a close look at these three upward thrusts; did any of them have a solid closing price above the triangle's upper boundary? It seems none did! The upper boundary of the triangle is resistance, and it hasn't been broken, so how can you think the bulls are strong? Just because you see a big bullish candle doesn't mean it will break through or rise; you should consider the solid closing price, okay? The second coin must break through 2009 to rise; if it breaks 2009, it will also break the triangle to look towards around 2046; otherwise, it won't see any rise. Currently, the second coin not only shows no intention to break the triangle but even has a trend to break down through it. If the triangle is broken, in my opinion, the previous low of 1966 won't hold and will break; if it breaks 1966, then look down to 1928!
Let's see if this time it can bounce back from 1966 to break through 2009; if it directly breaks through 1966 without stopping, you shouldn't expect it to test the previous low for a rebound anymore.
For the second coin, break through 2011 with volume on the right side to chase long and catch the rebound; break through 1992 with volume on the right side to chase short. Pay attention to the changes in volume and set your stop loss properly.
For the second coin, break through 2011 and look up to 2046-2092.
If it breaks 1990 on the 4-hour level, look down to 1936-1908.
The head and shoulders pattern on the 4-hour level for the second coin has already completed. I wonder if any of you have shorted at the right shoulder position of the head and shoulders. I didn't trade the second coin, but I traded the first coin; just because you see a bullish engulfing pattern doesn't mean you should go long. You need to see where this bullish engulfing pattern occurs. The bullish engulfing and piercing pattern indicated by the white arrow occurs at the lower boundary of the flag; you can go long, but if it occurs at a position that is neither up nor down, you cannot go long. Either the bullish engulfing pattern breaks resistance, and you can go long, or it appears at a support level. If you go long and encounter situations like this later, don't go long anymore. Meeting adjourned.
