Exchange Rates UK TV: Using Fibonacci extensions, we can identify several key price levels above the all-time high that could be used for profit taking..

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Good afternoon. Good morning. Good evening, everyone, welcome to Exchange Rates UK TV.

Going over cryptos, today we’re going to talk about Ethereum, and I’m starting off on the weekly chart because I want to kind of go over some future price projections and another thing on how to look at this chart.

So real quick, this is a logarithmic chart, and a logarithmic chart is a chart where you view it as a measure of proportion. An example of why we do that would be, well let’s just take a look at the Dow.

This is the CFD of the Dow, and if we scroll all the way out, I’m gonna get rid of the Ichimoku there, if we scroll all the way out, and then go to regular, you can see that it changes a little bit.

best exchange rates todayAnother one is to look at the NASDAQ. So this is this is the NASDAQ linear chart where we’re seeing an equal division of numbers on the way up. But if we look at it from a logarithmic view, it’s a little bit more dramatic, we actually actually kind of get an idea of how big of a move that was in 2007, or 2008 into 2009. Whereas the regular just kind of looks pretty muted, looks like all the price action on the way up to 2015 was pretty dull as well.

So the stock market and Bitcoin, things where they certainly expand and the numbers go up well beyond what they were when they originally started, you want to look at things as a measure of proportion.

So looking at Ethereum logarithmically, this is the chart that we get to. Now, Ethereum is up against a pretty interesting level. So we’re we’re really, linearly looks like back here, it looked like prices were way way far away from their prior all time highs.

But when you look at it from a logarithmic view, it’s not very far. I mean, it’s not very far at all, this is on the weekly chart, it’s not going to take much to push Ethereum higher.

And this candlestick, by the way, is showing some pretty heavy bullish activity here during the week. This convert to this to the short side very easily, this is a candlestick pattern that is inherently bearish given where it’s at. But that doesn’t happen doesn’t mean that these are cryptocurrency, so candlestick patterns sometimes just don’t matter.

There is a specific harmonic pattern in here as well, we’ll go over that in a future video, but I just want to talk about projecting future prices forward using Fibonacci extension.

So if you want to know, okay, well, where are some price levels that I should look out for to take profit. With a Fibonacci extension, you depending on the tool and the software you’re using. For trading view, I’m going to start with the swing low, I’m going to go to the swing high. Let’s start with low, draw to the high and then want to draw to the next low. I’m not going to draw to this low though, because this wick, if you check out the volume profile, it’s not very indicative of any honest traded price action. So that’s why I go to the wick of the next week over, it’s a little bit more authentic.

And what I see right away is that the 1618 is where we’re trading up against. We’re trading above it right now, that doesn’t mean anything. But this is a key level where you would expect to see some resistance.

If it doesn’t hold as resistance, the odds are we’ll start to see this just kind of boom higher and certainly expand further.

Probably need to add some ratios on here so that we can identify what some of those future price levels are after.

So we have the 200% extension, up here 2,055.26. That level is one that I would look out for if Ethereum does not have a retracement from where it’s at and continues to go higher here, that is where I would look at taking some profit.

Above that, this is where we have to kind of squeeze the chart down a little bit, above that, I would want to look at the 3098 level.

Seems a little crazy to think that Ethereum could get up there but again, it’s not that far. You want to take a measure of the move here, the price range Ethereum has moved, let’s go from this prior swing low September 20 week September 21 2020, it moved up 331%. From there, if we were to go from this prior swing low, same percentage, roughly the same percentage move. Yeah, we’re getting close to the 2.27 extension, so 3098.

So definitely take a look and pay attention to these levels as they as Ethereum moves. a retracement. Very likely you one would expect it however, you know, this is a new bullish expansion phase for cryptocurrencies.

I wouldn’t expect a dramatic and drawn out retracement. In fact, this move that occurred the downside move that had occurred earlier in the week on Monday., if we want to take the high here to the low that was a 27% retracement.

So that’s that’s well within the range of a normal retracement that Ethereum would experience and you could say that it had already tested that it’s confirmed it and it may just keep going higher.

So look higher at 2055 and again at 3098 as the next major price levels to look for taking profit.

Thanks for watching this video. And from all of us here at Exchange Rates UK TV please like and subscribe. Have a good one.


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(Excerpt) Read more Here | 2021-01-16 03:06:00
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