Cryptocurrency Analysis

[IFX_Selena]

Forecast for Ethereum on March 9, 2021 - BUY. The result for February is +10.93%

1. Volume analysis for the ETHTUSD instrument from the Binance exchange.

The analysis uses data on horizontal volumes from the Binance exchange on daily charts. The analysis is based on the Footprint-Profile theory, in which the movement of the level of the maximum horizontal volume per day can indicate the likely direction of the trend. The maximum volume level is the level at which the maximum number of transactions was made, that is, the level of a large player. Accordingly, the upward movement of the maximum volume levels indicates an upward trend. A downward movement of the maximum volume level indicates a downward trend. Chaotic movement of the maximum volume levels indicates a flat in the market.

05.03.21 – Maximum Horizontal Volume Level (POC - Point Of Control) - 1678
09.03.21 – Maximum Horizontal Volume Level (POC - Point Of Control) - 1738

The point of control has moved up. The price is above the POC level. It is likely that an upward movement has begun, you can buy.


2. Analysis of the long-term trend.

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

-long-term;
-medium-term;
-short-term.

These are the trends that need to be analyzed before opening any transaction. This is what we will do in this analysis.

The long-term trend in this analysis is the daily trend. Trades will be made on a daily timeframe and held for several days. The daily trend is analyzed using the 48-period exponential moving average (EMA (48)). If the daily candle closes above the EMA (48), it means that we are facing an upward trend and we should buy. If the daily candle closes below the EMA(48), it means that the trend is downward and you should sell.



The chart shows an upward trend. The price is higher than the EMA (48), so in this situation it is worth considering purchases.


3. Analysis of the medium-term trend.

In this analysis, the medium-term trend will be the trend on the 4-hour chart (H4). The E48-period exponential moving average (EMA (48)), will also be used for the analysis. If the H4 candle closes above the EMA (48), it means that the trend is upward and you should buy. If the H4 candle closed below the EMA (48), it means that the trend is downward and you should sell.



The price is higher than the EMA (48). The medium-term trend is upward, you can buy.


4. Analysis of the short-term trend.

The short-term trend, which can well show the entry point to the market, will be considered a trend on the H1 timeframe. The 48-period exponential moving average (EMA (48)) will help us. If the H1 candle closes above the EMA (48), it means that the trend is upward and you should buy. If the H1 candle closes below the EMA (48), it means that the trend is downward and you should sell.



The price is higher than the EMA (48). The short-term trend is upward, you can buy. Long-term, medium-term, and short-term trends are the same.


5. Japanese candlestick analysis.

The classic Japanese candlestick analysis is used for the daily timeframe. In this analysis, we will also analyze the daily candle.



The daily candlestick is closed upward, the candlestick is white. The maximum is higher than the maximum of the previous candle. Candlestick configuration - Trend candlestick, yesterday's candlestick has a large body. An upward movement is likely.


6. Conclusions.

Volume analysis - BUY.
The long-term trend - BUY.
The medium-term trend - BUY.
The short-term trend - BUY.
Japanese candlestick analysis - BUY.

General conclusion: On March 9, 2021 - you can buy.


7. Statistics.

To analyze the effectiveness of this approach, statistics on completed transactions are kept. Forecasts are made and transactions are made on four instruments: Bitcoin, Ethereum, Litecoin, and BCH/USD. Trading account monitoring:



The result for February 2021 is +10.93%.

Statement:

This transaction is open:

09.03.21 Ethereum BUY: 1831 SL: 1619; Risk per trade: 1% of the deposit. With a deposit of $10,000, the lot is 0.48.

For new trades, the Stop Loss is located behind the daily extreme points. We do not set a Take Profit, as we will accompany the transaction by moving the Stop Loss beyond the extreme points in the future sessions.

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

Trade with the trend, and you will gain profit!



Maxim Petrov
Analytical expert
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