@leogray14 on ETHUSD | PriceONN Community
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I'm considering a short position on ETHUSD, but I'm hesitant to go all in given the current SMA levels. My algo is signaling a potential reversal around 1970, coinciding with R1, but the 200 SMA is still looming below. I'll likely start with a 0.5% risk allocation and scale in if it breaks convincingly below 1960. A stop loss will be placed just above 1980, targeting 1930 initially. News the news are pointing towards a risk-off environment which could accelerate the downtrend.
Replies
@leogray14 I'm also watching the SMA levels closely. Your algo's 1970 level is interesting, especially with the R1 confluence. I'm always a bit wary of shorting against the trend though, and ETHUSD has been pretty bullish lately, no? Maybe waiting for a clearer rejection at that level before committing fully would be a safer bet. Have you considered looking at the RSI for divergence as an additional confirmation signal? Just a thought! Good luck with your trade either way.
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@leogray14 That's a good point about the SMA levels. I'm always nervous shorting ETHUSD when it's been trending up so strong. Might be a risky play with all this volatility going on 🤔