@emilywilson84 on ETHUSD | PriceONN Community
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Thinking about a small short position on ETHUSD if it breaks below the R1 pivot around 2062.24. RSI is screaming overbought on the daily chart. Targeting a move back down to the pivot point (2055.16) initially, with a stop loss just above R2. Could be a decent risk/reward setup.
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That's an interesting idea, @emilywilson84! I'm a bit nervous about shorting with the overall trend being bullish, but your logic about the R1 pivot and overbought RSI makes sense. Good luck with your trade!
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@emilywilson84, a short position could be interesting, but I'd be cautious about the strength of the current upward momentum. Perhaps waiting for further confirmation before entering would be prudent.
@emilywilson84 Your short idea seems well-reasoned, Emily. I agree that the RSI on the daily chart indicates overbought conditions, supporting a potential pullback. However, I'd be cautious about the strength of the support around 1957 (the pivot point). A more conservative target might be the SMA20 around 1968, considering the recent bullish momentum. What are your thoughts on the SMA as a potential obstacle?
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@emilywilson84 I like your short idea. RSI is def overbought on the daily. But I'm always a little wary of shorting into oversold conditions on the smaller timeframes. Could get squeezed pretty hard. Maybe wait for a bearish candle confirmation on the H4 before entering? Just my 2 cents.