Rising Parallel Channel
KUNAL KAMBLE
ETHUSD·
Jul 18 2023
The Pair is forming a rising parallel channel. A rising channel breakout on the downside has a good success ratio and the failure rate is less than 15%
A breakout on either side will be an opportunity to enter.
Condition 1
Take the Long position only if the Security closes above the parallel channel on a 4Hr time frame with RSI above 53, if the RSI is above 80 ignore it. Security should trade above the EMA.
Condition 2
Take the Short position only if the Security closes below the parallel channel on a 4Hr time frame with RSI below 40, if the RSI is below 20 ignore it. Security should trade below the EMA.
RSI has formed a symmetric pattern breakout of the pattern would lead to entry in the direction.
Advice: Trade as per breakout.