Welcome to the first crypto trade on ETHUSDT. We have a classic Volume Spread Analysis (VSA) trade that we always speak about in our webinars. We always find these trades in any market whether it’s forex, cryptos, futures or stocks. The behaviour of professional money is the same across all markets.
The trade is on the ETHUSDT perpetual futures contract, on the 15-minute chart. The first thing we had was a down move then at point A, we had widespread down bars with ultra-high volume. This is the first sign that professional money is entering the market. At this point, we got the Volume Spread Analysis (VSA) principle “Potential Professional Buying”. The next bar was an up bar which confirmed this signal.
Smart Money Test for Further Selling On ETHUSDT
We put a line at the top of the ultra-high volume bar, which becomes our trigger point. This is where we wait for the price to cross after the professional money is accumulating at lower prices. While the smart money is accumulating, they perform tests at lower prices to see if there is further selling. There was a bar which broke the support level, pushed prices down and closed towards the highs of the range. This behaviour is strength and prices started to track higher after the manoeuvre.
At point B, we had a widespread up-bar on ultra-high volume. This type of bar in Volume Spread Analysis (VSA) is weakness, but if we were going to have continued strength, then this area will need to be tested. We got a “No Supply” bar a couple of bars later which gave us further confidence that there is still strength.
After Selling Dries Up Price Moves Higher
Price now started to move higher and more importantly, we saw a change in trend to the upside and immediately ETHUSDT rallied. The rally crossed our trigger point to the upside and now all we need to do is wait for a confirmed sign of strength to take a trade. At the end of the first up-move, we had an up-bar with ultra-high volume, which knocked prices sideways. We finally got our chance to take our trade at point C, where we had a sign of strength “Test”. What we loved about this setup was the ultra-low volume on the test bar which meant that the only way was up.
Looking at smart centre pro, we had trend alignment to the upside on the 5 min, 15 min and 30 min, which is all we required to take this trade.
As you can see from the chart above, ETHUSDT certainly did shoot up. We received a telegram from the smart money about when to get out of our trade. Don’t forget the following rule:
When weakness appears, it appears on widespread up-bars on ultra-high volume
High Probability Investing & TradeGuider
The telegram was a widespread up-bar with ultra-high volume. This is weakness as professional money is selling their holdings. They are selling to the uninformed investors who are jumping in right now wishing for it to continue higher, but the price action does the complete opposite and the retail investor are left scratching their heads wondering what went wrong.
The one thing that I love about the platform that I trade on is that it shows a ticker of investors taking long or short trades on the instrument that we are viewing. When ETHUSDT was nearing its up-move, the ticker was showing that traders were starting to enter the trade. Be a clever predator trader and really study the volume spread analysis methodology that was developed by TradeGuider. The proof is in the trades that we take and as you can see, we have more winners than losing trades. Take a look at our forex trades.
We moved our stop loss to the high of the ultra-high volume bar and that is where we exited the trade.
Trade Outcome
Trade Size: 10 ETH
Price Entry: $1647.29
Exit Price: $1670.00
Profit: $227.10