Thread by @ColdBloodShill

The most massive and grandiose of yikes for $ETH.

My play is Puts.

I think there's a chance they take this to $3600, especially if we have volatility tomorrow.

If we sweep and maintain these divs, it's going to be a nasty correction (not saying end, just correction)

Don't want to be swept/active so Puts the play.

This set up is absolutely a condition that I would urge caution in.

HTF supply just above us.
Clear signs of reducing momentum on each high created.
Divergences across 3 timeframes both HTF highs and LTF (4h) consolidation.

Corrections in these trends are often hard and fast.

I'm actually really surprised $ETH didn't break clear of this divergence. I said on stream on Sunday that it was too early to short, but today you're going to get confirmation of the div.

Less power than I expected through this last leg. Shame, but it is what it is.

Fade if you want to fade.

There's a difference between understanding when a situation is playable vs when it is not.

Some profit taken, $ banked and we're off to relax.

Stream tomorrow.

Summary for educational purposes on the back and forth today.

RSI produced 3 divergences on 3 timeframes.

After -9% we'd consider the 4h/12h played out. Now we see if the Daily kicks in as well to drive again.

Counter-trend you take profit and reassess for the HTF play.

You had very clear signals from RSI that this impulse was coming to the downside.

With the Daily div you either get a continuation from here or we continue to push back to the upside with the potential for another divergence leg or clear break and invalidation.

Regardless of the turn the discussion took, I hope that this summary of RSI and divergences shows how they can be very simple to spot, give solid signals, and if you understand how they playout/manage expectations can be great earners.

Remaining $ETH Puts printing into the close.

LTF divergences starting to appear, expiry imminent. Been a great impulse play from the divs.

Now we see if the June's go to work.