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DLavrov
Mar 23, 2019 12:36 PM

Litecoin Vs Bitcoin - Bearish Divergence  

Litecoin / BitcoinPoloniex

Description

The price forms a bearish divergence at the resistance zone between 0.015000 and 0.016000 levels. It gives a trend reversal signal. The market made a good upward movement and it should be corrected. RSI is at the overbought zone telling us that the market has more chances to move lower than to continue the upward run. MACD lines are going to support a downward movement. DMI is bullish with the falling ADX line. All these signals tell us that the correction to MAs and an uptrend line - it will be a logical move in the market conditions which we have now.

For confirmation of the falling, the price will have to break the local uptrend line. The breakout signal can be used for opening short positions. If the price moves above 0.016000 level, it will confirm that bulls still have the power to push the market higher. But this breakout can't be used for trading as the market will be too far from proper entry levels. These entry levels are at SMA50, SMA100 and the uptrend line and long positions should be opened only based on confirmed reversal signals.
Comments
Cryptonite_trader
Nice! This is what im currently seeing
j412i
Could it be a cup and handle formation? A slight pull back could lead to an impulse up, no?
DLavrov
@j412i, I don't think so, the market movements are far from cup&handle chart pattern.
MisterShaker
I sold all my positions of LTC and waiting for pullback till around 0.012 to rebuy.
DLavrov
@MisterShaker, as a variant
zerocashcool
@DLavrov this is so classic. I love your Ideas. This reminds me of when I got started trading. I would run across my house to my computer when I heard TradingView's tic-tic-tic sound and immediately reproduce your charts. It's amazing how far someone can come in their education by analyzing your methods. Surgical precision. Simplicity. Classic DLavrov.
DLavrov
@zerocashcool, thank you very much for your comment! I will do my best for keeping the same style)
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