LTCUSD finished its correction and is currently consolidating, ready for continuation of the major uptrend. Let's look at underlying near-term trends:
1) Money Flow seems to be breaking its down trend while forming a new up trend, which shows an increased interest on the buying side.
2) Futures premium (calculated based on OKCoin index and OKCoin quarterly futures), which I use as a sentiment indicator, has finished its decline and looks like it is ready to move up, not without some decrease at first though. That would be perfect, because I do not believe in strong up moves unless there is some strong bearish sentiment in the masses :D
3) Minor trend EMAs are still heading down, while the major 144-day EMA has been providing some nice support.
All in all, I believe that the major up trend is strong here, but it cannot continue without a final retest of its EMA. Things I am looking for before going long:
1) Confirmed up trend in Money Flow
2) Futures premium going high
3) For an ultimate confirmation, crossing of the 55-day EMA
Looking for a reversal is advisable on 4h chart, there is some interesting stuff happening there :)
P. S.: The Elliot Wave count in the chart might be incorrect, I am still learning this powerful stuff :D
1) Money Flow seems to be breaking its down trend while forming a new up trend, which shows an increased interest on the buying side.
2) Futures premium (calculated based on OKCoin index and OKCoin quarterly futures), which I use as a sentiment indicator, has finished its decline and looks like it is ready to move up, not without some decrease at first though. That would be perfect, because I do not believe in strong up moves unless there is some strong bearish sentiment in the masses :D
3) Minor trend EMAs are still heading down, while the major 144-day EMA has been providing some nice support.
All in all, I believe that the major up trend is strong here, but it cannot continue without a final retest of its EMA. Things I am looking for before going long:
1) Confirmed up trend in Money Flow
2) Futures premium going high
3) For an ultimate confirmation, crossing of the 55-day EMA
Looking for a reversal is advisable on 4h chart, there is some interesting stuff happening there :)
P. S.: The Elliot Wave count in the chart might be incorrect, I am still learning this powerful stuff :D
Comment:
The last dive to the trendline has started, 3.5$ looks like perfect buying price
Trade closed manually:
Chart from the quarterly futures:
LTC seems to be entering new downtrend together with BTC, I guess we just have another few months before we can talk about any uptrends again.