Masterful Analysis — Read All — Be Amazed! Litecoin! (LTC)
Hi friends! Welcome to this update analysis on Litecoin! Well, the moment I try to appease some of the unsubstantiated bullish sentiment, among some of my viewers, LTC gets stopped cold at my heavy resistance level, and drops back below the 50 EMA (in orange.) If you recall from my last post, I said "Look at the 50 EMA, and particularly, focus on the instances where it was surpassed. You can see that each time LTC traded above it, it was not sustained for a long period of time. It is possible, that we may be experiencing another failed breakout above the 50 EMA , which is why I don't want to get too bullish just yet. Just above, is the heavy overhead resistance level...Let me say this right now — we are in a bear market downtrend. Don't forget that. Until something changes the trend, this is still a bear market correction."
Looking at the chart, we can see that after breaking out from the original symmetrical triangle (dashed triangle) LTC has formed yet another symmetrical triangle (in black.) This formation validates my original bearish position on LTC. I was a bit surprised to see the first symmetrical triangle move to the upside, but it has just formed a larger symmetrical triangle in the process. For those of you who don't know this, symmetrical triangles are typically continuation patterns. Given the fact that we are in a bear market correction, and trapped inside of a huge downtrend channel, the expected continuation would obviously be to the downside.
Before we go any further, and delve into the beautiful fractal nature of this chart, I want to emphasize the fact that I am a strong believer in fractal market theory. In mathematics, fractals can be described as fragmented geometric shapes, that can be broken into smaller parts, which fully or nearly replicate the whole." Yesterday, someone commented on one of my posts that "The problem is 'professional traders', as you call yourself, think market has a pattern all the time, and is a beautiful drawing." He's absolutely right.
Looking at the chart, you can see that when LTC ran up to the all-time high, it formed a head and shoulders pattern. It took a while for that head and shoulders pattern to begin to produce a breakdown on the chart, (contrary to the instant results that many novice traders expect) but a breakdown was produced, none-the less. After measuring the height of the head and shoulders pattern, and subtracting that amount from the neckline, we can see that it gives us a price target around $100. More recently, LTC formed this series of symmetrical triangles. When I measure the newest symmetrical triangle, and subtract that measurement from the proposed breakdown level, we can see that the price projection is nearly identical to that of the head and shoulders pattern. THAT, is the fractal nature of the markets at work. It is fragmented geometric shapes, that fully or nearly replicate the whole. That said, I think it is inevitable that we reach the head and shoulders target, that has been on my chart for weeks now. So many people criticized it, when I first put it on the chart. I'm sure they'll be silent when we actually get there.
With that said, I am still a TRADER! I analyze the market, in a very efficient and accurate way. However, if the market moves against my analyses, I am generally quick to reconsider my positions. I'm nimble, and not at all emotionally attached to my views on the market. Therefore, if I were to see an upside breakout, above the blue parallel channel, I would definitely consider new bullish position. However, given the overall picture of this chart, and how beautiful the fractal symmetry of it is, I highly doubt we will see an upside breakout, before we reach the downside target.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It
Looking at the chart, we can see that after breaking out from the original symmetrical triangle (dashed triangle) LTC has formed yet another symmetrical triangle (in black.) This formation validates my original bearish position on LTC. I was a bit surprised to see the first symmetrical triangle move to the upside, but it has just formed a larger symmetrical triangle in the process. For those of you who don't know this, symmetrical triangles are typically continuation patterns. Given the fact that we are in a bear market correction, and trapped inside of a huge downtrend channel, the expected continuation would obviously be to the downside.
Before we go any further, and delve into the beautiful fractal nature of this chart, I want to emphasize the fact that I am a strong believer in fractal market theory. In mathematics, fractals can be described as fragmented geometric shapes, that can be broken into smaller parts, which fully or nearly replicate the whole." Yesterday, someone commented on one of my posts that "The problem is 'professional traders', as you call yourself, think market has a pattern all the time, and is a beautiful drawing." He's absolutely right.
Looking at the chart, you can see that when LTC ran up to the all-time high, it formed a head and shoulders pattern. It took a while for that head and shoulders pattern to begin to produce a breakdown on the chart, (contrary to the instant results that many novice traders expect) but a breakdown was produced, none-the less. After measuring the height of the head and shoulders pattern, and subtracting that amount from the neckline, we can see that it gives us a price target around $100. More recently, LTC formed this series of symmetrical triangles. When I measure the newest symmetrical triangle, and subtract that measurement from the proposed breakdown level, we can see that the price projection is nearly identical to that of the head and shoulders pattern. THAT, is the fractal nature of the markets at work. It is fragmented geometric shapes, that fully or nearly replicate the whole. That said, I think it is inevitable that we reach the head and shoulders target, that has been on my chart for weeks now. So many people criticized it, when I first put it on the chart. I'm sure they'll be silent when we actually get there.
With that said, I am still a TRADER! I analyze the market, in a very efficient and accurate way. However, if the market moves against my analyses, I am generally quick to reconsider my positions. I'm nimble, and not at all emotionally attached to my views on the market. Therefore, if I were to see an upside breakout, above the blue parallel channel, I would definitely consider new bullish position. However, given the overall picture of this chart, and how beautiful the fractal symmetry of it is, I highly doubt we will see an upside breakout, before we reach the downside target.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It
Comment:
Fact: Symmetrical triangles often return to the apex. After a breakout (up or down,) the apex can turn into a future support or resistance point. Price can sometimes return to the apex before resuming in the direction of the initial breakout.