After watching Bitcoin itself rally more than 50% over the past couple of weeks I couldn't help but notice that many of the alt-coins simply have not participated. That in itself is an interesting 'tell' to me in that it suggests we are at the beginning of a bull wave (establishing floor in senior names) not at the end (speculative bubble where anything industry related rallies). Indeed, one proxy, the spread between LTC/BTC has hit levels not seen since last November. While this certainly isn't a buy in itself, it does represent to me purchasers of the Alts are not buying into a bubble. Relative valuations are low and given time that relative under performance should at least correct back to the 'norm'. So that brings me to LTC's chart and what it might be suggesting going forward. Very much like BTC's 4hr chart post of a couple weeks ago, LTC is registering multiple 'double bottoms' on the four hour chart. Time after time, price has entered the $11.00 area and been rejected higher which simply suggests to me demand simply outweighs supply at/near these levels - someone is buying!
Indeed, I could realistically make the argument to buy each of the double bottom levels with stops (risk) below $9.70. Considering peer performance, I am inclined to want to listen to the market and be a buyer. So, as the chart indicates, I will try to buy at the horizontal grey bar levels and risk to those recent lows at $9.70. I will work multiple orders over the levels indicated and it may take some time to get my fills. If filled on all orders my average cost will be about $11.40 and my risk will be $1.70 or about 15%. Since I want all my trades to have at least a 2:1 reward to risk profile, I shall be looking to sell at least a portion of my long position at or near $14.80. And of course, my risk on this entire trade does not represent more than 5% of my entire working portfolio or 'stake'...
Cheers all and I hope my simple analysis is of benefit...
If my charts help you, or you use my indicators...
please consider a BTC donation to allow me to
continue my work :
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Indeed, I could realistically make the argument to buy each of the double bottom levels with stops (risk) below $9.70. Considering peer performance, I am inclined to want to listen to the market and be a buyer. So, as the chart indicates, I will try to buy at the horizontal grey bar levels and risk to those recent lows at $9.70. I will work multiple orders over the levels indicated and it may take some time to get my fills. If filled on all orders my average cost will be about $11.40 and my risk will be $1.70 or about 15%. Since I want all my trades to have at least a 2:1 reward to risk profile, I shall be looking to sell at least a portion of my long position at or near $14.80. And of course, my risk on this entire trade does not represent more than 5% of my entire working portfolio or 'stake'...
Cheers all and I hope my simple analysis is of benefit...
If my charts help you, or you use my indicators...
please consider a BTC donation to allow me to
continue my work :
1EBttA56cWsgtsZn83VGiNT8si7inZV5Z5
& follow me on Twitter @CRInvestor