MarcPMarkets

LTCUSD: Nearing Buy Trigger. Why The Limit Order?

BITFINEX:LTCUSD   Litecoin / U.S. Dollar
LTCUSD             update: Price retreating from the 140 level as the noise in the coins continues. Now that a second lower high has been established, converging trend lines can be drawn to indicate a descending wedge . Formations like these around significant support zones are places to look for strength.

If you read my recent LTC article on S.C., I issued a specific trade call using a limit order under the market. I made this call while price was trading above 137.84. My limit order (see S.C.) still stands.

How did I know the market would pull back? I didn't. I am looking to capitalize on a very specific condition that either the market will express, or not. Since BTC             has been very noisy recently, I figured let's see if the noise persists.

I do know that 132.72 and 125.68 are reversal zone boundaries. These are high probability support areas that price is more likely to find support and retrace from. If I am going to buy with a blind limit order, I would rather do it closer to these levels.

The other factor that helps me place an order like this is something called patience. I do not care about missing moves, because I know that opportunities in any financial market are infinite             . If the market blew through 140 and never looked back, then I miss the move. Am I losing anything? If you said yes, then you still have much to learn.

At this point, the order has never gotten filled. Missing the move is still a possibility, but as you can see, there is a better chance it gets filled soon.

Like I wrote on S.C., focus on probability, not profitability and you will find yourself in better trades. If I get filled, I know there is a higher probability that price will find support nearby and retrace toward the 150 resistance (.382 of recent bearish structure). I would rather take the risk in the low 130s than at 140.

Jumping into a market for the fear of missing a move is a reactive decision. These impulsive decisions are at the core of the herd mentality. Greed and fear are what drive order flow and in order to capitalize on this nature, you must not think in the same terms.

By placing an order under the market, I am positioning to benefit from this irrationality. Keep in mind, I can still be wrong and the market can continue much lower, but that is why I have a stop in place. Check S.C. for updates this market.
Marc Principato, CMT |Author: Analyze Any Financial Market Like The Pros Using Price Action| http://www.Priceactiontraders.net | Cofounder http://www.seekingcryptos.com (S.C.)





Have a slightly different view though.
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Stopped out?
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You'll probably think this is too esoteric and unreliable I know, but it gives the same levels as your analysis as well as a historical market structure for LTC breakouts
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Always appreciate the analysis Marc!!
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Thanks for the lesson
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You want to beat the bears? Then don't buy their coins. Force them to hold their bags. Prices will gradually increase, and shorts using leverage will be stopped out of their trades. In other words, they will lose. We cannot beat these guys as long as we continue to buy their bags. They laugh when we lose. Don't buy their coins!
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its not missing the move marc its missing the SWING, there were 3 or 4 good ones on this chart alone. my major ltc position is going to take some drawdown at 125
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'If the market blew through 140 and never looked back, then I miss the move. Am I losing anything? If you said yes, then you still have much to learn.'

To be fair, if you are trying to accumulate LTC rather than fiat, then you are definitely losing.
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@Toast_, I think it's important to note that if fiat dies, it would only be because the economy has plummeted on a global scale. If that happens, then you can say goodbye to the Internet. Thus, your digital currencies would be useless. At that point, you better hope you have silver or gold.
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Wise words. Thanks for writing.
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