LTCUSD
LTC having followed the recent temporary bullish pattern initiated by BTC, we can see the price break past the 0.618 retracement level. In my recent post on this matter, I had expressed concern for a potential breakout down toward the 0.786 retracement level as an overall downward trend is still in play. That being said, two things are evident 24 hours since that post.
i) The price breaks past the 0.618 retracement level.
ii) The price breaks above the moving average.
- This doesn't necessarily mean the price reversal is in play.
For some, this presents a great positional opportunity to initiate some trades whether it's going long or short. Again, my recommendation would be to pay attention to the long term trend. A number of new traders tend to measure significant moves and pullbacks in the short-term without keeping the bigger picture in mind. A narrow perspective on this can result in a number of misguided trade positions. Based on the chart, we can establish that the long-term trend in the LTC/USD pair is downward after a significant upward trend that saw LTC prices soar up to $100 before the downward trend initiated. By keeping tabs on the long-term trend, traders are able to apply Fib retracements (and their confirmations i.e MACD & RSI) in the right direction of momentum and set themselves up for great opportunities, ignoring this can and will result in the exact opposite. A calm, collective and stable mind on your positions will reap rewards.
So for the moment, we watch what happens with the price and make our long term decisions based on that. Before BTC corrects, LTC is just along for the ride.
Please note that my views are not to be considered trading advice or knowledge. My thoughts on this matter are exactly that, thoughts. I will not be held liable for losses on your part after your decision to follow what I have mentioned here. That being said, Thank you for reading my perspective. Leave your thoughts below.
