Hi there!
Here is an advanced technical analysis for LTC/USD based chart patterns, PLUS a ready-to-use trading strategy and a set of trading signals.
Keep reading, and you’ll get exact instructions on how to trade LTC/USD and achieve profitability!
The medium-term trend for LTC/USD is NEUTRAL. However, based on technical analysis and chart patterns, the continuation of the DOWNWARD trend is more likely over the short-term.
The recommendation is to SELL LTC/USD over the next week, and watch for reversal signals very carefully (by analyzing the chart, as presented above).On Mar 19 the price broke through the lower trendline of an ascending trend channel. So, technically, we received a short-term trend reversal signal to DOWNWARD.
In fact, now is an excellent opportunity to enter SHORT at $48.5, which is the upper trendline of a descending trend channel and is a local resistance level.
From this line, the downside potential constitutes 10% over the next week, which you can increase to 100% by using a moderate (10X) level of leverage.
The next strong resistance level is set at $50.5. This resistance is a local extremum and is significant. You should use it as a Stop-Loss price.
Based on this analysis, if the downward trend continues, the price is likely to decline to the next significant support level at $44. Use the $44 price target as a Take-Profit level.
These conclusions are confirmed by the analysis of chart patterns and trend channels, as presented on the chart. According to this strategy, we have a 10% downside potential, which can be magnified to 100% by using a moderate (10X) level of leverage. With the Stop-Loss level placed at $50.5, the risk-reward ratio is 2.3x.
So, here is a summary of trade signals for LTC/USD:
- The base-case scenario is a continuation of a DOWNWARD TREND. Reversal upwards IS possible.
- Enter SHORT at $48
- Set a Stop-Loss at $50.5
- Set a Take-Profit at $44
- Forecasted P&L: +$4.5 or +10% (or +100% per 1 Lot with 10x Leverage)
- Risk/Reward Ratio: 2.3x
The following technical analysis tools confirm trade signals:
- 10-Days Bollinger Bands indicator. The price is BELOW the 10-day MA and the MA is DECLINING. Technically, the signal is SELL.
- Fast Stochastic oscillator (6,3,3). Stochastic is approaching an oversold range, which is a short-term bullish signal. You should wait until the price adjusts upward to $48 and when %K moves from above the %D line to below it, and then enter short / sell LTC/USD.
- Chart patterns (trend channels). We got a clearly formed downward trend channel. The trendlines of this channel slope in a downward direction and the LTC price is making lower lows and lower highs. This represents a continuation chart pattern and confirms the downward trend signal. The targets are clearly identified and presented on the chart for your convenience.
I hope this analysis was useful to you.
If you like it and would like to receive future updates - Please, follow me on TradingView!
If you follow me, I guarantee you will receive timely updates in the future, including any confirmatory and trend reversal signals according to this trading strategy. This will allow you to stay on top of the current Litecoin trend and hopefully maximize your profits!
If you agree, please, Like this idea - This would be the best feedback and encouragement for me!
To your trading success,
Monfex
Here is an advanced technical analysis for LTC/USD based chart patterns, PLUS a ready-to-use trading strategy and a set of trading signals.
Keep reading, and you’ll get exact instructions on how to trade LTC/USD and achieve profitability!
The medium-term trend for LTC/USD is NEUTRAL. However, based on technical analysis and chart patterns, the continuation of the DOWNWARD trend is more likely over the short-term.
The recommendation is to SELL LTC/USD over the next week, and watch for reversal signals very carefully (by analyzing the chart, as presented above).On Mar 19 the price broke through the lower trendline of an ascending trend channel. So, technically, we received a short-term trend reversal signal to DOWNWARD.
In fact, now is an excellent opportunity to enter SHORT at $48.5, which is the upper trendline of a descending trend channel and is a local resistance level.
From this line, the downside potential constitutes 10% over the next week, which you can increase to 100% by using a moderate (10X) level of leverage.
The next strong resistance level is set at $50.5. This resistance is a local extremum and is significant. You should use it as a Stop-Loss price.
Based on this analysis, if the downward trend continues, the price is likely to decline to the next significant support level at $44. Use the $44 price target as a Take-Profit level.
These conclusions are confirmed by the analysis of chart patterns and trend channels, as presented on the chart. According to this strategy, we have a 10% downside potential, which can be magnified to 100% by using a moderate (10X) level of leverage. With the Stop-Loss level placed at $50.5, the risk-reward ratio is 2.3x.
So, here is a summary of trade signals for LTC/USD:
- The base-case scenario is a continuation of a DOWNWARD TREND. Reversal upwards IS possible.
- Enter SHORT at $48
- Set a Stop-Loss at $50.5
- Set a Take-Profit at $44
- Forecasted P&L: +$4.5 or +10% (or +100% per 1 Lot with 10x Leverage)
- Risk/Reward Ratio: 2.3x
The following technical analysis tools confirm trade signals:
- 10-Days Bollinger Bands indicator. The price is BELOW the 10-day MA and the MA is DECLINING. Technically, the signal is SELL.
- Fast Stochastic oscillator (6,3,3). Stochastic is approaching an oversold range, which is a short-term bullish signal. You should wait until the price adjusts upward to $48 and when %K moves from above the %D line to below it, and then enter short / sell LTC/USD.
- Chart patterns (trend channels). We got a clearly formed downward trend channel. The trendlines of this channel slope in a downward direction and the LTC price is making lower lows and lower highs. This represents a continuation chart pattern and confirms the downward trend signal. The targets are clearly identified and presented on the chart for your convenience.
I hope this analysis was useful to you.
If you like it and would like to receive future updates - Please, follow me on TradingView!
If you follow me, I guarantee you will receive timely updates in the future, including any confirmatory and trend reversal signals according to this trading strategy. This will allow you to stay on top of the current Litecoin trend and hopefully maximize your profits!
If you agree, please, Like this idea - This would be the best feedback and encouragement for me!
To your trading success,
Monfex
