It looks like there's a lot going on in this chart but there's really only 3 simple things! The horizontal lines are fibonacci extensions. Fibonacci numbers are the numbers that make up spirals. They're everywhere in nature! Seashells, galaxy spirals, music, and what do you know, they seem to work like magic in charting! See how the numbers match to where litecoin hits resistance. So pairing that with elliot wave
theory (the 1,2,3,4,5) we can see the two are suggesting 500! And potentially 700 if litecoin decides to extend to the next level, which wouldn't surprise me. I've also drawn the wedges
litecoin formed at the first resistance level
and now the current level! You see in the first wedge
, it broke out and retraced back to top of wedge
before bouncing off on the 3 wave to 350. Now it could be bouncing off and heading to 5 wave.
This is my first time trying elliot/fibonacci, so I would only take this as an experiment. I did, however, get the idea from a professional trader I follow. Let's see if it works.