MagicPoopCannon

Litecoin May Be A Wolf in Sheep's Clothing (LTC)

BITFINEX:LTCUSD   Litecoin / U.S. Dollar
Hi world! Welcome to your daily dose of LITECOIN! Let's jump right in. Looking at the four hour chart, you can see that LTC continues to chop around inside of this big bull flag . After falling back to the bottom of the flag, and testing it as support, LTC bounced right back toward the top, surpassing the 20 EMA (in blue.) There is still a bit of a head and shoulders look, happening inside of the flag, but that's not the larger pattern. The larger pattern is the bull flag , and generally, larger patterns will trump smaller patterns that form inside of them. However, if LTC falls back down to the bottom of the flag, it will effectively be completing the formation of the right shoulder. There were some comments in my last post, questioning whether or not that was a head and shoulders pattern, because it doesn't have a normal look of a H&S pattern. This is something that people often make mistakes on in their analyses. Head and shoulders patterns do not have to be perfectly symmetrical. The left shoulder can be higher than the head, but typically, if the right shoulder trades higher than the head, that will invalidate it as an H&S pattern. With that said, there are H&S patterns that have developed, with the highest point being the right shoulder. That's relatively uncommon though. Shoulders can also be elongated, and the neckline can be flat, slanted up, or down. The head can have multiple peaks. There are many variations. Occasionally, the right shoulder may be incredibly small, because the selling pressure can increase rapidly in the right shoulder. So, the best practice is to not be so fixated on the proportions of the pattern. Instead, try to identify the general structure, and compare it to your other indicators. In this case, the H&S pattern is inside of a larger, more dominant bull flag . Usually, the larger patterns will trump the smaller ones. For now, it's something to pay attention to, because we don't want to be blinded by this big and glorious bull flag , when there may be something negative developing. The volume has been steadily declining, which is typical for wedge type formations, as price action approaches the apex. The MACD appears to be curling back to the upside, but technically, we're still trading under a bearish crossover. For now, let's keep an eye on the 20 EMA as support. If it falls, the right shoulder will probably form with the quickness. Until that happens, we are still in a big bull flag , and the bias is to the upside.

I'd like to point out one more thing, about the action inside of the flag. You can see that when LTC touched the bottom of it, we rallied hard. Then when it reached the top, we pushed, and pushed, and tested it over and over. So you can see that we're jumping off of the bottom of the flag, and trying to force our way out of the top. It's like a door that we're kicking. The more we kick it, the more likely it is to fall. Or perhaps LTC will get tired of kicking, and go home to mommy. Time will tell. Watch that 20 EMA , and remember DON'T TRADE UNTIL YOU SEE A BREKAOUT! I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.

This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***

-MPC loves you-

-JD-
Feb 19
Comment: Litecoin just broke out of the bull flag, like an absolute BEAST! Let's watch to see if it holds. We need to see this candle close above the flag.

-Magic-
Didn't hold. it's crashing
Reply
Maybe, due to LCC(Litecoin Cash is fake) or LitePay is not effective + BTC bounce back from $12000 ---> LTC down heavily now! Wait for $100 again ? Any idea now?
Reply
Breakout failed, lack of volume.. it can go below $150~$180 in the short term? any idea?
+1 Reply
raaajesh HuynhLoc
@HuynhLoc, Dear Huynh please know that next crash has just begun.
+4 Reply
Just glad this isn't rigged
-23 in minutes
+1 Reply
@Chipbo, lmao
Reply
Breakout failed, lack of volume :-(
+2 Reply
christophelorenz christophelorenz
Bad luck, break out happened at the same time as big BTC fall. It ruined the nice flag ...
Reply
meresinclair christophelorenz
@christophelorenz, you think we go below $200 again here in the short term?
Reply
christophelorenz meresinclair
@meresinclair, No clue :-) However the last run from 160 to 220+ seemed quite unreal and unsustainable.
I guess it will hover around 220 for some time.
But at this stage I guess that if BTC drops again, LTC will follow like most of the alt coins.
It's probably a 50-50 chance now.
Reply
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