MagicPoopCannon

Litecoin is The Right Coin. Yeah. I love it. (LTC) =D

BITFINEX:LTCUSD   Litecoin / U.S. Dollar
Welcome friends, as the mystical magician of the charts, proudly presents — LITECOIN! Let's jump right in. Look at the four hour chart, we can see that the bull flag finally broke out! If you recall from yesterday's post, I said "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." That was the condition that I wanted you to pay attention to. On the chart, you can see that the condition was never violated. The 20 EMA held like a rock, and the bull flag exploded higher. Looking at the volume , we can see that the breakout occurred on heavy volume as well, which confirms it as a substantial breakout. The MACD has also crossed over bullish . However, as you can see, price has reversed and the MACD has flattened in response. If you look closely, you can see that the current price is almost exactly on the highest point of the flag. So, what's happening here, is we've broken out, and then reversed to test the highest point of the flag as support. This is very constructive price action, for a sustainable rally. We don't want to go parabolic, becasue parabolic moves are often dramatically retraced. We want to see LTC continue to stair-step higher, forming small corrective moves along the way.

There were a lot of people asking when they should enter a trade on a bull flag breakout, in my comment section yesterday. I've answered this question before, but I will answer it again. Keep in mind, this is for educational purposes only. When you see a breakout, of any kind, you can place your trade immediately, with a stop order just below the breakout trendline . In this case, the moment you saw LTC beginning to break out, you could have placed a buy order, with a sell stop just below the top trendline of the flag, perhaps around $225. That way, you've entered the trade at the breakout, but your downside risk is minimized. You have the protection of the breakout trendline , between the current price action and your stop order. If the trade rolls over and hits your stop, you take a small loss, and exit the trade. However, that is typically uncharacteristic of a breakout. Instead, it's more likely that you would have just entered the spaceship at liftoff. That's why we identify the patterns, and trade the breakouts. I gave the same insight for the breakout of the falling blue tunnel of death (blue downtrend channel .) You can see what has happened since then.

Overall, LTC is making strong progress through the new pink uptrend channel . Bitcoin is running into resistance, as it tests the top of it's downtrend channel that it has been in since the highs. If bitcoin fails to breakout, LTC will probably head lower with it. If BTC breaks out, LTC is likely to find support here at the top of the flag, and run higher, to the next target at the 38.2% retrace, and then the top of the channel. Underneath us is a ton of support, and there is very little resistance above. So, technically, the path of least resistance is up. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.

Ps. Just as I was posting, LTC started to jump, as BTC popped above it's downtrend channel . =D

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-
Wtf dude, the magic didn’t work here!
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Looks like copy and paste of that inverse HS pattern.
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MPC, does this look like LTC has changed to an Ascending Bull Price Channel?
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ooops poops! $212 and dowing?
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Btc shot that flag down.. was looking so good. Will be back though.. can't keep a good coin down.. a sexy digital currency is going to do what a sexy digital currency is going to do.. or like a not so wise man once said, you can fork the coin but you can't take the coin out of the fork.. use the fork.. btc is your father ltc.. noooooo!!!! etc.
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LTC is forming a big dragonfly doji off of the bottom of the flag, and it's actually back above the flag at the moment. BTC will probably drag it down though.
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j0nesy1977.mj MagicPoopCannon
@MagicPoopCannon, I think you’re right. BTC being manipulated I think. I have no idea where this will go next but hit my stop loss so I’m out and watching from the sidelines
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andrewpomerans MagicPoopCannon
@MagicPoopCannon, Curious, if its back inside the flag - does the flag become valid again?
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urbanknight andrewpomerans
@andrewpomerans, Same question here I'm curious too
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mvogel13 MagicPoopCannon
@MagicPoopCannon, Good market manipulation... See what happens and thank you for everything!
+2 Reply
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