There were a lot of people asking when they should enter a trade on a 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 .) You can see what has happened since then.
Overall, LTC is making strong progress through the new pink . Bitcoin is running into resistance, as it tests the top of it's 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 . =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.***
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