The simplest indicators show the clearest picture to understand a trend.
I pay very close attention to the daily RSI during both bear and bull markets.
Basic rule:
During bear markets Daily RSI struggles to stay above 50.
During bull markets Daily RSI struggles to stay under 50.
At the time of writing, RSI is around 53. First time since June 30th.
Chaikin Money Flow index is inching closer to zero ( zero is the borderline between bear and bull markets), above which a strong price action to the upside can be expected.
20 days Moving Average is currently providing support to the price. The only concerning fact is that 50 days moving average is sloping down with a threatening angle. Such an angle would abort the upside movement of the price and may shift the trend in favor of the bears. I expect the Litecoin to consolidate sideways for few days, then to attack the 50 D MA. If it succeeds breaching it to the upside, then a bullish crossover of 20DMA and 50DMA will occur.
At this stage, I would wait for few days to give the 20 DMA to catch the price, also keeping an eye on the RSI and CMF. If you think that the price will continue it rise from here without consolidation, you can buy at this price putting a stop loss around 20 DMA. 20DMA historically provided support to LTC price during bull markets, however, at this current stage it is a weak support. It will become a stronger support only when it is above 50DMA. From risk management perspective, although the RSI and CMF are giving very bullish signals for the short term, I would consider waiting for the bullish crossover of 20 and 50DMA to succeed first.
I pay very close attention to the daily RSI during both bear and bull markets.
Basic rule:
During bear markets Daily RSI struggles to stay above 50.
During bull markets Daily RSI struggles to stay under 50.
At the time of writing, RSI is around 53. First time since June 30th.
Chaikin Money Flow index is inching closer to zero ( zero is the borderline between bear and bull markets), above which a strong price action to the upside can be expected.
20 days Moving Average is currently providing support to the price. The only concerning fact is that 50 days moving average is sloping down with a threatening angle. Such an angle would abort the upside movement of the price and may shift the trend in favor of the bears. I expect the Litecoin to consolidate sideways for few days, then to attack the 50 D MA. If it succeeds breaching it to the upside, then a bullish crossover of 20DMA and 50DMA will occur.
At this stage, I would wait for few days to give the 20 DMA to catch the price, also keeping an eye on the RSI and CMF. If you think that the price will continue it rise from here without consolidation, you can buy at this price putting a stop loss around 20 DMA. 20DMA historically provided support to LTC price during bull markets, however, at this current stage it is a weak support. It will become a stronger support only when it is above 50DMA. From risk management perspective, although the RSI and CMF are giving very bullish signals for the short term, I would consider waiting for the bullish crossover of 20 and 50DMA to succeed first.