Litecoin has been moving against MA50 without being able to break through of it and that’s why MA50 should be considered as resistance. The price is located close to the intersection of important levels such as linear resistance levels (MA50, downtrend line) and support zone ($81.7 - $79.5) which is located near to 0.618 fib level.
If you didn’t know that most of the time reversals does happen from 0.618 fib level and when it is combined with the first support level in between of $81 - $79 levels it becomes very attractive area to look for confirmed reversal. This of course requires for a pullback to happen but when it does happen then it would be the first area to look for a reversal.
Volume is diminishing and if the price starts breaking out through of MA50 level + downtrend line then volume should follow up with the breakout. This gives more confidence to the breakout.
There are two strategies that can be utilized here (with stop-losses, don’t forget!):
You can buy either the confirmed breakout or you can wait for a pullback. There are several aspects to take in note when the price starts moving either way and taking trade in this area can offer more risks than opportunities.
Conclusion
Taking a trade at these levels is actually offering more risks than opportunities and it would make trading pretty random as there isn’t any proper setup, yet. It’s good to keep in mind that randomness is something that ruins a good trading habits in the longer run and increases your risks to take trades in middle of nowhere. That’s why I have set few conditions that under I’m willing to take a trade. When the support area doesn’t hold and is looking to move lower, then I’m waiting for another trading opportunity to happen.
On the longer term perspective the price has to take down the resistance zone in between of $89 - $92 levels to indicate any bullishness.
The price has been ranging in between support/resistance levels and they are actually offering really good trading opportunities if you manage to catch a bottom with confirmed reversal signals for example.
Please, if any question comes to your mind don’t hesitate to ask! I try my best to respond ASAP!
If you need help with trading, finding information or courses let me know and I’d be more than happy to help you! Feel free to DM me in here or in my Twitter!
Things to Remember:
DISCLAIMER:
Please be aware this is not financial advice. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing in anything.
Yarr
If you didn’t know that most of the time reversals does happen from 0.618 fib level and when it is combined with the first support level in between of $81 - $79 levels it becomes very attractive area to look for confirmed reversal. This of course requires for a pullback to happen but when it does happen then it would be the first area to look for a reversal.
Volume is diminishing and if the price starts breaking out through of MA50 level + downtrend line then volume should follow up with the breakout. This gives more confidence to the breakout.
There are two strategies that can be utilized here (with stop-losses, don’t forget!):
You can buy either the confirmed breakout or you can wait for a pullback. There are several aspects to take in note when the price starts moving either way and taking trade in this area can offer more risks than opportunities.
Conclusion
Taking a trade at these levels is actually offering more risks than opportunities and it would make trading pretty random as there isn’t any proper setup, yet. It’s good to keep in mind that randomness is something that ruins a good trading habits in the longer run and increases your risks to take trades in middle of nowhere. That’s why I have set few conditions that under I’m willing to take a trade. When the support area doesn’t hold and is looking to move lower, then I’m waiting for another trading opportunity to happen.
On the longer term perspective the price has to take down the resistance zone in between of $89 - $92 levels to indicate any bullishness.
The price has been ranging in between support/resistance levels and they are actually offering really good trading opportunities if you manage to catch a bottom with confirmed reversal signals for example.
Please, if any question comes to your mind don’t hesitate to ask! I try my best to respond ASAP!
If you need help with trading, finding information or courses let me know and I’d be more than happy to help you! Feel free to DM me in here or in my Twitter!
Things to Remember:
- Stop-loss orders are strongly recommended.
- Beware of buying tops or FOMOS, you might end up losing or waiting long periods of time before getting anything back.
- Do your homework before investing.
DISCLAIMER:
Please be aware this is not financial advice. You are responsible for your trading and investing decisions. It is highly recommended to do your own research before investing in anything.
Yarr
