Litecoin shows the amazing upward movement. The bulls are strong, but now we must think about further price reversal and a correction movement. We must not buy now, because it's too risky. If we open long trades now, we have good chances to do it on the high. That's why we must wait for a correction and only after that open new long trades. What to do with long trades which make good profit now? Of course it depends on your money management strategies and your trading plans. As for me, I've closed all my long position for Litecoin above 86.00 level. These trades gave good profit. Even if the market jumps to 500.00 USD without correction, I don't care.
Proper trading is when you do right things. I have following reasons for exit from this market. RSI is in the overbought zone. MACD climbs too high from the signals line. Litecoin started movement from 50.00 level and now it is at 90.00 level. The upward movement is about 100%. It's possible to consider that this market becomes overbought. Yes, DMI confirms strong upward movement, but it's lagging indicator. Probably a reversal zone will be between 90.00 and 100.00 levels. Of course the market can pass througt without any problems, but this zone is logical for price reversal with further downward movement.
If so, we'll have to wait when the market drops to one of SMA. These support lines will be good for buying based on confirmed reversal signals. Also we can use Fib Retracement grid for spoting levels for opening long trades. Just don't forget that all good buy signals will have to be confirmed by reversal candlestick patterns, RSI and MACD histogram.
Get more trading ideas here https://www.tradingview.com/u/DLavrov/
