The Litecoin paid off today and its relative strength to BTC of late is showing true!
In the video below I go into full detail of LTC price action, the trade that was made and why.
Setup and Outlook
As discussed previously, the entry was when LTC bounced off the 200 day moving average (blue line) the first time with a reversal candle (circled in gold).
That completed my bullish u-turn entry pattern, which you can learn in video #2 of the ScaredyCatGuide to Investing in Cryptocurrency course
So with that said, we had a profit target of 190-191 (the most recent top) and an entry of 130. The stop loss was 100, the low of the entry candle.
Thus, giving us the minimum 2 to 1 risk reward ratio you should have on any trade/investment.
The target was reached in the late hours of night (for EST people) and my order executed.
This trade was an addition I made to my core position with a goal of picking up some $$$. As you can see it took over a week to develop and was made off the daily chart.
This is position trading or active investing, if you will. There is no need to day trade unless it is something you want to do.
Relative Strength
Granted, LTC wiggled back and forth a bit before finally moving higher.
However there are two positive things it did that BTC did not...
- Close below the 200 day moving average
- Make a lower low after the initial bounce.
In layman's terms: it was acting better than BTC; and now it is that made a push higher and brokeout of its descending channel on the daily chart.
Relative Strength is Real!
See the complete breakdown in the video:
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Best Regards,
Disclaimer: All info in this post is my opinion and for educational use.