Analysis:
While BTC has been bearish and downright end-of-the-world speak for some people, the fact is that its Long-Term sentiment is still Bullish. Notice that the trendline of the daily stochastics has been down for pretty much since the high of BTC. These trend that I have spoken of in past blogs has shown to last from days to weeks (in the case of chart above), whereas weekly signals tend to last weeks to months. That is why it is good to understand how to view time-frames and to understand how long indicators last. Also to note is the price action once it enters extreme conditions (OB / OS) conditions. This particular chart shows an OS range entry (Below 20). Push below this level has always given an accelerative reaction, and shouldn't be a signal to go the opposite way.. (OverBought = HOLD LONG, OverSold = HOLD SHORT) not the other way. But most will ask, well when then should we go the other way? Most often its when the signals exit these extremes(only then will risk of acceleration go down), evidence of the signal shown below. The green levels are the Fib. levels to watch, and due to the rise of BTC prices, it seems hard to comprehend price could pull back so deep. It may or it may not, but knowing where the support / resistance lie allows us to plan ahead of time. These trendlines are not random, they are considered harmonics and price react to this and will do so into the future.
LTC:
While crypto-currency follows other crypto-currencies up or down, the magnitude differs. I will explain as clear as I can.. What I mean by this is that on a daily basis, LTC BTC and ETH could rise together, but one might rise further and higher than their previous highs, while the other will also rise but fail to make gains. The next time they all fall or pullback the ones who did not make the large strong push tend to fall deeper into a down trend. This is a perfect example of LTC, which Long-Term is in a Bearish trend compared to BTC. The daily signal does show a bullish move UP, but if the signal fails to move into acceleration territory (OB >80) then a turn down will resume its bearish trend past the last bullish support in dotted green and current low. Where can we see LTC? $50 is pretty close and $10 dollars away from the resistance it is facing now (Major Resistance to Overcome). $50 is also a Major Support, so a realistic BTFD would be at that level.
Foot Note:
-RIGHT CLICK ON IMAGE AND OPEN IN ANOTHER TAB TO SEE FULL RESOLUTION-
When analyzing this chart, you will notice the Slow Stochastics indicator. I find this indicator to be the complete indicator compared to the vast majority out there. Lets explore the terms I will be using. Also use the indicator based on its respective time-frame:
Time-Frame:
1 hour - Lasts 1 hour - Few days
Daily - Last Days - Week(s)
Weekly - Last Week(s) to Month(s)
Term used:
OB - OverBought (above 80)
OS - OverSold (Below 20)
Bullish - Above 50
Bearish - Below 50
Trend - Cross up in both channel line or Cross down in both channel line.
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