Hey traders! This is my first analysis on steemit and you might have seen my previous article: "Beginners Guide to: How to use Moving Averages to Day Trade?".
Anyhow..
Recent news haven't been flattering Litecoin at all! LitePay did fail and many got disappointed but did you know that there is another project coming that is very similar to LitePay? (GOOD NEWS!)
You can read more about it here: https://litepal.io/blog/2018/03/27/litepal-is-coming/
But hey! We focus on technical aspects here!
The daily chart is showing a descending channel pattern. The descending channel is short-term bearish pattern and usually followed by the higher prices, but only after breaching above of the upper trend line. It will keep continue channeling further down until it is able to break either the lower or the upper trend line.
This pattern can be found more often during the long-term uptrend (considered as a continuation pattern), than downtrend (reversal pattern).
What are the things to pay attention to?
1) Trend lines
The price needs to break above of the upper trend line to give us bullish signal and by moving further down it would indicate for bearish continuation.
2) Support zones.
From these levels can be opened new entries because as the price has quickly rejected from these levels in the past and that's why they are good areas to watch for reversals.
3) The daily is showing a doji candlestick.
It's important to highlight that the Doji pattern does not necessarily mean reversal, it means indecision. When the doji pattern appears, it often means that the market is exploring it's options both ways up or down.
If the price manages to break above of the daily pivot level (which can be found at 186), then the price movement can be considered as a bullish. Until then we have to watch where the price action takes us and let the chart do all the work.
Conclusion:
Wait for confirmed reversal signals such as Divergences, MA golden crosses or Bullish Candlestick patterns with expanded Volume before considering buying in.
Keep in mind that bitcoin is still leading these markets and have a lot of control over the current trend. So it can be wise to wait until bitcoin shows clear sign of which path it's going to take.
Anyways, if enjoyed reading this and would like to see more of these let me know by commenting, following and upvoting!
Please, if any question comes to your mind don't hesitate to ask! I try my best to respond ASAP! :)
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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 anything.
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