Litecoin: Trend Reversal Signals and Possible Buy Signals
Litecoin / U.S. dollar BITSTAMP:LTCUSD
In 2017, Litecoin was one of my favorite coins. After 2018, I changed my opinion, and now I think this market is not so good as before. In spite of this fact, I will continue providing overviews and trading ideas for Litecoin, as it can be in the portfolio of many traders.
What will we see and which signal we get from the daily chart?
The price broke the downtrend line and provided us a trend reversal signal. The same signal we got from the bullish divergence . The price is at the main uptrend line, which shows the main trend from the higher timeframe. The price action in this zone will be able to give us an understanding of further market movements and possible trading signals.
Mainly, we have two possible directions.
If you belong to buyers, you will be interested in the following signals:
– RSI confirmed the price reversal from 60.00 support level
– MACD lines support the further upward movement
– MACD histogram confirmed the reversal and now supports the upward movement
– ADX line of DMI indicator falls, and it tells that sellers are not active.
All these signals are bullish , and if the price moves above the main uptrend line, it will be possible to open long trades for medium and long term holding. Stop orders for such trades must be placed below 60.00 support and profit targets at the resistance levels.
If you belong to sellers, you will need to wait for a reversal from the uptrend line, which acts as a resistance line. We have 70.00 resistance level , which can also stop the upward movement. If the price drops below 60.00 support, it will be an additional signal confirming the further falling. And one more thing, you have to watch for BTCUSD market. If Bitcoin falls, this market also will move in the same direction.
If you have your own ideas about this market, please share them in comments. Let’s discuss!
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Source: TW DLavrov