23 sept -> Early signs of a downward trend, but will LTC drop?!
So on the 1-hour chart you see some pretty interesting patterns. First of all you see that a rising wedge is forming. It is likely that the price is going to break down the pattern, because the prior trend was going down. Of course you need to wait out until this pattern is completed.
The next thing you see that the price is forming a double top in a resistance zone. If this pattern is completed, then you can expect the price is going to the bottom line of the rising wedge. After this you need to find out if the price is going to either break down or bounce from it. If it breaks down then you can expect that the price is going to move downwards.
- So for entry, you have to decide for yourself when to step in. Think about the risk/reward ratio
• Step in now (risky)
• When the price moves away from the resistance zone (pretty safe)
• When the double top pattern is completed (safe)
• When the price breaks down the rising wedge pattern (safe as hell)
- For stop loss it depends where you step in:
• You can put a stop loss at 0.009051, this is where the resistance zone ends
• But I prefer to trail my stop loss manually, when the price is going down
- For profit targets
• I would take a small amount at the bottom line of the rising wedge
• The rest of the amount I would take out at the support zones (See yellow zones)
DISCLAIMER: ALWAYS keep in mind! That this is NOT an investment advice, but an analysis. You can do whatever you want with this information, so trade at your own risks!
The next thing you see that the price is forming a double top in a resistance zone. If this pattern is completed, then you can expect the price is going to the bottom line of the rising wedge. After this you need to find out if the price is going to either break down or bounce from it. If it breaks down then you can expect that the price is going to move downwards.
- So for entry, you have to decide for yourself when to step in. Think about the risk/reward ratio
• Step in now (risky)
• When the price moves away from the resistance zone (pretty safe)
• When the double top pattern is completed (safe)
• When the price breaks down the rising wedge pattern (safe as hell)
- For stop loss it depends where you step in:
• You can put a stop loss at 0.009051, this is where the resistance zone ends
• But I prefer to trail my stop loss manually, when the price is going down
- For profit targets
• I would take a small amount at the bottom line of the rising wedge
• The rest of the amount I would take out at the support zones (See yellow zones)
DISCLAIMER: ALWAYS keep in mind! That this is NOT an investment advice, but an analysis. You can do whatever you want with this information, so trade at your own risks!