Behold…more shilling for Litecoin.
I picked up a copy of Chart Patterns After The Buy by Thomas Bulkowski a few weeks ago and I highly recommend it to anyone trading or investing on their own. It goes over 26 of the most prevalent chart patterns identified in thousands of charts researched and gives odds of which way they went. I spotted ‘The Big M’ pattern from the first chapter of the book on the LTC/BTC chart. Quick breakdown –
-The Big M is made up of a parabolic rise from launch price to A, correction to B, and another push to C at or below A’s top. It differs from a double top in that its sides are taller and sharper, whereas double tops are sort of a rolling event.
-When the C leg breaches B’s point it results in a return to the launch price or lower. Make note of B because that’s the breakout point for going long.
-Expect a pullback once D is reached, followed by consolidation between D and the breakout price
-Safe to go long once price breaks out at B. Take some profit at C since 1 in 3 trades fails there.
-If the trade fails at C and breaks down, go long again at the breakout line. The average return for that sequence is 47%.
No shaking chicken bones or candlestick reading…just odds backed up by a ton of research. I plan to take this trade on a 4h retrace after the price breaks out past B. Not financial advice. Good luck.
I picked up a copy of Chart Patterns After The Buy by Thomas Bulkowski a few weeks ago and I highly recommend it to anyone trading or investing on their own. It goes over 26 of the most prevalent chart patterns identified in thousands of charts researched and gives odds of which way they went. I spotted ‘The Big M’ pattern from the first chapter of the book on the LTC/BTC chart. Quick breakdown –
-The Big M is made up of a parabolic rise from launch price to A, correction to B, and another push to C at or below A’s top. It differs from a double top in that its sides are taller and sharper, whereas double tops are sort of a rolling event.
-When the C leg breaches B’s point it results in a return to the launch price or lower. Make note of B because that’s the breakout point for going long.
-Expect a pullback once D is reached, followed by consolidation between D and the breakout price
-Safe to go long once price breaks out at B. Take some profit at C since 1 in 3 trades fails there.
-If the trade fails at C and breaks down, go long again at the breakout line. The average return for that sequence is 47%.
No shaking chicken bones or candlestick reading…just odds backed up by a ton of research. I plan to take this trade on a 4h retrace after the price breaks out past B. Not financial advice. Good luck.