Hi Traders! Litecoin forecast update and follow up is here. On March 4th I shared this “Liteccoin Forecast And Technical Analysis” post in Trading View. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
My Idea
My idea here was “On the H1 chart, the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows which we may consider as evidence of bullish pressure. Generally, after a bullish trend pattern we may expect corrections and then further continuation higher. We also had a strong resistance zone that had formed which the price has broken above and currently, this strong resistance zone is acting as a strong support zone for us. So based on all this, my view is bullish here and I expect the price to move higher further from the current zone. Alternatively, if the price moves lower then the next area to look for bullish setups with bullish evidences would be the strong support zone (marked in blue) shown in the image below”.
Litecoin H1(1 Hour) Chart Current Scenario
Based on the above-mentioned analysis my view was bullish here and I was expecting the price to move higher until the strong support zone holds. the price action followed my analysis exactly as I expected it to and moved higher as per scenario 2. The facts were supporting the bullish view here, the price which was moving higher created a bullish trend pattern in the form of three higher highs, higher lows. As per the book scenario, generally after a bullish trend pattern, we may expect corrections and then further continuation higher. The correction that we were looking for happened and the price which was moving lower reached the strong support zone and respected it. Most importantly there were no signs opposing this bullish view and then the price bounced higher from this support zone providing a fantastic move to the upside.
So, traders, this is why I wanted to show this example to help you understand how important it is to follow the facts. The facts were supporting the bullish view here and there were no signs against it. When the facts do happen as we expected you can see how the price perfectly moved as per the plan. Because these are the kind of hints the market provides us at majority of the times and it’s our obligation as traders to be able to listen to these things that the market tells us and we should try to make the right actions.
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To your success,
Vladimir Ribakov
Certified Financial Technician
