Hi Traders! Litecoin forecast update and follow up is here. On July 30th I shared this “Litecoin Short Term Forecast” 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!
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My idea here was as follows:
Litecoin H1(1 Hour) Chart Current Scenario
Based on the above-mentioned analysis my short term view was bullish here and I was expecting the price to move higher further. On the H1 chart, the price moved higher exactly as I expected it to, delivering a fantastic move to the upside.
As I always say we should wait for the facts to happen and take the right actions according to the hints that the market provides us. Here on the H4 chart, I mentioned that we had a bullish trend pattern and I was expecting the price to continue higher after correction. The correction that we were looking for happened with a bullish hidden divergence that had formed between the first low that has formed at 46.81 and the second low that has formed at 53.77 based on the MACD indicator, which we may consider as a fact provided by the market supporting the bullish view.
Litecoin H4(4 Hours) Chart
Also looking at the H1 chart we could see that this correction happened in the form of double wave down and then the price broke above the most recent downtrend line, retested it and then it moved higher. We may consider this as another fact supporting the bullish view. Also, the risk-reward ratio was good here (Before you get into a trade make sure to protect it using a stop loss set a target and keep a proper risk/reward ratio). The price then moved higher further providing a fantastic move to the upside until it was blocked by bearish divergence on both H1 and H4 charts. As I always suggest when you see contradictory signs like this, then you should consider managing your trade (cash out or partial cash out or trailing protections or partial hedge, etc.. depending on the strategy that you work with).
Litecoin H1(1 Hour) Chart
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
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 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,
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