Litecoin Short Term Forecast Follow Up And Update

Hi Traders! Litecoin short term forecast follow up and update is here. On October 27th I shared this “Litecoin Technical Analysis And Short Term Forecast” post in our blog. 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

On the H4 chart, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. In addition to this, we could see that the price which was moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. Also, the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as another evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening, also we had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout these strong resistance zones are acting as two strong support zones for us. So based on all this, until both these strong support zones shown in the image below(marked in green) hold my short term view remains bullish here and I expect the price to move higher further after pullbacks.

 

 

 

Litecoin H4(4 Hours) Chart Current Scenario

Based on the above-mentioned analysis my short term view was bullish in Litecoin and I was expecting the price to move higher further until the two strong support zones hold. The price action followed my analysis here exactly as I expected it to. After the bullish trend pattern, we had a pullback with the price reaching the first strong support zone, respected it and bounced higher from this zone delivering a wonderful move to the upside.

 

 

On the H1 chart, the market provided us with various facts supporting the bullish view. After the bullish trend pattern on the H4 chart, we had a pullback on the H1 chart with the price creating a bullish hidden divergence between the first low that has formed at 52.08 and the second low that has formed at 55.72 based on the histogram of MACD indicator. Followed by a continuing bullish divergence between the first low that has formed at 55.72 and the second low that has formed at 53.46 based on the histogram of the MACD indicator, which we may consider as facts supporting the bullish view. The price then moved higher and broke above the most recent downtrend line and retested it, which we may consider as another fact supporting the bullish view. Then as you can see in the image below how the price moved higher after that and provided a wonderful 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.

For similar trade ideas and much more I invite you to

 

Happy Trading!

Arvinth Akash
Traders Academy Club Team.

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