Hi Traders! Litecoin short term forecast update and follow up is here. On February 15th 2023 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 Home Trader Club. Spoiler alert – free memberships are available!
My Idea
On the H1 chart, we had a bullish divergence that formed between the first low formed on 9th February 2023 and the second low formed on 13th February 2023 based on the MACD indicator which we may consider as evidence of bullish pressure. In addition to this, 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. we may consider this as other evidence of bullish pressure. Also, the price has broken above the most recent downtrend line and is currently holding above it, we may consider this as another evidence of bullish pressure. Also, the ADX indicator gave a bullish signal here as well, at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads a value over 25, we may consider this as yet another evidence of bullish pressure. So based on all this, my short-term view remains bullish here and I expect the price to move higher further until the strong support zone (marked in green) shown in the image below holds.
Based on the above-mentioned analysis my short-term view was bullish here and I was expecting the price to move higher further in the short term until the strong support zone holds. The price action followed my analysis exactly as I expected it to. The price which was moving lower reached the strong support zone, respected it and bounced higher from this zone. Also, the price which was moving lower created a bullish divergence that formed between the first low formed on 9th February 2023 and the second low formed on 13th February 2023 based on the MACD indicator. The price then moved higher and broke above the most recent downtrend line, we may consider these as facts provided by the market supporting the bullish view. Then as you can see in the image below how the price moved higher after that and provided a nice move to the upside!
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
As traders we always have two choices, the first one is to fall in love with our analysis and try to convince the market and expect the price to move in the direction per our wish. The second one is to follow the facts that the market provides us and make the right actions according to that. As you know the first option won’t help us and as you can see in the example above what happened when we followed the facts that the market hinted to us and took the right action according to that.
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If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Arvinth Akash
Home Trader Club Team.
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