Hi Traders! Litecoin technical analysis and short term forecast post is here. We do our analysis on the MetaTrader4 platform (MT4), some very interesting, useful tips and hacks about the MT4 platform could be found here. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on Litecoin in order to find possible trading opportunities. 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! Let’s start our analysis now from the highest timeframe which will be the daily chart here.
Litecoin D1(Daily) Chart Analysis – Resistance Breakout, No Opposite Signs, ADX Indicator
On the daily chart, we had a strong resistance zone, the price moved higher and has currently broken above this zone and is holding above it, we may consider this as evidence of bullish pressure. Currently it looks like this bullish rally is about to continue itself as there are no signs opposing this bullish view. At the moment, it looks like a correction is happening. In addition to this, the ADX indicator gave a bullish signal here, at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. So everything looks good here for the bulls and we may now move down to lower timeframe and look for evidences supporting this short term bullish view.
Litecoin H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Higher Highs, Two Strong Support Zones
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 has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. 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 value over 25, we may consider this as yet another evidence of bullish pressure. 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.
Technical Analysis & Forecast Summary
Litecoin D1(Daily) Chart Analysis
- Resistance Breakout, No Opposite Signs, ADX Indicator
Litecoin H4(4 Hours) Chart Analysis
- Heikin Ashi Candles, Higher Highs, Two Strong Support Zones
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short term buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team
