Here we have LTC/USD on the 1H chart - Looking for short term trades...
A little indecisive at the moment!
Observations:
1) Bearish - Descending triangle formed by the latest two highs towards the strong 200$ support/resistance line in black. Price has previously bounced from this level.
However, a break to the downside will confirm the descending triangle, and LTC will likely drop to the 61.8% fib extension level as indicated by the red arrows.
2) Bullish - RSI level around 40-45 - This level of RSI has previously proven as support marked by the yellow circles, followed by a solid move upwards.
Taking this into account, we could see a bullish move to the upside and exit the descending triangle, confirming an upwards trend, as indicated by the green arrow.
3) EMAs (20, 50, 100) - The EMAs are very close at the moment, an EMA crossing would add certainty to either of the moves outlined above.
Conclusion:
Wait for a move with volume (which is very low at the moment) in either direction before entering your position.
Take profits gradually at fib retracement levels (not shown on the chart), and move your stop loss up/down accordingly.
Fortune favors the bold - trade courageously.
A little indecisive at the moment!
Observations:
1) Bearish - Descending triangle formed by the latest two highs towards the strong 200$ support/resistance line in black. Price has previously bounced from this level.
However, a break to the downside will confirm the descending triangle, and LTC will likely drop to the 61.8% fib extension level as indicated by the red arrows.
2) Bullish - RSI level around 40-45 - This level of RSI has previously proven as support marked by the yellow circles, followed by a solid move upwards.
Taking this into account, we could see a bullish move to the upside and exit the descending triangle, confirming an upwards trend, as indicated by the green arrow.
3) EMAs (20, 50, 100) - The EMAs are very close at the moment, an EMA crossing would add certainty to either of the moves outlined above.
Conclusion:
Wait for a move with volume (which is very low at the moment) in either direction before entering your position.
Take profits gradually at fib retracement levels (not shown on the chart), and move your stop loss up/down accordingly.
Fortune favors the bold - trade courageously.