Hello fellow traders. Updating the chart from the last three Litecoin charts I posted on March 7th, March 9th, and March 10th. As you can see prices did bounce lower off the resistance area I marked on those charts and Litecoin did retest that area of resistance before dropping in price. I have left the two white lines on the chart showing a measured move. The second white line was just moved over to the high that was the final test of the resistance area before dropping in price. The two white lines are only used to gauge the potential distance of the next move to a price area.
This chart does have a second down trend line added to it. It is the dashed trend line on the chart. It is showing the channel Litecoin is now in while it finds lower prices. The lower two blue horizontal lines on the chart show an area of support and resistance that Litecoin is currently using as resistance. I did move the potential target area (yellow circle) more rightward on the chart. It was further to the left on the prior charts. I was anticipating a faster drop in prices. As you can see on this chart, I have left the two yellow trend lines that are showing a massive triangle. If I were a betting man, I would say it is very likely Litecoin will follow the channel down to the lower yellow trend line of the triangle. Let's wait and see what happens. This is not a recommendation for a trade. This is for educational purposes only.
This chart does have a second down trend line added to it. It is the dashed trend line on the chart. It is showing the channel Litecoin is now in while it finds lower prices. The lower two blue horizontal lines on the chart show an area of support and resistance that Litecoin is currently using as resistance. I did move the potential target area (yellow circle) more rightward on the chart. It was further to the left on the prior charts. I was anticipating a faster drop in prices. As you can see on this chart, I have left the two yellow trend lines that are showing a massive triangle. If I were a betting man, I would say it is very likely Litecoin will follow the channel down to the lower yellow trend line of the triangle. Let's wait and see what happens. This is not a recommendation for a trade. This is for educational purposes only.
Comment:
Litecoin did get pushed lower form the resistance area marked on the chart with the two lower blue lines. Litecoin price also ran into the 50 bar moving average in that area.
Trade closed: target reached:
Measured move target was hit. Price took a good bounce up at that price area. Will wait and see if price makes it to the yellow trend line where the yellow circle is.
Comment:
Looks like price found the yellow circle I had on the chart!