Litecoin - bulls testing for a reversal

BITSTAMP:LTCUSD   Litecoin / U.S. Dollar
I've redrawn my supports and resistance on litecoin:

- Red line is drawn on daily
- Orange line is from four hour
- Yellow line is from hourly
- Green is from 30M

So essentially the darker the line, the more potent it is.

Additionally I've used RSI , MACD and EMA lines to determine velocity based on previous candles.

I've drawn the bearish channel (black dotted line) that has been ongoing for the past couple of days and as you can see, very close to the upper channel are three resistance lines.

As a trader, we should be looking at riding the trend (at the moment, bearish ), but at the same time preparing for any breakout. To be safe, I have marked a point outside the channel, should the price break the three resistances + bearish channel . I've spaced it quite big to make sure it's not a fake out. my take profit level would be 194 and 235.

I have also marked a short position should the resistance and the channel hold. For take profit levels I would aim for a level within the channel, just above the lower channel


Very good stuff. Thanks for this. 2 things, 1) why the 194? is that a fib level? and 2) how are you using volume for help determining your levels?
@cprime, Hi there thanks for the idea about volume, I don't usually use it for analysis (mainly because I don't know how to incorporate it) but I surely would like to add this to my arsenal! To address your questions though: 1. 194 is just a simple trend line from the 4h resolution, no fib levels here and 2. no I'm not using volumes at all, did you have any idea on how to use it for levels?
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