Litecoin (LTC) Pay Day - Relative Strength is Real!
The Litecoin paid off today and its relative strength to BTC of late is showing true!
In the video below I go into full detail of LTC price action, the trade that was made and why.
Setup and Outlook
As discussed previously, the entry was when LTC bounced off the 200 day moving average (blue line) the first time with a reversal candle (circled in gold).
That completed my bullish u-turn entry pattern, which you can learn in video #2 of the ScaredyCatGuide to Investing in Cryptocurrency course
So with that said, we had a profit target of 190-191 (the most recent top) and an entry of 130. The stop loss was 100, the low of the entry candle.
Thus, giving us the minimum 2 to 1 risk reward ratio you should have on any trade/investment.
The target was reached in the late hours of night (for EST people) and my order executed.
This trade was an addition I made to my core position with a goal of picking up some $$$. As you can see it took over a week to develop and was made off the daily chart.
This is position trading or active investing, if you will. There is no need to day trade unless it is something you want to do.
Relative Strength
Granted, LTC wiggled back and forth a bit before finally moving higher.
However there are two positive things it did that BTC did not...
- Close below the 200 day moving average
- Make a lower low after the initial bounce.
In layman's terms: it was acting better than BTC; and now it is that made a push higher and brokeout of its descending channel on the daily chart.
Relative Strength is Real!
See the complete breakdown in the video:
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Best Regards,
Disclaimer: All info in this post is my opinion and for educational use.
Free e-book: ScaredyCatGuide to Knowing What the Heck Bitcoin Is
Best Regards,
Disclaimer: All info in this post is my opinion and for educational use.
This is great information, I beleive that people in the crypto community will start to see the value in litecoin very soon! I am holding for the long term. Great analysis!
the BULL run has started. litecoin was up 30% i last time i checked earlier
Bull flag has been confirmed a few days ago at LTC/BTC. Litecoin will lead this bull run. However, I expect it to test around 170 before getting above 220. Last 4 years, 1Q was the best time to buy crypto. Looks like is just another year in the office.
That's right! Well said my friend!
Great post, I have upvoted and resteemed. I moved out of my Bitcoin position and into LTC a while ago as was concerned about the rising cost of Bitcoin network. Do you see LTC continuing to be the silver to Bitcoins gold or is it now becoming a competitor?
I like the things LTC team are doing, but in the end it's all a matter of opinion. That is why diversification is important. I have some BTC, LTC, ETH, and so on.
the bulls are out in force
Good that you caught it...and that you sold. The reasons I've read for the pump seem too flimsy to hold up LTC permanently.
Yeah, I was trading around my core position so gotta book profits when they are there otherwise all of it because a HODL!
Lite coin will prove doubters wrong. I predicted it and I'm predicting it.
This is awesome I love watching LTC do well mostly because I have only like 2 LTC but I HODL them!
@scaredycatguide have you looked at CAPPS ? I might buy it, but i would love to hear your opinion on it
Have not heard of it, not coming up on my tradingview charts. Looks like its only on cryptopia, which I am not on. Sadly, I got nothing for ya on this one. :-(
From what i've heard they had good partnerships with some top cpu making company, i think it was Nvidia, but don't quote me on that xD
good