Here we have LTC/BTC on the 1D chart.
Price recently broke a channel at 0.00900000, and also tested a side-ward simultaneously. Price has moved nicely since the breakout, and now I am expecting a down move to the target level of 0.00500000.
Our target is based on a measure move of previous impulse leg and the successful breakout of the channel. Knowing this, we now have a reliable support turned resistance ceiling, and a good place to short with small risk.
This trade could play out in 2 ways, see the scenarios below:
-Price continues to drop in the same fashion it has been, and achieve target level at 0.00500000.
-Price drops, but then has a correction before the down move (The preferred scenario as a correction will give us an continuation entry) and then achieves it's target move later.
Do bare in mind that price has dropped a lot already. For an ideal trade we realistically want to see a correction.
I will be updating this trade as it progresses.
I post a lot of trades like these, check them out if you want :)