LTC on the 4hr: Prepare to go blind after seeing this chart!
Please do not email me your optometry bill!
First off, please forgive the housekeeping. I am trying to explain a lot of data because I have not been posting as often as I used too, so what you are seeing is my chart notes unfiltered. I normally remove 2/3’s of the mess you are currently seeing, so I ask for a pass on this clutter!
LTC has moved very nicely since the February 8, 2019 bull run. We are seeing all the makings of another logical upside move.
This price formation on the 4hr is commonly referred to as a Rising Wedge pattern. We are in a Bullish trend cycle; this price action is good news for LTC as time suggests we continue to move in a structured pattern until the price narrows into the highest point of the rising wedge before traders decide to make the next move.
Technicals:
We have a new Orange Primary Dotted Trendline with 3 visible data points (confirmed).
Overhead resistance at both extended wicks denoted with the 2-red down arrows and small green overhead trendline. A common question I have been asked is whether you should chart a trend using closing/opening price or the expanded high/low wicks? That decision is a matter of the timeframe being analyzed and the type of trading you are considering. I am a swing trader looking for an expected 20-percent ROI, so using the expanded wicks provides me with a bigger picture of the timeframe being analyzed. Changing the upper resistance green trendline from the expanded wicks to the opening/closing region of the relative candles does not change the Rising Wedge Price action formation much but could change your perspective on entry and exit points. In the end, you will find what works best for your style of trading and continually refine that process.
Price support is noted by S1, S2, S3 which I based purely on the 4hr timeframe and price action with S1 being the most short-term significant price level for this chart and timeframe at, 48.xx – price support levels are substantiated by the Volume profile, that is why it’s there to confirm the analysis.
The Fib is drawn from the currently displayed chart high and displayed chart low for price support beyond the displayed green price supports and meant to display price support in the event of a catastrophic drop in price.
The volume profile (“VP”) is used as an aid to substantiate support and resistance for the displayed price action.
We are preparing to test the Orange Primary Bullish trendline (set Alert) to see if it holds and we continue the Bullish continuation. A failure to hold support on the Primary Trend could be catastrophic and we look to the fib levels for help in support levels.
I placed a green dotted overhead resistance trendline at $53.792 to demonstrate possible resistance (set Alert)
The volume has slowed, but nothing to be concerned about as we need to see a nice price distribution pattern with lower volume to expect the possible explosive volatility move, at some point in the Rising Wedge Pattern.
I placed 3 yellow vertical arrows to demonstrate how to calculate the probability of a bullish move when entering a particular price pattern, you choose the pattern, it's nearly all the same for each price formation. We can see it played out nicely, and if things are as bullish as they seem we could get some insight into how high LTC may go in the coming days/weeks. It should also be noted this works both ways and if the trend channel is broken the price could fall the length of the yellow double arrow references, or around 40.xx price level, a high-value node (“HVN”) seen in the VP.
I have referenced some overhead resistance price levels that should be considered if you're planning on shorting (I never make that recommendation), so set your alerts if you’re a Bear.
Outlook:
As previously stated, we are in a rising wedge pattern with future price action lending itself to high prices. BULLISH
The orange Primary dotted Trendline is intact at as close to 45-degrees as you can get. BULLISH
I am concerned with the H&S price pattern on the 4-hour that is currently developing, but only reference it as it is plainly obvious. Neutral
This incredible messy chart shows a classic bullish price pattern that is still consolidating – if we are following BTC’s lead it could be 4 to 5 days before the next Bull or Bear move. Right now, we must see if the primary trend will hold. If not, the landscape will change for LTC
Trading Idea:
A fool and his money are soon parted. For the bull, a small investment (SMALL) should be considered nearer the primary trend and then a LONG prayer to the crypto gods, aka the big money. There is time to dollar cost average into LTC if you have not entered the game. A reasonable guesstimate for the future price action could be considered by referencing the last yellow vertical arrow at the price level of about $70(ish).
If you’re a Bear you must concede to this Bullish price action, for now, and look to the overhead resistance for possible short entry points, while keeping a big eye on what BTC is doing. If you are feeling BTC is overextended, then you should be setting up your ideas for a short.
Conclusion:
I must buy a little here and a little there, always considering we could fall back to the $30 level. We are well ahead of my $50 price prediction for mid-year and in the crypto world, who knows what will happen. Always place a buy or sell order at a seemingly unrealistic buy level and unrealistic sell level. You do this because if we get price manipulation you can give yourself an opportunity to buy at a price you thought you would not get into and the same for selling. Make an order for a small amount at a price you have reviewed to be probable, but unlikely. You will be surprised how many times you will get into or out of a position on a large volatility move that will put a smile on your face.
If you appreciate Biff’s long-winded analysis and messy charting, hit that Thumbs up to give me some street cred. Follow me on twitter so we can talk about the weather and all things crypto. I enjoy my new twitter family and respond to all questions as soon as I can and generally enjoy chatting about anything.
As always, my best to you in this whacky world of crypto trading!
Biff
First off, please forgive the housekeeping. I am trying to explain a lot of data because I have not been posting as often as I used too, so what you are seeing is my chart notes unfiltered. I normally remove 2/3’s of the mess you are currently seeing, so I ask for a pass on this clutter!
LTC has moved very nicely since the February 8, 2019 bull run. We are seeing all the makings of another logical upside move.
This price formation on the 4hr is commonly referred to as a Rising Wedge pattern. We are in a Bullish trend cycle; this price action is good news for LTC as time suggests we continue to move in a structured pattern until the price narrows into the highest point of the rising wedge before traders decide to make the next move.
Technicals:
We have a new Orange Primary Dotted Trendline with 3 visible data points (confirmed).
Overhead resistance at both extended wicks denoted with the 2-red down arrows and small green overhead trendline. A common question I have been asked is whether you should chart a trend using closing/opening price or the expanded high/low wicks? That decision is a matter of the timeframe being analyzed and the type of trading you are considering. I am a swing trader looking for an expected 20-percent ROI, so using the expanded wicks provides me with a bigger picture of the timeframe being analyzed. Changing the upper resistance green trendline from the expanded wicks to the opening/closing region of the relative candles does not change the Rising Wedge Price action formation much but could change your perspective on entry and exit points. In the end, you will find what works best for your style of trading and continually refine that process.
Price support is noted by S1, S2, S3 which I based purely on the 4hr timeframe and price action with S1 being the most short-term significant price level for this chart and timeframe at, 48.xx – price support levels are substantiated by the Volume profile, that is why it’s there to confirm the analysis.
The Fib is drawn from the currently displayed chart high and displayed chart low for price support beyond the displayed green price supports and meant to display price support in the event of a catastrophic drop in price.
The volume profile (“VP”) is used as an aid to substantiate support and resistance for the displayed price action.
We are preparing to test the Orange Primary Bullish trendline (set Alert) to see if it holds and we continue the Bullish continuation. A failure to hold support on the Primary Trend could be catastrophic and we look to the fib levels for help in support levels.
I placed a green dotted overhead resistance trendline at $53.792 to demonstrate possible resistance (set Alert)
The volume has slowed, but nothing to be concerned about as we need to see a nice price distribution pattern with lower volume to expect the possible explosive volatility move, at some point in the Rising Wedge Pattern.
I placed 3 yellow vertical arrows to demonstrate how to calculate the probability of a bullish move when entering a particular price pattern, you choose the pattern, it's nearly all the same for each price formation. We can see it played out nicely, and if things are as bullish as they seem we could get some insight into how high LTC may go in the coming days/weeks. It should also be noted this works both ways and if the trend channel is broken the price could fall the length of the yellow double arrow references, or around 40.xx price level, a high-value node (“HVN”) seen in the VP.
I have referenced some overhead resistance price levels that should be considered if you're planning on shorting (I never make that recommendation), so set your alerts if you’re a Bear.
Outlook:
As previously stated, we are in a rising wedge pattern with future price action lending itself to high prices. BULLISH
The orange Primary dotted Trendline is intact at as close to 45-degrees as you can get. BULLISH
I am concerned with the H&S price pattern on the 4-hour that is currently developing, but only reference it as it is plainly obvious. Neutral
This incredible messy chart shows a classic bullish price pattern that is still consolidating – if we are following BTC’s lead it could be 4 to 5 days before the next Bull or Bear move. Right now, we must see if the primary trend will hold. If not, the landscape will change for LTC
Trading Idea:
A fool and his money are soon parted. For the bull, a small investment (SMALL) should be considered nearer the primary trend and then a LONG prayer to the crypto gods, aka the big money. There is time to dollar cost average into LTC if you have not entered the game. A reasonable guesstimate for the future price action could be considered by referencing the last yellow vertical arrow at the price level of about $70(ish).
If you’re a Bear you must concede to this Bullish price action, for now, and look to the overhead resistance for possible short entry points, while keeping a big eye on what BTC is doing. If you are feeling BTC is overextended, then you should be setting up your ideas for a short.
Conclusion:
I must buy a little here and a little there, always considering we could fall back to the $30 level. We are well ahead of my $50 price prediction for mid-year and in the crypto world, who knows what will happen. Always place a buy or sell order at a seemingly unrealistic buy level and unrealistic sell level. You do this because if we get price manipulation you can give yourself an opportunity to buy at a price you thought you would not get into and the same for selling. Make an order for a small amount at a price you have reviewed to be probable, but unlikely. You will be surprised how many times you will get into or out of a position on a large volatility move that will put a smile on your face.
If you appreciate Biff’s long-winded analysis and messy charting, hit that Thumbs up to give me some street cred. Follow me on twitter so we can talk about the weather and all things crypto. I enjoy my new twitter family and respond to all questions as soon as I can and generally enjoy chatting about anything.
As always, my best to you in this whacky world of crypto trading!
Biff
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