Litecoin How to Trade

It looks like 200.00 level is good for fixing profit. If so, we should be ready to see a correction movement from this level to one of the possible support zones. The market is overbought on different time frames. RSI is going to reverse in the overbought zone and it will give us a bearish signal. MACD is bullish but if the market stay below 200.00, we'll also get a bearish signal from this indicator. The market made a great upward movement and it must be corrected. We need new buy opportunities in order to join to this strong uptrend on good levels. If the market starts falling, we must be ready to buy based on confirmed reversal signals. The 4H chart gives us 3 reversal zones formed by SMA20, SMA50, SMA100 and support levels. These zones will be able to stop and reverse the falling market. The zone formed by SMA100 and 100.00 support level will be the perfect for buying. From the daily chart this zone is supported by SMA20. It's also a good variant to build long positions on different levels. You can keep the previous long positions and add more trade volume based on new reversal signals. Other variant can be to fix the part of profit from the long positions at 200.00 level and open new trades based on new trading signals. Which variant to use, it depends on your goals and trading plans for this market.

P.S. Don't forget to make your own research before doing something with your open trades.

評論:

The price breaks 200.00 level by a strong bullish candle. Probably 250.00 level will be reached very quickly )