Litecoin - Bear Continues Domination
Not financial advice. Do your own research. The ideas shared are the personal opinions of the BitDoctor team.
Let's face the facts, we're still in this bear market. I think we're close to finishing the bear cycle but we're definitely not done yet.
Let's get right down to business. First off, lets look at our clear pivots. .00689 as the low and .01014 as the high. We're retracing to the 38.2% level right now which naturally is going to have a reaction, however the spring hasn't been so convincing that we're going to continue moving up from here. Weire also sitting on a trendline and if we remember trendlines with bitcoin, we know that they've almost all been broken so I would expect this to break as well.
Let's discuss this trade setup. If we're in a bearish pennant, we have one more move to the upside (within the pennant structure) to go. That should be your entry. Don't take the trade now because it increases your risk if the formation is wrong. Your stop loss should be set right where the C wave is in the pennant because in order for the formation to be correct, we can not rise above it, otherwise it's completely invalidated.
Why should you not just short now? If the trade is wrong, and you keep your stop at .00928 then you risk more losses. It's best to just wait and let the triangle play out the way it's supposed to... and you'll increase your profit potential if you wait for it to rise a bit.
You can see the trading idea for yourself. The target is based on flagpole length. 100% of the flagpole move down takes us coincidentally to around the 78.6% retrace. I expect a bigger amount of support at the 61.8% golden zone so don't be ashamed taking profits there (around .0081). I'm not taking this trade but I will be watching it from the sidelines.
Let's face the facts, we're still in this bear market. I think we're close to finishing the bear cycle but we're definitely not done yet.
Let's get right down to business. First off, lets look at our clear pivots. .00689 as the low and .01014 as the high. We're retracing to the 38.2% level right now which naturally is going to have a reaction, however the spring hasn't been so convincing that we're going to continue moving up from here. Weire also sitting on a trendline and if we remember trendlines with bitcoin, we know that they've almost all been broken so I would expect this to break as well.
Let's discuss this trade setup. If we're in a bearish pennant, we have one more move to the upside (within the pennant structure) to go. That should be your entry. Don't take the trade now because it increases your risk if the formation is wrong. Your stop loss should be set right where the C wave is in the pennant because in order for the formation to be correct, we can not rise above it, otherwise it's completely invalidated.
Why should you not just short now? If the trade is wrong, and you keep your stop at .00928 then you risk more losses. It's best to just wait and let the triangle play out the way it's supposed to... and you'll increase your profit potential if you wait for it to rise a bit.
You can see the trading idea for yourself. The target is based on flagpole length. 100% of the flagpole move down takes us coincidentally to around the 78.6% retrace. I expect a bigger amount of support at the 61.8% golden zone so don't be ashamed taking profits there (around .0081). I'm not taking this trade but I will be watching it from the sidelines.
Trade active
Not much to update here as the short is playing out perfectly with the exception that the entry was never hit. It does surprise me a bit that the wedge didn't play out. There were some key indicators that this would go in full bear mode, though. First was the break of the rising trendline. Shortly thereafter there was a retest of the trendline and it failed like clockwork. It was almost too perfect.I will continue tracking this trade even though the entry was not hit perfectly.
CE - BitDoctor
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
CE - BitDoctor
Access our private indicators and join our Premium Room: bitdoctor.org
Beware of scams - I'll never DM you asking for funds.
Access our private indicators and join our Premium Room: bitdoctor.org
Beware of scams - I'll never DM you asking for funds.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.