Looking for order blocks that might act as support and resistance for Litecoin LTCUSD on the daily time frame.
To do this we will use our Order Block Mapping indicator which automatically plots bullish (green) and bearish (red) order blocks that might act as support and resistance.
First, let’s look at the previous consolidation zone as highlighted on the chart which price just attempted to breakout of and is now retesting. Assuming a break to the upside, we’ll want to look for potential resistance levels above.
Above the current price we have bearish order blocks at R1 - R4.
At R1 and at the cluster at R2 we have some logical spots to look for reversals in the short term, and at R3 and R4 we have some potential longer term targets if R1 and R2 can’t hold.
In terms of supports, we have the bullish order blocks formed at S1, S2 and S3.
Due to the way we saw a gap up in 2017, it is rational to look for S1 to hold for a second time or for S2 to hold if S1 cannot, as S3 represents a drastic drop in price all the way back to 2016 levels.
That said, since testing the all time high and breaking back down to the 2016 low both represent extreme price moves, the focus should be on looking for reversals or continuation at S1 and R1 respectively depending on the next direction of the price.
To do this we will use our Order Block Mapping indicator which automatically plots bullish (green) and bearish (red) order blocks that might act as support and resistance.
First, let’s look at the previous consolidation zone as highlighted on the chart which price just attempted to breakout of and is now retesting. Assuming a break to the upside, we’ll want to look for potential resistance levels above.
Above the current price we have bearish order blocks at R1 - R4.
At R1 and at the cluster at R2 we have some logical spots to look for reversals in the short term, and at R3 and R4 we have some potential longer term targets if R1 and R2 can’t hold.
In terms of supports, we have the bullish order blocks formed at S1, S2 and S3.
Due to the way we saw a gap up in 2017, it is rational to look for S1 to hold for a second time or for S2 to hold if S1 cannot, as S3 represents a drastic drop in price all the way back to 2016 levels.
That said, since testing the all time high and breaking back down to the 2016 low both represent extreme price moves, the focus should be on looking for reversals or continuation at S1 and R1 respectively depending on the next direction of the price.
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.
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.