[GUIDE] How to get a GREAT Entry on LTCIn this technical analysis I will walk you through the current price action on LTC and show you potential areas where you can enter either a long or a short position. I will try to keep it easy to read and to-the-point.
The most important thing to consider now is where you would enter LTC. Because it is trading neither near support nor resistance, I don't consider the current price a good entry.
Since LTC is now trading at levels where we haven't seen price action recently, I decided to use the price zones from a longer time ago. Often, they still hold value and can give us an indication which areas are important for an asset.
Also, consider how crazy that top horizontal resistance actually is. The price was rising in basically uncharted territory, making it very difficult location to apply TA. The trick that I applied was going back all the way until April 2018 and it actually showed perfect predictive power as the price bounced EXACTLY at that level, just like it did before.
That is the power of TA.
What I suggest is to do either of the following. In the bullish scenario I suggest you wait for a retracement, for instance to the ~$150 level and enter with a long. You would try to monetize the scenario that it would bounce on the horizontal level and catch a local bottom there in an otherwise uptrending asset.
For the bearish scenario you could try to wait for the price to get a bit higher, near the $175 resistance again. Then, you bet on a reversal with a short position. Hoping that the previous resistance indicates a great potential place for a reversal again.
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- Trading Guru
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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!
