We can think of this as a mathematical equation defined as X=A+B+C, where (X) represents a reversal, (A) represents a breakout from the falling , (B) represents a breakout above the 50 in orange, and (C) represents a higher high, above the (Previous High.)
Looking at the four hour LTC chart, we can see that two of those conditions have occurred — a breakout above the descending , and a breakout above the 50 (in orange.) However, this doesn't confirm a trend reversal, so it would be wise to wait for a bit more evidence before going long. Given the fact that more resistance lies just above, at the previous high, this could end up being a failed breakout. In order for a trend reversal (X) to be confirmed, we need to see a breakout above the previous high (C.) Otherwise, the short-term downtrend is technically still intact. On the downside, a breakdown back into the falling , or below the 200 (in purple) would be a big win for the bears, and a precursor to further downside. Please follow, like, comment, and share on social media! This has been your fearless market guide, M.P.C. and I'm out!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***