Hi friends! Welcome to this update analysis on LITECOIN! Let's get right to it. Looking at the four hour chart, you can see that LTC fell from the bear flag that I published on my last analysis, but the downside target of 137.50 has not yet been reached. With two formations (the triangle and the bear flag) yielding full potential retracements down to the same level (137.50,) it is a compelling situation that suggests further downside. However, patterns don't always rally or correct to their full potential. Yesterday's low, could very well be the lowest point of this move.
As you can see, LTC appears to be forming a nice bull flag, which (when coupled with the consolidation in the bear flag on 7th and 8th) could also be forming the right shoulder of an inverse head and shoulders pattern. The only problem that I see with this thesis, is that Bitcoin has created another bear flag, while LTC printed a bull flag. Furthermore, BTC has already started to break down from it's newly formed bear flag, but the downside appears to be catching immediate support on the pink trendline (BTC chart.)
As I'm writing this, BTC is printing a more severe breakdown from it's bear flag, and the potential bull flag on this chart, is really pushing into the bottom of the flag, so we may see a breakdown here. Regardless, this is still a bull flag, until it fails and breaks down. Given the current look on BTC, I'm starting to think that this bull flag could fail, but what I "think" is irrelevant. I read the charts, and this chart currently says bull flag.
You can see that resistance is falling into the bull flag, in the form of the 20 EMA (in blue) and then the 50 EMA (in orange.) The 50 EMA is also converging with the 61.8% retrace, so that level could be particularly resistive, if LTC makes it's way up there. On the MACD, we're working over a bullish crossover, but the momentum is beginning to flatten, as the volume shrinks, which is typical to see during flag consolidations.
Overall, we're in a bull flag, that has immediate resistance overhead, while Bitcoin is in the process of breaking down from a bear flag, with support just below. In LTC, we need to watch this flag, and wait for the breakout, to determine real guidance on the forward price action. The downside target was not reached, so if this flag breaks to the downside, the 137.50 handle could be the final stop. A breakout to the upside, combined with a break above the 618, would put a retest of the 227.60 level in play.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
The anatomy of Buyers Paralysis and FOMOitis.
You're waiting for it to go lower so you can buy because you're too scared to short it. It then goes lower, but now your emotions kick in, now you're too scared to buy at this lower price because you think you're seeing signals that it can go even lower (bear raid/market). So you don't pull the trigger. You wake up the next morning and... damn!... it's up 11%, and you missed out!
That should be the end of it right? ... you're gonna wait for a pull back right?... wrong!
Many of you not only have Buyers Paralysis, you also suffer from FOMOitis. You rush to buy into this 11% pop, why?... because you're dumb like that!!
So, as soon as you place the market order, guess what happens? that's right [angry face: that exchange has it out for you, it knows it's you who placed that order, and doesn't want you to win, LOL!!!] it immediately sells down into a blow off top, right dead smack into that candle you bought. That's right... it appears you bought the top for the day. 11% becomes 6% becomes 3%, until that candle is now red, the ole' Shooting Star candle is now -2%. You're at a loss and now there's that other anxious feeling coming over you. It's that feeling of a losing position, after all who want's to lose money right?... so you sell at a loss -3%, you say to yourself, "heck my stop loss would have done the same thing, ...so what the heck". Well, you HOPE your stop loss would have saved you, as these notorious unregulated exchanges are making a killing on non remedy Slippage. Nevertheless you loss Bitcoin or cash.
...ha?, Uh oh... Wait a minute!!!... WTF!!!... it's going up again. What the hell man!!... it's like the f'king exchange knows me!!...
That's right. that candle just got bought up, and recovered by a liquidity bot.
The fact is, the exchange does know you, well, not in the personal sense, it knows that you're a FOMO'er in the order book, it's designed to know this. You're to naive to realize that the majority of the buys/sells and volume you see are being performed by liquidity bots, but that's another lesson for a different day. The point is... YOU ALLOWED YOURSELF to be manipulated right out of your Bitcoin.
@mrcarneasada, It's all just learning experience. Try to stay positive.... A lot of people are hard on themselves and give up trading before they even have a chance to get good at it. I'm not a good trader yet but I'm determined to get better.
Bowebeast
⋅
Thank you Magic. Been following you for over a month now, just never had a login to leave a comment. Love your daily posts on LTC and BTC. Keep it up.
@MagicPoopCannon, Curious for an update ... strange beautiful times!
Williebeamin
⋅
Don Poopy, as a long time follower and not to toot my own horn but one of ur first on Tradinview, may I ask why do you pair LTC to USD instead of BTC? would love for these TAs to help me increase my crypto... F*ck FIAT ! :)
@Williebeamin, For me, if I am making BTC hand over fist, tons and tons of BTC...but BTC is falling, falling, falling to 2,000 USD....what's the point? I like to see my results in USD. The whole world watches USD. Gold, Oil, ...everything, everybody. It is a bit early to just write-off USD as a has-been don't you think? I still buy my groceries in USD :) I do get your long-term sentiment, but for now, I really like to know where I stand- and when I trade out, I prefer to trade out into USDT. (I know you are really wanting an answer from Poopy... I just threw in my 2 cents (USD)
You're waiting for it to go lower so you can buy because you're too scared to short it. It then goes lower, but now your emotions kick in, now you're too scared to buy at this lower price because you think you're seeing signals that it can go even lower (bear raid/market). So you don't pull the trigger. You wake up the next morning and... damn!... it's up 11%, and you missed out!
That should be the end of it right? ... you're gonna wait for a pull back right?... wrong!
Many of you not only have Buyers Paralysis, you also suffer from FOMOitis. You rush to buy into this 11% pop, why?... because you're dumb like that!!
So, as soon as you place the market order, guess what happens? that's right [angry face: that exchange has it out for you, it knows it's you who placed that order, and doesn't want you to win, LOL!!!] it immediately sells down into a blow off top, right dead smack into that candle you bought. That's right... it appears you bought the top for the day. 11% becomes 6% becomes 3%, until that candle is now red, the ole' Shooting Star candle is now -2%. You're at a loss and now there's that other anxious feeling coming over you. It's that feeling of a losing position, after all who want's to lose money right?... so you sell at a loss -3%, you say to yourself, "heck my stop loss would have done the same thing, ...so what the heck". Well, you HOPE your stop loss would have saved you, as these notorious unregulated exchanges are making a killing on non remedy Slippage. Nevertheless you loss Bitcoin or cash.
...ha?, Uh oh... Wait a minute!!!... WTF!!!... it's going up again. What the hell man!!... it's like the f'king exchange knows me!!...
That's right. that candle just got bought up, and recovered by a liquidity bot.
The fact is, the exchange does know you, well, not in the personal sense, it knows that you're a FOMO'er in the order book, it's designed to know this. You're to naive to realize that the majority of the buys/sells and volume you see are being performed by liquidity bots, but that's another lesson for a different day. The point is... YOU ALLOWED YOURSELF to be manipulated right out of your Bitcoin.