As many of these coins do not have long histories it is difficult to get a general idea of where we are in different time frames. So we must look to other similar similar coins to gain a gauge of where we are, and moreover where we are going. The chart above, which is based on my interpretation, shows we finished a complete cycle in a 4 hour bar, monthly graph. But we just completed the 2nd wave of a longer term trend (labeled II). As EW is based on fractals, meaning within any wave there are sub waves, time frame is critical when analyzing. A the trend in a 3 month cycle may be different then the trend in a 2 year cycle. We must keep this in mind when analyzing trades as to not miss the forest for the trees. When using EW you must first look at what time time frame are you investing, and what time frame (cycle) are we in. This is a powerful tool and critical when analyzing graphs.
Well for LTC there is only limited data so we have to use a comparison. If I look at the other two primary currencies BTC and ETH I noticed a similar pattern with ETH after it's launch date. Even the time frame is similar in the first 3 months. Since the first 3 months of being traded, ETH has continued on an upwards trend and completed a major cycle only just months ago. (1 year after being released I believe). But it was short lived and we have since then corrected and are consolidating for another move up. This is the cycle I believe LTC is entering in a similar time frame. labeled I, II, III on the chart. In my opinion based on ETH this should happen in the next couple of months, even though in the current time frame the cycle has completed and we are looking for a consolidation for a move higher. However it does NOT need to consolidate much, as we have seen with both BTC and ETC and their historical graphs.
As this is one of the base currencies, I believe LTC is setting up for a new leg up and we have marked our current target price. Markets rarely work out the way we put them on graphs, so dips and blips should be expected, but if you have this in your wallet as a long term holding I would be looking to add to the position on any breakout. Again you must have a trading plan in place as trading blindly leads to losses. Impulse trades are the reason why EW and Fibb works, and the reason you should remove noise via news and other twitter feeds from you plan.
The Chinese news appears to have been nothing more than a buying and opportunity for a trader with a plan and system. If you were trading blindly, panic'd and sold coins off as many did, you woke up this morning only to realize some coins have moved higher since you sold. We specifically posted about this yesterday using a holding of ours PAY, and how we were handling it.
Have a system, and a plan for selloffs breakout etc. It's not just about money management, it's about trading management as well. Good luck in the pits today everyone and thank you for reading!!!
PS> The NEWS BRIEF : The news from China may have had a minimal impact on the market overall if any, but trend traders took advantage of it. What has changed since today and yesterday to make coins start to recover? Did they role back regulations? If the news was so bad to create a 25-30% selloff in NEO why is it up 11% today and on what news? Trends are the most important tool of any trader. Trade the trend before trading the news! Trade the news you Lose as many did this morning. FYI for you that read this far, PAY looks like a great consolidation trade today!
Well for LTC there is only limited data so we have to use a comparison. If I look at the other two primary currencies BTC and ETH I noticed a similar pattern with ETH after it's launch date. Even the time frame is similar in the first 3 months. Since the first 3 months of being traded, ETH has continued on an upwards trend and completed a major cycle only just months ago. (1 year after being released I believe). But it was short lived and we have since then corrected and are consolidating for another move up. This is the cycle I believe LTC is entering in a similar time frame. labeled I, II, III on the chart. In my opinion based on ETH this should happen in the next couple of months, even though in the current time frame the cycle has completed and we are looking for a consolidation for a move higher. However it does NOT need to consolidate much, as we have seen with both BTC and ETC and their historical graphs.
As this is one of the base currencies, I believe LTC is setting up for a new leg up and we have marked our current target price. Markets rarely work out the way we put them on graphs, so dips and blips should be expected, but if you have this in your wallet as a long term holding I would be looking to add to the position on any breakout. Again you must have a trading plan in place as trading blindly leads to losses. Impulse trades are the reason why EW and Fibb works, and the reason you should remove noise via news and other twitter feeds from you plan.
The Chinese news appears to have been nothing more than a buying and opportunity for a trader with a plan and system. If you were trading blindly, panic'd and sold coins off as many did, you woke up this morning only to realize some coins have moved higher since you sold. We specifically posted about this yesterday using a holding of ours PAY, and how we were handling it.
PS> The NEWS BRIEF : The news from China may have had a minimal impact on the market overall if any, but trend traders took advantage of it. What has changed since today and yesterday to make coins start to recover? Did they role back regulations? If the news was so bad to create a 25-30% selloff in NEO why is it up 11% today and on what news? Trends are the most important tool of any trader. Trade the trend before trading the news! Trade the news you Lose as many did this morning. FYI for you that read this far, PAY looks like a great consolidation trade today!
Komen:
I do not provide stop limits, the general rule is pick a percentage loss YOU are willing to take and that's where your stop loss should be.
