LTC - Buying the Breakout
Litecoin has just broken out of its triangle formation - time to make some $$$
I will be waiting for the re-test to enter the trade - remember; when a market breaks out of its current trend, wait for the pullback.
Not only will this allow us to get in at a cheaper price, but we can also confirm this is in fact a breakout not a fake-out.
Look for Bullish candlestick momentum (big green candles and long wicks to the downside) in the area of the retest - previous resistance will become the new area of support.
We have some nice confirmation on the MACD graph which depicts falling bearish and increasing bullish pressure.
Volume is low and still has plenty of room to growth. The volume oscillator should rise in a rallying market - confirming the strength of the move.
If you look to the left side of the chart you will see how the last time LTC rallied for an extended period of time we saw the same pattern - volume started low and grew steadily to the upside in congruence with price action.
This is because buyers require increasing numbers and increasing enthusiasm in order to keep pushing prices higher.
You can use the same principle with volume to find reversal points - increasing price and decreasing volume suggests falling interest.
Let me know your thoughts!
I will be waiting for the re-test to enter the trade - remember; when a market breaks out of its current trend, wait for the pullback.
Not only will this allow us to get in at a cheaper price, but we can also confirm this is in fact a breakout not a fake-out.
Look for Bullish candlestick momentum (big green candles and long wicks to the downside) in the area of the retest - previous resistance will become the new area of support.
We have some nice confirmation on the MACD graph which depicts falling bearish and increasing bullish pressure.
Volume is low and still has plenty of room to growth. The volume oscillator should rise in a rallying market - confirming the strength of the move.
If you look to the left side of the chart you will see how the last time LTC rallied for an extended period of time we saw the same pattern - volume started low and grew steadily to the upside in congruence with price action.
This is because buyers require increasing numbers and increasing enthusiasm in order to keep pushing prices higher.
You can use the same principle with volume to find reversal points - increasing price and decreasing volume suggests falling interest.
Let me know your thoughts!
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