Let's think about possible price movements of Litecoin using Ichimoku indicator and levels. We can see that price is going to pass through the kumo. ADX line of DMI indicator rises to 20 level and it can be a confirmation of a new down movement. If price breaks 44.00 support level, we'll be able to see falling to the support zone between 35.00 and 32.00 levels. This zone will be interesting for opening long trades with stop orders below 32.00 support level and profit target at 55.00 resistance level. Also, we have one more variant. If price returns above the kumo and breaks the downtrend line, we'll have confirmation of possible up movement and a new buy signal with profit target at the resistance level.
Have you charted LTC against CNY? It seems to show a different set of trends and they are driving far more volume than USD is right now. I am not an experienced trader, but against the CNY it looks far more like a pennant, a strong price jump preceding it, an ascending pennant with a possible break upwards.
I'd love to hear your opinion on that, or why you think that would be incorrect, as well (I have been studying as well as I can, but I would appreciate any input on why you would move to a different conclusion).
Inct73
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LTC has passed the downtrend line upwards. Is this an immediate buy signal or should you wait for it to pass the line even further?
ZaZa_
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I don't think it is going to up anytime soon because of BTC unsolved problem.
HeavySatoshi
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@ZaZa_, From the way the markets are looking, could quite possibly start seeing all time lows. The whole crypto market is down right now and it would take it miracle to see an upside anytime soon... I think the next time LTC hits $47-48 I will come out of my position and wait for a colossal drop before re-entering. The thing with LTC is that you never really hear much news or hype, I understand that it is a work of progress - but some big news like Amazon or Paypal taking interest would make prices shooootttt!
Take a look at the exchanges trading LTC on coinmarketcap. OKCoin, Bithumb, Huobi are the top 3. China/Korea are trading more LTC than BTC by a factor of 3 - and significantly more than the USA. They all allow currency => LTC and vice versa without going through BTC.
The charts definitely have risk right now. The MACD tracked over a several day time unit has potential to move down quite a bit. However, the support level @ 300, 305 yuan is huge, and a strong resistance line @ MA30 when look at the day-charts. The up-trend channel has yet to be broken from the downtrend right now.
Obviously, always do your own research. Just throwing a few thoughts around.
HeavySatoshi
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@kurtcop, Yes that's so true. I have been basing much of my research from GDAX which essentially only represents a small part of the total market activity. Is there some place you can see the charts for all of the exchanges in one interface?
So 300 yuan is at that $44 mark which explains why there is always a retrace to this from a slip to $41-42. It is a probably a very risky strategy for me to sell my position just to accumulate 40-50 more litecoin during these slips. In the back of my mind I feel that a surge upward is imminent just based on trading volumes and the skeptics transferring out of ethereum.
What do you mean when you say that the up trend has yet to be broken?
kurtcop
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@HeavySatoshi, I have been following OKCoin's chart. Go to OKCoin.cn and you can set it to english and look at their charts there. The uptrend for the last 3 months, if you draw a channel around the spikes / dips, actually puts the bottom of the channel at around ~300 for right now, so the upward channel is still intact and we have not broken the bottom support level yet.
Any input is welcome! I have not been trading for very long and appreciate any validation/criticism of my thoughts.
HeavySatoshi
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@kurtcop, what are your signals saying now? Do you reckon the upward trend is in action right now? Are we ready to back through to the next highs?
StochRSI shows undersold in the 12H chart, we passed below the 20 marker 24h ago (to ~10ish) and now at the time of this post passed back upwards over 20. The MACD just crossed in the 4H chart, touched in the 6h, and is potentially angling to cross in the 12H chart as well. Obviously, in the lower charts, it's definitely positive, but anything <1h doesn't seem to have much relation to the larger trends.
There's a possibility that there's a downward triangle @ the support level for the last week.. but I'm really unfamiliar with patterns in general (I've only read up on the basic ones), so I'm generally following numbers for the most part. The EMA30 on the 1 day chart has not been broken as a support level, either.
I drew the channel there for the data, and added the possible downward triangle. My feeling is that we're headed back upwards, however I am noting that the Chinese and Korean markets are trading ETH far more than they have in the last week or two, but LTC is still getting traded more than BTC there.
kurtcop
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@HeavySatoshi, Also would note, the buy/sell orders on OKCoin, the buy orders decrease very slowly (and many are orders of thousands of LTC) and the sell orders increase in value 2-3x as fast, implying they believe the price is going to shift upwards farther, and there's strong buying presence.
I'd love to hear your opinion on that, or why you think that would be incorrect, as well (I have been studying as well as I can, but I would appreciate any input on why you would move to a different conclusion).