On the , we can see that it has flattened out, as the momentum has died during this consolidation. is also decreasing, which is typical to see during flag consolidations, so the indicators are essentially confirming the flag action on the chart. That doesn't necessarily mean that a downside break is certain. Currently, there appears to be a high probability of a downside break, but I'm not here to "predict" whether or not it's going to break to the downside. That's not what analysis is all about. We identify patterns, and trade the breakout. Whether it breaks to the upside or the downside doesn't matter. I can make money either way, but for now, I am anticipating a downside break.
Here's how Magic plans to trade this flag. The moment it breaks to the downside, I will short it, with a stop loss just above the bottom of the flag, with the intention of seeing LTC fall to the 130 level. I will unload 1/4 of the position, at each 1/4 interval on the way to 130. If a reversal signal emerges anywhere in the middle of that trade, I would unload the entire short. If/when the rising green is reached, I will exit my short position, and immediately look for a long position, after a bounce off of this extremely important rising support. For now, let's keep our eyes on the charts, in anticipation of a breakdown of the flag. I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. revoir.
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.***
-Magic loves you-
Please clarify or be more transparent for someone that doesn't know to much about shorting, margins, and unloading?