Hey traders! I want to share with you my LTCUSD analysis. As you can see in the chart, there is a big triangle pattern that has been forming since last week, which is now about to be completed. You can also obserb how volume has been decreasing along last week, which supports the idea of a triangle pattern formation.
So, what´s next? Well, is these cases (triangle pattern) we presume there is no way to predict with total certainty if price will go up or down, so we want to trade in both directions. We don´t know what the price direction will be, however, we can estimate the price movement height just watching the height of the triangle.
I use to set my take profits at the middle of the triangle´s height, however, you can change the target depending on your risk profile and price expectations.
MY ORDERS
BUY STOP: 305 Take Profit 1: 345
SELL STOP: 265 Take Profit 2: 215
Remember numbers can vary depending on your risk profile and price expectations. The numbers I propose should be use as a reference :)
If you find this analysis helpful, don't forget to follow, like and comment. I use to upload new analysis every day :)
Is it a good place to buy at the bottom where it has dropped a height of triangle?
longlivelance
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Hi Juan! I am learning about TA and trading in general. Your TAs are a great help to me, so thank you very much for that! When you have a sell stop, you are selling your position, with the idea of buying it back at the 215 again?
Juanchobanano
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Hey @longlivelance, thanks for your comment :) That´s right :)