Much like the entire cryptocurrency market, LTC has been ranging slowly over the past month. Impatient trend-based traders may find this frustrating(calling LTC a coin), as the price has lost -39.68% since it touched 182usd.
Nevertheless, Pitchfork(pf),and chart pattern can help distinguish actionable trading signals.
The chart pattern
The bullish flag pattern
A pole which started and ended last year with price movement to the new ATH, immediately price started falling to the down side as the flag started it formation on the 18th of December 2017( with a rectangular shape.
Always remember this, If you don't have a straight-line price run (the flagpole), then you don't have a flag. The best performing flags have a long, near vertical flagpole.
Flag moved down in a rectangular shape.
A Pitchfork on the daily chart with anchor points in July 2016, 2nd September 2017, and 15th september 2017 shows the previous local high being rejected at the pitchfork median line (ML)(the hagopian rule). Price will continually attempt to return to the ML throughout any given trend. if price tries to move up to reach the ML on volume would suggest a move to the next diagonal resistance @155usd.
The number noe rule of pitchfork would likley come to play when price tries to breakout from the diagonal resistance:
-There is high probability that price will reach the latest median line(ML) $355.
PREVIOUS MARKET RESULT:
Break even failure rate for up/down breakouts: 4%; 2%
Average rise/decline: 23%; 16%
Throwback/pullback rate: 43%; 46%
Percentage meeting price target for up/down breakouts: 64%; 47%
Price trend Can be any direction leading to the chart pattern.
Shape Looks like a small( or most times long)rectangle often tilted against the prevailing price trend.
Prices move between two parallel, or near parallel, trendlines.
The flagpole which leads to the flag should be unusually steep and last several days.
Volume trend Downward trend 71% of the time.
Breakout Upward 54% of the time.
Analysis is a little bit mixed, but pegged at reach a new high of 500usd+ with little consolidation at its current range and might probably reach a low of 98usd.
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.