Back down to test its previous support last year 11th of November 2017. Currently testing those lows and might likely go down more.
LITECOIN continues to make fresh lows despite a continued relative decline in trading volume. A chart pattern has been spotted on the 12hours time frame, to determine The strength or weakness of this price the chart pattern spotted (falling wedge) will be used to to analyse the price movement.
THE FALLING WEDGE PATTERN:
A wedge is a chart pattern characterized by a contracting range in prices coupled with a downward trend in prices (known as a falling wedge).
It is a type of formation in which trading activities are confined within converging straight lines which form a pattern.
The falling wedge pattern is characterized by a chart pattern which forms when the market makes lower lows and lower highs with a contracting range. When this pattern is found in a downward trend, it is considered a reversal pattern, as the contraction of the range indicates the downtrend is losing steam. When this pattern is found in an uptrend, it is considered a bullish pattern, as the market range becomes narrower into the correction, indicating that the downward trend is losing strength and the resumption of the uptrend is in the making.
PREVIOUS MARKET PERFORMANCE:
Break even failure rate for up/down breakouts: 11%; 15%
Average rise/decline: 32%; 15%
Throwback/pullback rate: 56%, 69%
Percentage meeting price target for up/down breakouts: 70%, 30%
Price trend Can be any direction leading to the pattern. On the chart, the direction is downward.Price follows two down-sloping and converging trendlines.
Touches Price should touch each trendline at least five times to outline a good pattern. That's 3 touches of one trendline and 2 of the opposite.
The Duration is always 3 weeks is the minimum duration.
Volume Trends downward 72% of the time until the breakout.
Breakout Can be in any direction but is upward 68% of the time.
The pattern confirms as a valid one when price closes outside one of the trendlines.
price has current reach the low of last year, but might likely touch$75 down to $68.
SELL:$100, $127 and $150
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.