Buying Pressure Falling in Litecoin – Double Divergence Formed
アップデート済
We are looking for to take a short position in litecoin versus bitcoin after today's upward movement. Litecoin has been performing well in relation to bitcoin after forming a high of 1514 satoshis in recent trading, over double the lows of December.
We are looking to take a short position which will be going against the general trend as it stands and will also be going the idea that price can continue the strong movements that it has been recording today.
So... why are we doing it then?
The trade is a short-term bet on litecoin having to fall back before it can make another significant movement upward. The main reason we believe this to be the case is a double divergence forming on the litecoin versus USD chart between price and the RSI.
This shows price forming a series of higher highs despite buying pressure continuing to fall.
This contrasts the bitcoin versus USD chart where the price and RSI are pretty much in line.
However, as with any trade, we could be wrong. We will only enter the trade if the price reaches 1450 sats. In the case that we are wrong, we are setting our stop loss at 1470 sats and we would anticipate some resistance to come into play at 1466 sats.
Our profit target is at 1420 sats, giving us a bit of comfort room to exit before where we expect the FTA at 1412 sats. This gives the trade a risk to reward ratio of 1.5 meaning this trade needs to win at least 40% of the time to be profitable.
At the moment, the trade is just in as a limit order and we will keep you updated if it gets filled and how it progresses.
Let us know your thoughts in the comments!
We are looking to take a short position which will be going against the general trend as it stands and will also be going the idea that price can continue the strong movements that it has been recording today.
So... why are we doing it then?
The trade is a short-term bet on litecoin having to fall back before it can make another significant movement upward. The main reason we believe this to be the case is a double divergence forming on the litecoin versus USD chart between price and the RSI.
This shows price forming a series of higher highs despite buying pressure continuing to fall.
This contrasts the bitcoin versus USD chart where the price and RSI are pretty much in line.
However, as with any trade, we could be wrong. We will only enter the trade if the price reaches 1450 sats. In the case that we are wrong, we are setting our stop loss at 1470 sats and we would anticipate some resistance to come into play at 1466 sats.
Our profit target is at 1420 sats, giving us a bit of comfort room to exit before where we expect the FTA at 1412 sats. This gives the trade a risk to reward ratio of 1.5 meaning this trade needs to win at least 40% of the time to be profitable.
At the moment, the trade is just in as a limit order and we will keep you updated if it gets filled and how it progresses.
Let us know your thoughts in the comments!
コメント
Price did make a move up since posting the idea but I am using the BitMex futures contract which is trading at a slightly lower price. Price did not reach 1450 sats on the move but keeping the order active.
トレード終了: 利益確定目標に到達
This trade worked out as expected. Price just reached 1450 sats to get filled and dropped over the past few hours to the profit target at 1420 sats. It has since recovered and we will be staying out to monitor before taking out next position.
Get the latest analysis to your inbox adaptiveanalysis.substack.com
Find out our services at adaptiveanalysis.io
Tweet at us @adaptiveIO
Find out our services at adaptiveanalysis.io
Tweet at us @adaptiveIO
免責事項
これらの情報および投稿は、TradingViewが提供または保証する金融、投資、取引、またはその他の種類のアドバイスや推奨を意図したものではなく、またそのようなものでもありません。詳しくは利用規約をご覧ください。