Hey Folks. I got my eye on a possible trade setup for Litecoin (LTC).
As of right now, I am looking to get into a Short Position in Litecoin, but the Short Trade setup is only worth my time if my target area is hit inside the Golden Pocket, with a Bearish Divergence on the RSI, for the Risk/Reward must be in my favour for me to enter.
On the chart above, I have two entries. 1st Entry is at or near 85.33, and the 2nd Entry is at or near 99.35. I will enter trade at 85.33, if Bearish Divergence is printing, and if Price Action continues to move upwards, I will add to my Position at 99.35. On the chart above, notice the current Price Action could be consolidating inside a possible Bull Flag, giving Price Action a possible chance for more upward movement.
I look for at least 2 Confirmations to increase my odds.
Confirmation 1 - Golden Pocket - Between 0.618 - 0.65 on Fib Retracement Tool
Confirmation 2 - Bearish Divergence on the RSI
For a possible 3rd Confirmation, I would like to see action from the Stoch RSI. (See Chart Below)
Note, the Stoch RSI it is note a necessity for me to get into trade as long other 2 Confirmations are hit, but if Stoch RSI plays out like I suspect, it will be another Confirmation to increase my odds of a successful trade.
My Stop Loss will be set at or near 108.14, but it depends on Price Action. May close lower or higher.
I will take Profits at key points as on 1st Chart Above, and will move Stop Loss once 1st Take Profit is hit, and depending on Price Action I may close entire trade at anytime, or let the rest ride for long as possible, while moving my Stop Loss as Price Action falls, insuring profits. But Markets can change at anytime, and depending on price action, I may revaluate my position. Nothing is set in stone. For no trader can predict the markets. The best that traders can do is to determine the probabilities in which direction it will go.
Note: This trade is a Swing Trade. Anywhere from a couple days to a week or two, possibly more.
It is important to note, the trade may not materialize. This is only a Plan of Action if Price Action hits key Targets. Not Financial Advice. And I do not use leverage.
Please Take Note: Price Action on Day Charts can take some time to play out. Anywhere from a day or two or a couple of weeks.
