Price Action Strategies For Trading Litecoin (LTC)
Cryptocurrency Price Strategies for Commerce with Litecoin (LTC)
As a merchant, it is constantly in effective ways of making smart investment decisions. Cryptocurrencies have become increasingly popular in recent years, with many distributors going mass to the market in search of high yields. One of the most requested cryptocurrencies is Litecoin (LTC), which recently recorded significant growth and volatility. In this article, we will examine some price action strategies for trade with Litecoin using technical analysis techniques.
Understanding of the Litecoin Prize campaign
Before immersing yourself in price campaign strategies, it is important to understand what makes cryptocurrency work. Litecoin is an open source cash system between peers to the same with which users can send and receive transactions without the need for intermediaries. The network works with a consensus mechanism in which the miners verify the transactions and are added to blockchain.
KEY PRICE ACTION INDICATOR
When analyzing the Litecoin price campaign, there are several important indicators with which retailers can evaluate the mood of the market and the possible commercial opportunities:
- Trend lines : Traffickers often follow tendency lines to identify support and resistance areas. A clear ascending line of upward trend will push prices up, while a line of descending trend reduces it.
- Volume crossovers : Volume is an essential indicator that helps distributors to confirm the price action. If the volume exceeds (MA) above its 20 -year sliding average, you can show a possible purchase signal.
- oscillator RSI : The relative force of force (RSI) measures the impulse of the market and volatility. A RSI under 30 shows overcompra conditions, while a RSI points to more than 70 large conditions.
Price campaign strategies for Litecoin trade
Here are some price campaign strategies for the Litecoin trade:
- Trend according to strategies
* Follow the long -term trend: identify the long -term trend and follow it. In this case, the long -term trend has increased.
* Follow the short -term trend: Identify an ascending trend in the short term or a downward trend and follow it. However, be careful with the false signals of the short -term price campaign.
- Rupture strategies
* Identify potential outbreaks: look for areas in which prices have been broken from previous support or resistance levels.
* Use a stop loss: Establish a loss of stop under the outbreak level to limit losses.
- Support and resistance identification
* Identify the most important level of support and resistance: Use technical indicators such as trend lines, RSI and MACD to identify support and resistance areas.
* Adjust the loss of stop accordingly: if prices are broken above or below these levels, adjust your stop loss to avoid considerable losses.
Example diagram
Here is an example diagram that shows a long -term trend according to the strategy:
| Date | High | Bass | Open | Close |
| — | — | — | — | — |
| 2020-01-03 | $ 45.00 | $ 43.50 | $ 44.00 | $ 46.20 |
In this diagram, the high price of $ 46.20 corresponds to a strong upward trend, while the low price of $ 43.50 indicates a certain degree of support.
Diploma
Cryptocurrency trade is a high -risk activity that requires careful analysis and risk management strategies. The Litecoin volatile price campaign offers distributors the opportunity to make profits with informed decisions. By understanding the most important price action indicators and the use of these strategies, retailers can increase their chances of success in the cryptocurrency market.
Exclusion of responsibility
This article should not be considered as investment advice or a guarantee for future service. Cryptocurrency trade includes considerable risks and it is important to carry out its own research work before doing business. Always establish a loss of stop, limit your commitment to high risk and never invest more than you can afford to lose.