We continue a series of publications on trading in order to understand in practice how much money can be earned. novice investor using only forecastspublished on our website. To understand how useful they are, we decided to conduct an experiment and simulate a situation in which a person who knows about trading only what you need to “buy cheaper and sell more expensive”, tries to get additional income in his spare time by investing part of his money in cryptocurrency trading
After the price of Litecoin broke through on October 25the six-hour moving average EMA55, since then it has never dropped below this level of average prices. In late October, the couple lay down on their side and spent more than a week in flat. Trading in a narrow sideways was irrational.
At the beginning of last week, buyers soldresistance level of 78.6% FIBO (59.31 USDT) and continued price recovery. Despite a fairly deep pullback last Friday, the price of LTC stayed above the six-hour EMA55. The Friday low zone can be taken as the Stop Loss level. The entire trading plan will look like this:
Immediate recovery outlookForkNews forecasts level of 64.00 USDT. But on September 24, at around 66.00 USDT, some price consolidation was observed. Perhaps this time the price will be able to gain a foothold in this area. Therefore, we expect to leave the open long position at 66.00 USDT (Take Profit) before the end of the week.
But where do we go in long?
You can also enter from the current price level, which at the moment on the Binance exchange is 61.30 USDT. A more interesting option is to buy directly from the average price level (60.60 USDT).
However, in the afternoon, a slight decrease in the pair is expected, and we plan today to test the six-hour moving average EMA55 for strength.
If sellers manage to pierce the three-weeksupporting the level of average prices, you can try to buy 3 LTC at 60.00 USDT. If the decline continues, stop losses at 58.88 USDT (purple Stop Loss line).
How the LTC price will actually behave, and we will describe our results from the trade transaction (if it takes place) in our next publication.