Cryptocurrency action strategies for Litecoin trading (LTC)
As a trader, you are constantly looking for effective means of making intelligent investment decisions. Cryptocurrencies have become more and more popular in recent years, and many traders have been on the market to find high yields. One of the most sought after cryptocurrencies is Litecoin (LTC), which recently experienced significant growth and volatility. In this article, we will review certain pricing strategies to exchange Litecoin using technical analysis techniques.
Understand the action of the Litecoin price
Before diving into pricing strategies, it is necessary to understand what makes a cryptocurrency by checking. Litecoin is an electronic cash system with open source which allows users to send and receive transactions without the need for intermediaries. The network operates on the consensual mechanism where minors check the transactions and add them to the blockchain.
Key indicators of price action
When analyzing Litecoin pricing events, there are several key indicators that traders can use to measure the feeling of the market and potential commercial opportunities:
1 The clear upward trend line moves the price upwards, while the trend line lowered.
- Crossovers volume: volume is a basic indicator that helps traders confirm the action of prices. When the volume passes over its 20 Better diameter (MA), it can mark a potential purchase signal.
3 RSI below 30 indicates the conditions of the loan, while the RSI greater than 70 indicates the conditions sold.
Price action strategies for Litecoin trading
Here are several price events strategies for Litecoin trading:
- Trend on strategies
* Next long-term trend: Identify a long-term trend and follow it. In this case, the long -term trend is increasing.
* Next short-term trend: Identify the short-term trend or downward trend and follow it. However, be careful of false signals of short -term prices action.
- Break strategies
* Identify potential breaks: Search for areas where prices have exploded with previous levels of support or resistance.
* Adjust the stop-loss: adjust the stop below the leakage level to limit the losses.
- Identification of support and resistance
* Identify key support and resistance level: use technical indicators such as trend lines, RSI and MacD to identify support and resistance areas.
* Adjust the stops accordingly: when prices break out above or below these levels, adjust your rod to avoid significant losses.
Example of graphic
Here is an example of a graphic that demonstrates the long -term trend as follows:
| Date | Top | Stockings | Open | Closed |
| — | — | — | — | — |
| 2020-01-03 | $ 45.00 | $ 43.50 | $ 44.00 | $ 46.20 |
In this table, the high price is $ 46.20 per high increase, while the low price of $ 43.50 indicates a certain level of support.
Conclusion
Cryptom trading is a high risk activity that requires careful analysis and risk management strategies. The action of volatile prices in Litecoin has profits opportunities with informed decision -making. By understanding the main price indicators and applying these strategies, traders can increase their chances of success in the cryptography market.
Reneeing of responsibility
This article should not be considered as an investment advice or as a future performance guarantee. Cryptom Trading presents significant risks and it is necessary to do your own research before doing stores. Always put in place stops, limit your exposure to high -risk assets and never invest more than you can afford.