Cryptocurrency Prices Action Strategy for Trading Litecoin (LTC)
As a merchant, you are constantly looking for effective ways to make intellectual investment decisions. In recent years, cryptocurrencies have become increasingly popular as many merchants are flocking to the market in search of a large return. One of the most desirable cryptocurrencies is Litecoin (LTC), which has recently noticed significant growth and volatility. In this article, we will examine some Litecoin trading strategies using technical analysis methods.
Litecoin price understanding
Before diving into price strategies, it is necessary to understand what makes the cryptocurrency mite. Litecoin is an open source peer electronic cash system that allows consumers to send and receive transactions without intermediaries. The network operates under the consensus mechanism when the mining is checking the operations and adding them to Blockchain.
Basic price indicators
Analyzing the Litecoin price action, there are some of the key indicators that traders can use to evaluate the market moods and potential trading capabilities:
- A clear rise line will increase the prices up and the recession line will reduce them.
- When the volume transcends over 20 periods of sliding average (MA), it may indicate a possible purchase signal.
- RSI oscillator : Relative strength index (RSI) measures market acceleration and volatility. RSI, less than 30, shows too much conditions, while RSI, exceeding 70, shows resold conditions.
Litecoin trading price strategies
Here are some Litecoin trading price strategies:
- RIGHT THIS strategy
* Long -term trend: Set a long -term trend and follow it. In this case, the long -term trend is up.
* Short -term trend: Set the short -term upswing or downturn and follow. However, be careful about false signals for short -term prices.
- Breakout strategy
* Set possible fractures: Look for areas where prices have been interrupted due to previous support or resistance level.
* Set the Stop-Loss: Set the stop of the stop below the fracture level to limit the loss.
- Support and resistance identification
* Set the main levels of support and resistance: Use technical indicators such as trend lines, RSI and Macd to determine support and resistance areas.
* Correspondingly adjust the suspension loss: When the prices rise above or below these levels, adjust your stop loss to prevent significant losses.
Example diagram
Here’s an example chart showing a long -term trend in this strategy:
| Date | High | Low | Open | Close |
| — | — | — | — | — |
| 2020-01-03 | $ 45.00 | $ 43.50 | $ 44.00 | $ 46.20 |
In this chart, the high cost of $ 46.20 indicates a strong rise, while the low cost of $ 43.50 indicates a certain level of support.
Conclusion
Cryptocurrency trade is a high -risk activity that requires careful analysis and risk management strategies. Litecoin’s unstable price action gives traders the opportunity to earn a profit in making a reasonable decision -making. By understanding the basic price indicators and applying these strategies, traders can increase their chances of success in the cryptocurrency market.
Refusal of responsibility
This article should not be considered as advice on investment or future results. Cryptocurrency trading involves high risk, so it is important to do your research before commercial. Always determine the suspension loss, limit the effects of high -risk assets, and never invest more than you can afford to lose.
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