Exploration of candlestick patterns to evaluate Litecoin (LTC)
In recent years, cryptocurrencies have been a high visibility and shaky asset class, and many investors have sought to take advantage of growth opportunities. These cryptocurrencies include Litecoin (LTC), an open source Peer-to-Peer cryptocurrency that has become popular with both merchants and investors. In this article, we examine how to use candlestick samples to evaluate litecoin performance and to make well -founded trading decisions.
What are the patterns of candle holders?
Candlestick patterns are one of the forms of technical analysis used in the stock exchange and cryptocurrency analysis to identify potential trends or reversal of price movements. These patterns consist of a series of vertical lines that represent the high, low, open and closing prices of each trading days. By identifying specific candlestick patterns, merchants can gain insight into the trend and strength.
Litecoin (LTC) Candlestick patterns
Litecoin has undergone a number of trends in recent years, with Cryptocurrency prices for $ 40 and more than $ 300 per coin. To evaluate LTC’s performance using candlestick patterns, we focus on four key samples:
- hammer pattern
- Reverse Hammer pattern
- Shoot Star pattern
4.
Hammer pattern: bear indicators
The hammer pattern consists of a small lower height with a small upper bottom. This sample is considered a Bullish indicator as it suggests that the price has reversed its trend, indicating a possible increase in prices.
Apply a hammer pattern to the Litecoin diagram:
- Determine a new low on the diagram.
- Draw a small lower level under the previous lower part.
- If the next candle closes above the new bottom, the sample will be confirmed.
The reverse hammer pattern: bear indicators
The inverse hammer pattern is similar to a traditional hammer pattern, but is in the opposite direction. It consists of two short lower peaks with a small upper high. This sample is considered Medves as it suggests that the price has reversed its trend, indicating a potential decrease in prices.
To apply the inverted hammer pattern to the Litecoin diagram:
- Determine two new low points on the chart.
- Draw a small higher above the previous lower.
- If the next candle closes below this high, the sample will be confirmed.
Pattern of shooting star: bear indicators
The shooting star pattern consists of three lower depths with a upper high. This sample is considered Medves as it suggests that the price has reversed its trend, indicating a potential decrease in prices.
To Apply the Shooting Star Pattern to Litecoin’s Chart:
- Determine three new low points on the chart.
- Pull an upper top over the previous lower 10-20 candle intervals after each lower part.
- If the next candle closes below the upper upper part, the sample will be confirmed.
Sample inverse head and shoulders (iHS): bear indicators
The IHS pattern consists of a small higher height and then a low. This sample is considered Medves as it suggests that the price has reversed its trend, indicating a potential decrease in prices.
Apply the IHS pattern to your litecoin diagram:
- Identify a new lower height on the diagram.
- Draw a top top of the lower exact 10-20 candle intervals for each previous higher high.
- If the next candle closes below the upper upper part, the sample will be confirmed.
Conclusion
Cryptocurrencies, such as Litecoin, are exposed to significant price fluctuations and understanding candlestick patterns can help merchants and investors make decisions.
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