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LTC/USD PAIR BITFINEX:LTCUSD wicked off of the first fib level, completely normal in my opinion. The Chalkin Money Flow (SURPRISE SURPRISE volume indicator :D) showed a decrease in buying pressure as the price moved up, creating a 100% predictable cool down and pull back. I don't expect LTC to come down too far before stabilizing. If the volume picks back up, then it will continue for a smaller push back to ATH levels if we see short-term mainstream interest continue.
Our strength and momentum indicators are getting the much needed break they wanted for a stable price. I do expect a bit more of a drop before we continue bullish but nothing crazy showing as of now.
LESSON: Momentum and strength indicators can be at the ceiling (topped out) and a price can continue to rise if the volume levels show no divergences, look at BTC or in the case LTC's rise on price but topped out Stoch and RSI . Volume showed the price continuance at $230 but began to reveal the divergence in buy pressure shortly after and making it clear around $300-330 ( RSI and STOCH showed weakness too even thought the price continued up from the FOMO. Predictable 100%.
Next time someone says "Oh the RSI is capped or the STOCH or such and such is capped we are going down", take a look at the volume indicators like a wise day trader does. ;)
Our strength and momentum indicators are getting the much needed break they wanted for a stable price. I do expect a bit more of a drop before we continue bullish but nothing crazy showing as of now.
LESSON: Momentum and strength indicators can be at the ceiling (topped out) and a price can continue to rise if the volume levels show no divergences, look at BTC or in the case LTC's rise on price but topped out Stoch and RSI . Volume showed the price continuance at $230 but began to reveal the divergence in buy pressure shortly after and making it clear around $300-330 ( RSI and STOCH showed weakness too even thought the price continued up from the FOMO. Predictable 100%.
Next time someone says "Oh the RSI is capped or the STOCH or such and such is capped we are going down", take a look at the volume indicators like a wise day trader does. ;)
Kommentar:
I am expecting a small drop on LTC/USD pair to $280-$285 range. Will update if it appears to test below that.
