Long
LTCUSD 1d long, current and past Divergences, great Opportunity
On March 29th a sudden Increase of Volatility happend - look at the Average True Range (ATR): this Indicator clearly shows that the daily Range of Price started to increase.
Several Divergences indicate a Reversal of the current trend. Divergences of the Commodity Channel Index (CCI) against Price are shown by CCIDivergence, Divergences of Momentum against Price are shown by "Jeddingen Divergence" (JDiv).
Based on those both Indicators Jeddingen Divergence and CCIDivergence, a lucrative Strategy evolves, looking at the daily Candles.
A Signal is generated when a JDiv or a CCIDiv is occurs, Support and Resistance lines can be used as Take-Profit and Stop-Loss.
In this Example, there is one Exceptions. The very first Divergence wouldn't have worked out - although Price dropped at the End of the Divergence. Maybe Volatility/ ATR was too low.
At the second Divergence (the first Trade), there was a bearish CCIDivergence with no Resistance (Price was at it's alltime high at that time) and no support Level that seemed usable (it would have been a Support somewhere at the low-volatility Area). A common Practice with those kind of Trades is to use Pivots as Profit-Targets. In this case the weekly Pivot (Fibonacci-Style) would have been a good Target. Most of my Trades do not have a Stop-Loss, but in this case, I guess I would have calculated the Stop-Loss in a Way so that the Risk-Reward-Ration would have been 1.
Recently there appeared a JDiv and a CCIDiv. According to my Strategy, the Profit-Target could be the alltime High at 94.021. Though there are other structures since September second, I don't believe that they are reliable resistance Levels, because since then, LTCUSD was in a massive Downtrend. But to play it safe, an earlier Exit could be considered, e.g. an earlier Pivot or a Fibonacci Level.
As Stop-Loss I would suggest the Resistance-Level that was used in the earlier Trades.
To learn more about my Indicators/ Studies, send me a PM or click one of the URLs in my Signature.
Several Divergences indicate a Reversal of the current trend. Divergences of the Commodity Channel Index (CCI) against Price are shown by CCIDivergence, Divergences of Momentum against Price are shown by "Jeddingen Divergence" (JDiv).
Based on those both Indicators Jeddingen Divergence and CCIDivergence, a lucrative Strategy evolves, looking at the daily Candles.
A Signal is generated when a JDiv or a CCIDiv is occurs, Support and Resistance lines can be used as Take-Profit and Stop-Loss.
In this Example, there is one Exceptions. The very first Divergence wouldn't have worked out - although Price dropped at the End of the Divergence. Maybe Volatility/ ATR was too low.
At the second Divergence (the first Trade), there was a bearish CCIDivergence with no Resistance (Price was at it's alltime high at that time) and no support Level that seemed usable (it would have been a Support somewhere at the low-volatility Area). A common Practice with those kind of Trades is to use Pivots as Profit-Targets. In this case the weekly Pivot (Fibonacci-Style) would have been a good Target. Most of my Trades do not have a Stop-Loss, but in this case, I guess I would have calculated the Stop-Loss in a Way so that the Risk-Reward-Ration would have been 1.
Recently there appeared a JDiv and a CCIDiv. According to my Strategy, the Profit-Target could be the alltime High at 94.021. Though there are other structures since September second, I don't believe that they are reliable resistance Levels, because since then, LTCUSD was in a massive Downtrend. But to play it safe, an earlier Exit could be considered, e.g. an earlier Pivot or a Fibonacci Level.
As Stop-Loss I would suggest the Resistance-Level that was used in the earlier Trades.
To learn more about my Indicators/ Studies, send me a PM or click one of the URLs in my Signature.
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