Long

Wedge Fractals in Symmetrical Triangle - 150% profit potential

Updated

LTC is carving out a 4 month long correction. We have a symmetrical triangle encompassing two downward wedge fractals. In the larger fractal LTC has a double bottom at the 78% fib retracement (point A). The bust out from the larger fractal takes LTC slightly above the 38% retracement (point B). LTC then has a smaller downward wedge fractal; interestingly, we see the second touch down within this fractal wedge, (at $160.50 and marked "Double Golden Ratio!!" on the chart) is a 61.8% retracement of the impulse taking us from point A to point B, but also is the 61.8% retracement point of the larger December 2017 impulse. LTC is currently in a 'Bull Wick" decending down out of the downward wedge to touch down on the lower support of the symmetrical triangle at $132.00. The 'Bull Wick' will cleans LTC of sellers causing the impetus for busting upwards out of the wedge to extend to the upper resistance of the triangle at $202.00 (point D). Here we have 150% profit potential, and an opportunity to raise some cash for buying back in at $160, near point E before a much larger impulse upwards after the 4 month long correction completes. I am targeting $160 as a good buy in price as it is the apex of the symmetrical triangle and is at the key 61.8% retracement.

Note

Note that point D was chosen at $202.00 because that is the 50% retracement point and has been a key bounce point throughout the correction.

Note

LTC just bounced at the 78% retracement of the B wave impulse, at $137. This was also the bottom of wave 3 of the C wave of the extended flat making up the wedge. Wave 1 was from $231 to $200 (height of 31). Wave 3 was from $219 to $137 (height of 81). Wave 3 was extended and 2.62 of wave 1. LTC just completed wave 4 and will extend down to $124 from the peak at $155. This will make wave 5 match wave 1 in height (31) and it will have it touch the 88% common retrace. It will therefore pierce the bottom symmetrical triangle support causing another "bull wick."

Note

Throughout this correction, LTC has lead BTC. It looks to me like BTC has taken the baton at the start of its impulse that started on 03/18. BTC is following the same wedge fractal embedded within a symmetrical triangle pattern, and its impulse and wave count was much more clear; BTC has started its progression towards its point D. That led me to believe LTC's action upwards from 138 to 160 was an impulse to start action towards point D, and not wave 4 of 5 of a continued correction. I analyzed the LTC to BTC pair and it is very clear on that chart that the ABC correction had ended on 03/18, where wave A and wave C ratios are 1 to 1. All of this led me to find a wave count on the LTC/USD pair chart that made sense. Here's what I got:

wave 1: $233 on 02/26 to 211 on 02/27: height = -22
wave 3: $222 on 02/28 to 200 on 03/01: height = -22
wave 1, 2, 3 combined height = -31
wave 5: $219 on 03/03 to 138 on 03/18: height = -81
extended 5th wave : waves 1, 2, 3 ~ 2.618

Typically you'd like to see an extended 5th wave be a lot more vertical - nothing is typical about the wave count above; however, it fits all the rules and ratios you'd like to see in a downward 5 waves. That said, don't wait for LTC to hit the 88% retrace value of $124. All signs are saying its not going there, its headed towards point D at $202.

asegretto

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