Litecoin chart analysis: 6 hour timeframe
The Litecoin chart (LTCUSD) used in this analysis is a candlestick chart with a logarithmic scale. A falling diagonal (wedge) chart pattern is indicated to capture the bearish action in LTCUSD.
The bottom of the wedge is expected to offer support for LTCUSD and a close below could trigger more shorting. The relative strength index (RSI) as shown here is already oversold and a close of price below the previous close of $56.50 at the end of the Daily candle would have helped establish a positive or bullish divergence.
This implies that the current bearish momentum is running out, but at the same time does not by itself offer reasons to initiate a long (buy) position.
Use of physical measurements based on the chart pattern are best carried out on an arithmetic scale.
The bottom of the wedge is expected to offer support for LTCUSD and a close below could trigger more shorting. The relative strength index (RSI) as shown here is already oversold and a close of price below the previous close of $56.50 at the end of the Daily candle would have helped establish a positive or bullish divergence.
This implies that the current bearish momentum is running out, but at the same time does not by itself offer reasons to initiate a long (buy) position.
Use of physical measurements based on the chart pattern are best carried out on an arithmetic scale.
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