Litecoin, and the "Falling Three Methods Candlestick Pattern"
Updated
On November 27th, 2023 the “Collapse to $30” idea was published (below). The idea was met with some rebuttal, shall we say.
The evidence for a collapse in Litecoin price action has only grown in the past few months.
A new candle prints on the above 2-month chart in 14 days. If it prints as is, it will be a Gravestone DOJI. Such candlesticks on this timeframe represent significant profit taking and selling pressure.
The yellow arrows identify bearish engulfing candles. The last one printed on September 2023, confirming legacy support as resistance.
The print was followed by three green candles. Do you recognise them? And the red one that now follows it?
This candlestick pattern is called the “Falling Three Methods Candlestick Pattern”. It is a continuation pattern. When three Green candles in-between the bearish engulfing and DOJI are unable to close above the bearish engulfing candle, a significant sell off prints. Overall the pattern is informing you of the inherent weakness in price action.
Litecoin bulls, you’ve been warned!
Ww
The evidence for a collapse in Litecoin price action has only grown in the past few months.
A new candle prints on the above 2-month chart in 14 days. If it prints as is, it will be a Gravestone DOJI. Such candlesticks on this timeframe represent significant profit taking and selling pressure.
The yellow arrows identify bearish engulfing candles. The last one printed on September 2023, confirming legacy support as resistance.
The print was followed by three green candles. Do you recognise them? And the red one that now follows it?
This candlestick pattern is called the “Falling Three Methods Candlestick Pattern”. It is a continuation pattern. When three Green candles in-between the bearish engulfing and DOJI are unable to close above the bearish engulfing candle, a significant sell off prints. Overall the pattern is informing you of the inherent weakness in price action.
Litecoin bulls, you’ve been warned!
Ww
Note
Litecoin bulls, you'll need to do something special in the remaining hours of this month to prevent the 2-month Gravestone DOJI candle from printing tomorrow.2-month
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In April we identified Falling Three Methods Candlestick (FTMCP) pattern. Fast forward to the tail end of June and we can see the pattern is all but confirmed. Litecoin bulls have 6 days to change the all but certain fait. (see 2 month chart below).(1) The FTMCP pattern is a continuation pattern, a careful eye is needed for correct identification. There are rules that include candle body and colour.
(2) The Gravestone DOJI
(3) The bearish engulfing candle. The confirmation.
The FTMCP pattern important to recognise especially on the higher time frames like this idea is on, the 2 month chart. Each candle is 2 months of data. It is telling you something very important about the underlying asset <<< trigger warning...>>> Litecoin is dead. A Dodo on return from the taxidermist has more life.
What about price action?
The excellent thing about FTMCP patterns is the reliability of their forecasts. It is a bearish continuation 71% of the time. It is also rare, having a frequency rank of 91 out of 103 candles. Proper rare. That rarity also makes it powerful, no one is looking for it.
The continuing correction is forecast to achieve $15.
Ww
2-month
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This was a perfect example of a "Falling Three Methods" candlestick pattern that has now confirmed. They are incredibly bearish patterns.
If price action fails to consolidate on $25 you're going to see a collapse to $5.
2 month
Note
Bulls, you cannot let this monthly candle print in 10 days. You need to see $75 at the very least before end of August. Otherwise the bear flag confirms with a drop to under $30.
Note
3 month chart below. A new candle will print next month.
Price action cannot print below the channel as is now. It will mark the start of a drop to $10
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Remember this idea? The red circle indicates the publishing date. FTMCP is an important candle stick pattern to observe on the higher time frames. Read the main idea again for details.
We can see the FTMCP has now confirmed with a following break of support for price action.
The flag now forecasts a correction to $15.
BTC
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Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
bc1q2eckdzh0q8vsd7swcc8et6ze7s99khhxyl7zwy
Weblink: patreon.com/withoutworries
Allow 3-6 months on ideas. Not investment advice. DYOR
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