LTC 1D - Options for the Cup's Handle
So I have been looking at my previous trade analysis... I think it is still valid, although it is so painful to be waiting through this bearish period. I had previously estimated based upon the chart the narrowest "handle" but now on the updated chart, there are some potential options. The Orange line seems to be a bottom trend line. The Red line is what I think seems like a reasonable assessment of the bottom trend line. The Blue is my preferred top trend line. The Green is an alternative top trend line. The reason I like the Blue over the Green and Red over Orange is that it looks as though the trend broke out and is now retesting prior to moving upward towards the C&H's target. The Green line would mean we are still trending in the handle, with (if using the red bottom line) looks more like a channel. That would mean we have some more work to do before resuming the uptrend. I like that LTC is respecting the Orange line, but I can't see that as any part of the C&H formation. What is notable is that if LTC begins to break down below the Orange trendline, I will have to reassess this C&H formation. That is because the handle shouldn't be too deep into the cup for the pattern to be valid. Going below Orange will have retraced the cup too much and may invalidate the pattern.
Trade Safe!
Trade Safe!
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.