Trade Recommendation: Litecoin
This trade recommendation is setting up quickly and requires prompt attention
This is a similar setup as the previous trading session recommendation I gave yesterday and is a short term trade with good risk reward ratio. You can see the ‘A’ up line is now higher than the previous trading session and hence this is our new buy trigger level. The bias remains to the upside for the short term with the price trading above the Daily Pivot Range (blue dots), therefore this level is key support.
The Daily Pivot Moving Averages are pointed upward and are bullish, while the 3 Day Rolling Pivot Range remains supportive (green, yellow dots) as it has tightened up to near current price range.
The action to take is to place a buy order to enter the market long if the market trades at or above the green ‘A’ up line for at least 15 minutes. Check your short term and/or 5 minute chart to verify. Place the stop loss at the Opening Range low and the profit target stated below.
Note: If triggered, look for the trade to play out over a period of 24-36 hours and if no significant move after 3 hours, exit the trade. Keep in mind the 3 hours is not a rule but a guideline as you will want to use discretion when managing the trade. One option is to move your stop loss up to breakeven (entry price) if the trade is triggered and the market moves up but then stalls and goes sideways.
Entry Price: 234.75
Stop Loss: 227.00
Profit Targets: First profit target 267.00. Second profit target 308.00. Once price reaches the first profit target raise the stop loss to breakeven. Then if the market follows through to higher levels manage the trade by trailing a stop loss 20 points behind until second profit target is reached or stopped out.
Disclaimer: The writer owns Litecoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.