Black Pipper

Forex Dreamers

Forecast based on horizontal volumes for Litecoin as of 05/31/21


1. Analysis of volumes by instrument LTCUSDT c exchange “Binance».

2. Analysis of the long-term trend.

3. Analysis of the medium-term trend.

4. Analysis of the short-term trend.

5. Japanese candlestick analysis.

6. Conclusions.

7. Statistics.

1. Analysis of volumes by instrument LTCUSDT c exchange “Binance».

The analysis uses data on horizontal volumes from the Binance exchange on daily charts. The analysis is based on the “Footprint-Profile” theory, in which the movement of the level of the maximum horizontal volume per day can indicate the likely direction of the trend. The maximum volume level is the level at which the maximum number of transactions was made, that is, the level of a large player. Accordingly, the upward movement of the maximum volume levels indicates an upward trend. A downward movement of the maximum volume level indicates a downtrend. Chaotic movement of the maximum volume levels indicates a flat in the market.

05/29/21 – Maximum horizontal volume level (РОС – Point Of Control) – 159

05/30/21 – Maximum horizontal volume level (РОС – Point Of Control) – 175

POC moved upwards, the price is below the POC level. The market is sideways, you can buy and sell.

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2. Analysis of the long-term trend.

Trend friend of the trader. Many traders know this saying but don’t know how to use it. The answer is simple: trade only in the direction of the trend. This way your trades will have more profit potential with less risk. According to classical Dow theory, there are three main trends:

long-term;

medium-term;

short.

It is all these trends that need to be analyzed before opening any deal. This is what we will do in this analysis.

Long-term trend in this analysis this is a daily trend. Deals will be executed on the daily timeframe and held for several days. Daily trend analysis is carried out using the EMA (48) exponential moving average with a period of 48. If the daily candle closed above the EMA (48), then we have an uptrend and we should buy. If the daily candle closed below the EMA (48), then the trend is downtrend and should be sold.

The price is below the EMA (48). The long-term trend is downtrend, so selling should be considered in this situation.

3. Analysis of the medium-term trend.

In this analysis, the medium-term trend will be the trend on the 4-hour chart (H4). EMA will also be used for analysis (48) exponential moving average with a period of 48. If the H4 candlestick closed above the EMA (48), then the trend is up and you should buy. If the H4 candlestick closed below the EMA (48), then the trend is downtrend and should be sold.

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The price is below the EMA (48). Medium-term trend is downtrend, you can sell.

4. Analysis of the short-term trend.

A short-term trend that can show the point of entry into the market well is a trend on the H1 timeframe. EMA will help us (48) exponential moving average with a period of 48. If the H1 candlestick closed above the EMA (48), then the trend is up and you should buy. If the H1 candlestick closed below the EMA (48), then the trend is downtrend and should be sold.

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EMA price (48). The short-term trend is sideways, you can buy and sell. Long-term, medium-term and short-term trends do not coincide.

5. Japanese candlestick analysis.

Classic Japanese candlestick analysis is applied to the daily timeframe. In this analysis, we will also analyze the daily candle.

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Closing of the daily candle upwards, the candlestick is white. The low is below the low of the previous candle. Candle configuration – Indefinite, no large body, no large shadows. You can buy and sell from a candlestick analysis point of view.

6. Conclusions.

  1. Volumetric analysis BUY SELL.
  2. Long-term trend SELL.
  3. Medium-term trend SELL .
  4. Short term trend BUY SELL.
  5. Japanese candlestick analysis BUY SELL.

General conclusion: 05/31/21 you can buy and sell as different types of analysis give different predictions.

7. Statistics.

To analyze the effectiveness of this approach, statistics are kept on completed transactions. Forecasts are made and transactions are made in four instruments: Bitcoin, Ethereum, Litecoin, BCHUSD. 10.4% yield in 3 months with a maximum drawdown of 4.88%. Statement:

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I do not open new deals on Litecoin in the market with uncertainty.

Risk per transaction 1% of the deposit. For new trades, the stop loss is located behind the daily extremum. We do not set the take profit, since we will accompany the transaction by moving the stop loss beyond the extremes of new days.

Since trading is carried out on daily charts, this recommendation is relevant throughout the day.

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