Candlestick Template Research to Evaluate Litecoin (LTC)
In recent years, cryptocurrencies have also been highly visible class of assets. Many investors sought to exploit growth potential. These cryptocurrencies include Litecoin (LTC), open source, peer cryptocurrency, which has become popular with both traders and investors. In this article, we will examine how to use candlestick models to evaluate Litecoin activities and make reasonable trade decisions.
What are candlestick patterns?
Candlestick models are a form of technical analysis used in stock market and cryptocurrency analysis to determine possible trends or amendment of price changes. These models consist of vertical lines reflecting each day of trading high, low, open and closed. Once specific candlestick models have been identified, traders can gain insight into the direction and strength of the trend.
Litecoin (LTC) Candlestick models
Litecoin has experienced several trends in recent years, and the cost of cryptocurrency has ranged from $ 40 to $ 300 per coin. To evaluate LTC performance using candlestick models, we will focus on four main models:
- Hammer Scripture
- Inverted hammer pattern
- Fun Star Model
- reverse head and shoulder (iHS) model
Hammer Scripture: Bear indicators
The hammer model consists of a small lower height followed by the small upper lowest. This model is considered a bull indicator because it shows that the price has changed its trend, which indicates a possible increase in prices.
To customize the hammer model on the Litecoin chart:
- List the new lowest part of the diagram.
- Draw the lowest height below the previous low.
- If another candle closes above this new low, the model is confirmed.
Inverted hammer model: Bears indicators
The inverted hammer pattern is similar to the traditional hammer model but has the opposite direction. It consists of two short lower heights, followed by a small upper height. This model is considered a bear because it shows that the price has changed its trend, which indicates a possible price reduction.
To customize the inverted hammer model on the Litecoin chart:
- Specify the two newest points of the chart.
- Draw a low high height above the previous low.
- If the other candle closes below this floor, the model is confirmed by a bear.
Shooting Star Model: Bears Indicators
The shooting star model consists of three lower lowest crises, followed by one upper height. This model is considered a bear because it shows that the price has changed its trend, which indicates a possible price reduction.
To customize the shooting star model on the Litecoin chart:
- Specify the three newest points of the chart.
- Draw the upper height above the previous low 10-20 candle intervals after each low low.
- If the other candle closes below this upper height, the model is confirmed by a bear.
reverse head and shoulder (IHS) model: Bears indicators
The IHS model consists of a small floor, followed by low. This model is considered a bear because it shows that the price has changed its trend, which indicates a possible price reduction.
To customize the IHS model on the Litecoin chart:
- Specify the new lower height of the chart.
- Draw the top height above this low point 10-20 candle intervals after each floor of the previous floor.
- If the other candle closes below this upper height, the model is confirmed by a bear.
Conclusion
Cryptocurrencies, such as Litecoin, have high price fluctuations, and the understanding of candlestick models can help merchants and investors make reasonable decisions.