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Greeting everyone, How are you all doing? I welcome you to the Third week of the crypto academy trading contest. This week, we will be focusing on what we have learned so far from our previous lessons to carry out real Crypto trading. I will be joining professor @pelon53 this week on the "Investor Team".
In today's, I get to explain to you how I was able to execute a Short trade of the crypto pair LTC/USDT using Binance Perpetuals on the 1 min chart timeframe, combined with the help of support and resistance level, and as well with the TRIMA indicator and Stochastic indicator strategy.
I will also explain the Litecoin analysis, both (Fundamental and Technical) which I made before I carried on my trade. HAPPY READING!!!.
The Name of the Token I will be analyzing today is the LTC otherwise known as Litecoin.
Litecoin is a decentralized cryptocurrency that was created in a similar way to features of bitcoin, the coin was considered a lite version of BTC has it has moderated version of BTC, the Litecoin as well uses a Proof of Work consensus to arrive at block validity, the Litecoin boasts of better performance in a transaction than that of bitcoin, the LTC can transact at a very fast speed with a low gas fee, the litecoin validates new block every 2.5 minutes whereas bitcoin does in 10 minutes.
Litecoin was founded by Charlie Lee who happens to be a former Google employee, who created litecoin in October 2011, just like BTC, litecoin as well does it halving every four years and the last halving of LTC occurred In 2019 where miners are now rewarded 2019 LTC on each block, which does occur after every 840,000 blocks.
Litecoin Analysis:
Litecoin is currently ranked 20th on coinmarketcap, at the price of $125.89, and a market capitalization of $8,802,176,683, and the market has been up by 2.74% since the past 24hrs, LTC has a circling supply of 69,919,631 LTC, and the Total supply of 84,000,000 LTC, at the Maximum Supply of 84,000,000 LTC.
Litecoin has been known as one of the cryptocurrencies that have the largest fiat currency trades after bitcoin and can be traded on exchanges such as Binance, Coinbase, gate.io, Kucoin with several crypto pairs.
Litecoin is been popularly known for its achievement in the crypto world has it has a similar feature with the BTC, the Litecoin been regarded as the silver of crypto, the crypto project has been a success in the past years, as the litecoin tends to have a low transaction fee and as well allow the exchanges of several fiat pairs and its mostly found on more exchange, I am more optimism that the LTC can still rise above the $100 in a matter of days as we have seen the coin to be depicting higher highs for the past days.
I as well believe we get to see a great movement in the bullish movement of LTC as we have seen the LTC to have once reached the all-time high of $412.96 as of May 10, 2021, which was a year ago, crypto as a way of repeating itself, and we can see a similar feature by April this month or likely the coin might surpass the amount anytime sooner.
I will be carrying my analysis on https://tradingview.com, while my trade will be executed on Binance futures. I will be conjoining my analysis of the Triangular moving average indicator and the Stochastic indicator which am more familiar with.
The TRIMA indicator work in a similar way same as the EMA as the moving indicator display the purchasing or selling amount using lines, when the TRIMA is moving below the market shows the market is bullish, and while the TRIMA is moving above shows a bearish market, the stochastic indicator as well uses a lower and upper band to depicts oversold and overbought region, when the market is at lower band shows that market is now oversold, while when the market is at upper band shows the market is now overbought.
15 min analysis - What I did first was to analyze my trade on 15 min chart, from the 15min, I was able to identify a bearish market as I saw that the market is now below the TRIMA indicator and depicting red candles, the Stochastic as well shows that %D line has crossed the %K line, meaning the fast have crosse the slow line, which shows a downtrend and they are at oversold region.
5 min chart: - On the 5 min chart, I was able to see the same movement has the market s now moving the bearish movement, the market is still traveling below the TRIMA, the Stochastic is still at its oversold region meaning sellers are still dominating the market at the moment.
1 min chart: - I would be carrying my trade on the 1min chart, from here, On the 1 min chart, I was able to see the same movement as the market is now moving the bullish movement, but when it got to the TRIMA's, it retraces and bounce back to the bottom, here on, the stochastic has gotten to the overbought region where those that bought at the oversold region would now be willing to sell causing the market to want to pick a new bearish direction.
I pick my position early as I saw that the market has now picked a new movement of bearish after retracing from its opposing movement, and I am about to witness a new support and resistance level, I too my entry to sell at the resistance level when I saw that the market was about to retrace back to bearish, then my stop loss was set above my entry and the take profit below, the order was executed at 1:1 risk-reward ratio.
After my analysis from tradingview, I launch the binance app and took my entry to sell LTC at the price of $124.9, and my Take profit was at $124.2, then my Stop loss was at $125.6.
A few minutes later, the market is moving well and I was an ROE of +0.86% at $0.03 profit at Cross 12x!!! leverage.
Nop, I do not plan on holding the LTC for long, the coin has been fluctuating in a couple of days and it might be risking to purchase and hold on to, the coin as well is too expensive for my type of analysis, the LTC was once at $400 last year, which means the coin has dropped drastically, so holding on to the LTC might not be a piece of solid financial advice for now.
What I am practically doing is scalping trading where I short the litecoin for some time when my take profit hit or stop loss hit, I had sold the coin and made my profit and then leave the market as soon as I can.
I would not recommend anyone to but the litecoin, but those willing to take the risk can still go on, provided they are not planning to risk what they can not afford to lose, despite that the coin is a lite version of BTC, I expect much movement and more regards from it, the litecoin has been around since 2011, I am still surprised by the price which the coin still is, I believe the management has not been solid to there expectation.
The LTC was created to be quarterly in the amount of BTC, which as we could see they are not a bit close, but this is crypto, anything is bound to happen but traders who are willing to buy the litecoin need to be careful with their investment purpose.
Other information regarding litecoin can be found on their official website https://litecoin.com/en/, where you get to buy the litecoin, see the current news, an update regarding the LTC.
Here comes my conclusion on the analysis of Litecoin where I have given a detailed analysis of how I was able to identify a sell entry on the 1 min chart of LTCUSDT, the litecoin is a decentralized cryptocurrency that has similar features as bitcoin, as they both use the Proof of work consensus.
Special mention to professor @pelon53, for carrying on the Team Investor, it's an honor to be part of your team for the week.
Steemit Cryptography Student: