LTCUSDT BUY | S6T3/ TEAM TRADING POST FOR FREDQUANTUM-KOUBA01 - TRADERS TEAM

Hello friends,

I am happy to welcome you to my last post for the trading week 3, and I believe we all had fun this week with our practicals.

Please join me as we begin.

This week, we shall be making research on the token "Litecoin".

Source

Litecoin can be explained to be a digital assest that was created to provide a secure, a fast and a low cost payment method by making effective use of the special features of a blockchain technology.

Litecoin was created just like BTC protocol but with a difference in it's hard cap, it's hash algorithm and in it's block transaction finality.

Litecoin has a block finality of 2.5 minutes and a very low transaction fee, thus making micro transactions very possible.

On the 7th of October 2011, on GitHub, there was a creation and release of litecoin through an open-source client.
And after 5days, litecoin went live.

After it's live performance, litecoin became widely accepted and has been rated among top20 cryptocurrencies by market cap.

Litecoin was created by a former Google employee named Charlie Lee, and his intention was to make litecoin a lite version of Bitcoin.

Charlie Lee, is also an early miner of BTC and also a computer scientist.
In the year 2015-2017, he was appointed as the director of engineering at coinbase.

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As seen above, litecoin can be traded on several exchanges and some of them are:

• Binance
• FTX
• Bybit
• Kucoin
• Gate.io
• Bitstamp
• Kraken etc.

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The following statistics are gotten from coinmarket cap from when this post was made.

I am so optimistic about this token today because it gave a unique signal that other tokens couldn't give, as at the time of analysis.

As I checked the market in search for tokens with affirmative signals, I came across litecoin and I Carried out my analysis using two technical Indicators, this will be further explained later.

Well, due to the high volatility of the cryptomarket, and the pending crisis between Russia and Ukraine, it will be difficult to predict how long this token can rise.

From the analysis I carried out, I can say that this token will rise for some time, and with this, I have set a good take profit position.

Inorder to carry out this task, being the most sensitive section, which has to do with live trade.
I will be carrying out the technical analysis on trading view and the live trade on my binance exchange.

Inorder to carry out this analysis, I will make use of two Indicators: The median Indicator and the Trix Indicator.

Median Indicator is a very effective trend based Indicator that helps to detect price action over a given period.

This Indicator helps to show the mean value between the low price point and the high price point of the market, over a given period.

This Indicator helps to signal a bullish trend and a bearish trend by the formation of green and purple coloured cloud respectively.

Inorder to identify a bullish market using the median Indicator, there ought to be the formation of a green coloured cloud, and to signify a buy signal, the candle ought to break above the green coloured cloud.

And inorder to identify a bearish market, there is always the formation of a purple coloured cloud and to signify a sell signal, the candle ought to break below the purple coloured cloud.

Please watch below and see how the median Indicator is applied.

^{SCREENSHOT FROM TRADING VIEW}

As seen above is a screenshot of LTCUSD on a 15min time frame.
There was a formation of green cloud which signifies the power of the bulls over the bears.
As I watched, I noticed that the Candlestick broke above the green cloud, which is a good buy signal, and this was accompanied by the formation of several bullish candles.

With this setup, I was convinced that the median Indicator is signaling a buy entry, but I can't use an indicator as a standalone tool for technical analysis, so I decided to confirm this signal using a different Indicator.

The Trix Indicator is another effective Indicator that acts as both an oscillator and a momentum Indicator.

The Trix Indicator helps to signal overbought and oversold regions of the market and it helps to detect trend reversals of the market.

The Trix Indicator consist of a Trix line and an horizontal zero line, which assist in it's trend prediction.

Whenever the Trix line crosses above it's zero horizontal line, it is signaling a buy entry and whenever it crosses below its zero horizontal line, it is signaling a sell entry.

Watch the Screenshot below for it's application.

^{SCREENSHOT FROM TRADING VIEW}

As seen from the screenshot above, after the median Indicator signaled a buy entry, I added the Trix Indicator, and as seen above, the Trix line just crossed above it's horizontal zero line, which is a confirmation of a buy signal.

With these confirmations, I entered the market and placed a buy order, I placed my stop loss below the support line of the price and my take profit was set in a way that I achieved a risk reward ratio of 1:2.

^{SCREENSHOT FROM TRADING VIEW}

I then proceeded to my binance exchange and placed a buy order on the pair LTCUSDT just as seen below

^{SCREENSHOT FROM BINANCE}

After some time, I proceeded to my chart to check it's progress, and I saw the market moving in my favor.

^{SCREENSHOT FROM TRADING VIEW}

I then proceeded to check my binance exchange and I noticed that the market had hit my take profit and I made a profit of $0.03384

^{SCREENSHOT FROM BINANCE}

Personally, as an intra-day trader, I do not plan to hold this token for a long time.

From my Analysis, I made use of a little time frame because I want my order to be executed on time.
So I placed my a tight stoploss and take profit, because I plan to be kicked out of the market immediately the price touches my take profit or stop loss.

As a retail trader, this token is a good one for long term investment.

As at when my analysis was made, the market signaled a very good buy opportunity.

And as at when my analysis was made, I wouldn't query anyone that decides to enter a buy market, but I will highly recommend that everyone should carry out their technical analysis and base their decision on the analysis made.

In a sentence, I wouldn't recommend anyone to buy because I refuse to be held responsible for any loss of funds.

The foundation of litecoin publicly announced it's Mimblewimble Extension Block [MWEB] upgrade on the 31st of January 2022, as part of litecoin 0.21.2 core.

This MWEB, being the biggest upgrade of the litecoin network, promises to increase litecoin scalability and also make fungibility available to all.

Litecoin is a very good token for investment as it happens to be one of the few cryptocurrencies that has a broad variety of trading pairs and it can be exchanged for euro[Eur], us dollar etc.

It is also a cryptocurrency that is very scalable and cost less for it's transactions.

Cc:
@kouba01
@fredquantum