02/09/2018

Lets start with some common terminology we will be using:

RSI - RSI stands for "Relative Strength Index" - Rated from 0 to 100, RSI helps to determine if something has been oversold (too much has gone out for its value), overbought (too much put in for its value), or is alright. An RSI of 50 is good, anything below 40 heavily indicates a buying culture, whereas anything above 70 indicates a heavy selling culture.

MACD - Moving Average Convergence Divergence - This is gathered by subtracting the EMA (Exponential Moving Average) 26 by the EMA (Exponential Moving Average) 12. Positive numbers are good, negative numbers are bad.

FOMO - Fear of missing out. The fear that you will miss a major upswing and not profit.

Bollinger Bands - The highest high and lowest low we should conceptually see in an extreme bull or bear market on any given day. It is 2 standard deviations away from a simple moving average, or SMA. 

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Lets talk about the above photo. At the time of this article, LTC sits at 160 to 161 USD.

  1.  The RSI for the above is currently sitting below the 50 that we talked about, however it is close (47) -- While the buy rates are trending upward, there is potential for a resurgence back down to being undersold. For those holding LTC, this is a good time to continue HODLing your coinage, as its valuation should increase short term. For those looking to purchase in or buy more -- buyer beware. The RSI is a decent indicator of what is to come, and when it is hard to predict where the RSI is going, it's hard to say where the price is going. If you are in for the short term to take small profits, I would suggest waiting for 155 or 150 to repurchase. If you are long term, we are still quite a ways down from last month, and therefore buying at this point in time is not a bad option -- as on a long enough timeline LTCs valuation has been increasing.
  2. MACD - The MACD lines are converged and starting to trend upward, at a very slow rate. Now, looking at this chart you'll see they were extremely positive, and sloped downward for an extended period of time. This was caused by the spike we saw months ago from 100 USD to 420 USD -- an extreme outlier. At this point in time, we have come close to -- or finished -- recovering from that extreme high (think of it like a drug, you have an extreme high followed by an extreme low). The indication here is a bit murky as well, as the lines are staying rather close together, and are still negative. However, an upturn in the following days could dictate a major upswing for LTC, this time at a slower and healthier rate.
  3. Today's Bollinger Band upper is market at almost 200 USD, with 120 for the low. At the time of writing, we have no concerns to speak of in regard to these bands, and there is no reason to think we are breaking either one today.

 

I AM: Seth Mischo - a college graduate with a degree in Finance and Business Management. A day-trader and hodler in cryptocurrency since 2013.