Crypto-Currencies: Bitcoin, Litecoin and Ethereum for January 28th

Crypto-Currencies: Bitcoin, Litecoin and Ethereum for January 28th

Crypto-Currencies are now main stream trading instruments so and I am providing charts here on a weekly basis.. I plan to cover just three cryptos, Bitcoin, Litecoin and Ethereum. The point of this weekly post is to show the crowd psychology behind the price movement  to find profitable trades among these instruments.

BTC broke lower and penetrated the third standard deviation bollinger two weeks ago, has rallied and has back tested the second standard deviation bollinger band.  I am expecting a rally from here and Monday is a turn date on my cycle system. This is the first time I am trying a cycle date on Bitcoin so this is a bit of an experiment. We will see how it performs.  I am expecting a conversion of the middle band this week.

ETHUSD has completed its wave 4 in black is is starting its next legg higher, I am expecting the low from last week to hold. Convert the middle band and I am expecting the start of wave 3.

LTCUSD is behind and lagging the other two in the next 5 wave sequence. I am expecting it to play catchup this week. Break the trendline  and we should see a completion of wave 1 around the 252 area.

The ratio charts below show parity between these three instruments. The LTCBTC chart has formed a triangle which should call price higher which means LTC should outperform BTC in the coming weeks.

More to come next week. I am most interested in the first cycle date on BTC – if this methodology tworks, I will expand the coverage to the other charts next week.

 

About the Author

Stan Nabozny
Stan is a 20 year retail trading veteran and Co-Founder of The Art of Chart. His specialties include using futures and options to trade Commodities, Equities, Currencies, Precious Metals and Bonds. Stan believes that Risk Management and Trader Psychology are more important that technical analysis and spends his time teaching and coaching other traders on these topics . Stan uses various trading systems and technical analysis approaches that integrate time and price in his work. See his latest articles here and www.huffingtonpost.com.

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