Facebook
 
 

23.02.202114:18 Forex Analysis & Reviews: Forecast for Litecoin on February 23, 2021 – BUY SELL. Monthly gain +10.93%

Exchange Rates 23.02.2021 analysis

1. LTC/USDT volume analysis on the Binance Exchange.

2. Analysis of the long-term trend.

3. Analysis of the medium-term trend.

4. Analysis of the short-term trend

5. Japanese candlestick analysis.

6. Conclusions.

7.Statistics.

1. LTC/USDT volume analysis on the Binance Exchange.

In this analysis, we will use the data on horizontal trading volumes from the Binance Exchange on the daily charts. The analysis is based on the footprint-profile theory. According to it, the direction of the level with the highest traded volume during the day can indicate the possible direction of the trend. The level with the highest traded volume is the level where the maximum number of transactions was made. This is the level of major market players. Accordingly, if the maximum volume level moves higher, this indicates an uptrend. A downward movement of this level indicates a downtrend. Chaotic movement signals that the market is trading flat.

21.02.21 – The level of the maximum traded volume (POC – PointOfControl) – 225

22.02.21 – The level of the maximum traded volume (POC – PointOfControl) – 201

POC has moved lower, and the price is holding below the POC level. A sideways movement has started, so you can go both long and short.

2. Analysis of the long-term trend.

A trend is your friend. Many traders know this saying but do not know how to use it. The answer is simple: trade only in the direction of the trend. This way, your trades will have more profit potential with less risk. The classic Dow Theory describes three main trends:

long-term;

medium-term;

short-term.

You need to analyze these trends before opening any trade. This is what we are going to do in the analysis below.

A long-term trend is a trend on the daily chart. Trades will be opened on the daily time frame and held for several days. The analysis of the daily trend is carried out with the help of the EMA(48), an exponential moving average with a period of 48. If the daily candlestick closes above the EMA (48), then we have an uptrend and we should open buy positions. If the daily candlestick closes below the EMA (48), then there is a downtrend and we should go short.

Exchange Rates 23.02.2021 analysis

The price is holding at the EMA(48). There is a sideways movement, so you can both buy and sell.

3. Analysis of the medium-term trend.

In our analysis, a medium-term trend will be the trend on the 4-hour chart (H4). EMA(48), an exponential moving average with a period of 48, will also be used for analysis. If the H4 candlestick closes above the EMA(48), then we have an uptrend and we should open buy positions. If the H4 candlestick closes below the EMA(48), then there is a downtrend and we should go short.

Exchange Rates 23.02.2021 analysis

The price is located below the EMA(48). The medium-term trend is moving down, so you can open short positions.

4. Analysis of the short-term trend.

A short-term trend that can also show an entry point into the market is considered a trend on the H1 time frame. Here, we will again use the EMA(48), an exponential moving average with a period of 48. If the H1 candlestick closes above the EMA(48), then there is an uptrend and you should open buy positions. If the H1 candlestick closes below the EMA(48), then there is a downtrend and you should go short.

Exchange Rates 23.02.2021 analysis

The price is below the EMA (48). the short-term trend is moving down, so you can go short. The long-term, medium-term and short-term trends are moving in different directions.

5. Japanese candlestick analysis. The Japanese candlestick analysis is applied to the daily time frame. In this analysis, we will also analyze the daily candlestick.

Exchange Rates 23.02.2021 analysis

The daily candlestick marked with black closed lower. Its low is located below the low of the previous candlestick. The candlestick pattern is in the from of a hammer pointing to the upside. The price has broken through the low of yesterday's candlestick. A flat movement is very likely.

6. Conclusion:

1. Volume analysis BUY SELL

2. Long-term trend BUY SELL

3. Medium-term trend SELL

4. Short-term trend SELL

5. Japanese candlestick analysis BUY SELL

General conclusion: On February 23, 2021, you can go long and short

7. Statistics

To analyze the effectiveness of this approach, we will keep the data on completed transactions. We prepare forecasts and open our trades on four major instruments: Bitcoin, Ethereum, Litecoin, and BCH/USD. Please, check other articles regarding this topic.

We gained +10.93% in February 2021

Statement:

Exchange Rates 23.02.2021 analysis

The trade from 18.02.21 on Litecoin BUY: 229.53 SL: 198.77, closed with a Stop Loss with the gain of 1%.

We do not open a new trade as the current situation is uncertain in the market. When opening new positions, you should place Stop Loss beyond the daily extreme points. Do not place Take Profit, as we will continue to move Stop Loss beyond the extreme points in the future sessions. Since the trade is carried out on the daily charts, the recommendation remains relevant throughout the day.

Trade with the trend and you will gain profit!

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Maxim Petrov,
Analytical expert
InstaForex Group © 2007-2021
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
Can't speak right now?
Ask your question in the chat.