Litecoin, and the "Falling Three Methods Candlestick Pattern"

On November 27th, 2023 the “Collapse to $30” idea was published (below). The idea was met with some rebuttal, shall we say.

The evidence for a collapse in Litecoin price action has only grown in the past few months.

A new candle prints on the above 2-month chart in 14 days. If it prints as is, it will be a Gravestone DOJI. Such candlesticks on this timeframe represent significant profit taking and selling pressure.

The yellow arrows identify bearish engulfing candles. The last one printed on September 2023, confirming legacy support as resistance.

The print was followed by three green candles. Do you recognise them? And the red one that now follows it?

This candlestick pattern is called the “Falling Three Methods Candlestick Pattern”. It is a continuation pattern. When three Green candles in-between the bearish engulfing and DOJI are unable to close above the bearish engulfing candle, a significant sell off prints. Overall the pattern is informing you of the inherent weakness in price action.

Litecoin bulls, you’ve been warned!

Ww

Comment:

Litecoin bulls, you'll need to do something special in the remaining hours of this month to prevent the 2-month Gravestone DOJI candle from printing tomorrow.

2-month