Swing Trades & The Maturation Of The Current Market
Analyzing Your Environment
Various assets, will at different times perform and react rather uniquely. Determining the state or phase of a particular market is imperative, in terms of establishing and securing your trading approach. Regular readers will be aware of the fact that I chose to sit on the sidelines in recent weeks, as I awaited what I refer to as “Chapter 1”.
This is where I believe the market to be in terms of its progress toward an all-new bull market. It’s a period of final accumulation, and even though there may be dips, confluence suggests upside be the predominant trajectory during the next six months. This, at least for me, provides renewed confidence in regard to swing trading.
In other words, opening long positions at this stage of the game implies subsequent profit. Corrections are likely to be momentary, and even though the market may at times edge lower, the trend has indeed shifted, signifying a momentary deviation, as opposed to an actual downward trend.
Personally, I would interpret any strong correction from this point on to be a potential entry for a swing long. Unless of course, the reasons for the correction are above and beyond what is considered to be a typical correction. I recently entered a swing-long position in anticipation of the Litecoin halving event.
Litecoin Swing Trade
My position is currently in profit by approximately 30% and I am looking to add to it on any significant drawdowns. There is still room for further upside, as Litecoin usually rallies all the way up until the actual date of the halving, which is approximately a month away. The asset usually enters a steep correction once the halving event has taken place.
Litecoin is currently experiencing a bit of a breather, after rallying beyond the $112 mark. As I am writing, LTC is trading at $107.10. Bitcoin is above $31K… and is setting the stage for another leg up for Litecoin. This is likely to kick in once this healthy correction runs its course. I don’t expect it to be too severe.
Final Thoughts
Personally, I wouldn’t mind one more drop down to $25K, and wouldn’t consider it an issue for already opened swing trades. Look at how quickly the market rebounded from the last drop to $25K from the $30K level. Every investor and trader needs to establish their own outlook in regard to the market.
These are my own personal views and should not be interpreted as financial advice. Happy and successful trading! See you next time. All the best!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
