I view Bitcoin as a long term hodling asset. For that reason I don't even attempt trading bitcoin. However, I like to trade stocks, options, and other crypto assets from time to time. One of the coins I have been trading the most lately has been Litecoin. I keep hearing more and more that it is better to hold Litcoin long term too, rather than trading. So while my initial plan was to trade Ltc, that account turned into a hodling account. I am still not sure how long I will hold them for though.
Among SMAs my favorite ones are 25-SMA and 50-SMA. I even have python scripts that run to make a report of which stocks crosses above or below those SMAs based on daily charts. I like the 50-SMA the most. It seems just trading based on 50-SMA could be advantageous. But I don't know. It is easier to say than actually execute based on strategies however simple they might be. There is always some other information coming in and distracting for one reason or the other.
But just looking only at 50-SMA, one can see the story of prices told over the time. Is 50-SMA really good or is it just an illusion. In any case, I often see this 50-SMA to be a support or resistance. Few days ago price of LTC went below 50-SMA on daily chart, so I figured that's it for now. Won't be selling LTC anytime soon.
The main reason I even started trading LTC is BTC. It seemed to me whenever BTC goes up, LTC and others follow and whenever BTC goes down, LTC and other follow. So I am trading LTC solely based on what I think will happen to BTC. Is it wrong kind of approach? I don't know. That's how I always look at it. I never really considered LTC on its own merits and fundaments.
Just looking at how LTC price broke below 50-SMA, my conclusion was - ok, it will continue going down.
But now I am looking at BTC. It is the first image above. The price is touching the 50-SMA line. Last time, it looks like this line did work as support and sent the price back up. Will it do the same this time? If it does I will have even higher respect for 50-SMA. :)
However, it is turns out to be a disappointment and BTC drop below that line, does it mean it is time for bears to party? I wouldn't be selling BTC anyway. But decisions need to be made about LTC.
I guess I will find out in couple of days if 50-SMA is something worth looking at when evaluating the crypto or stock charts. I might have just revealed my secret trading strategy. Don't tell anyone.
Do you use 50-SMA? What do you think?
P.S. I know nothing. I have zero knowledge or skills about investing and trading.
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STONKS! :)
The basic indicators I like to use are the Stochastic Relative Support Index on the daily chart for a basic idea of where we are going, and to buy in the lowest 10%. I like watching the MACD for crosses up to time bigger buys for shorter term trades. The 50 MA is good when you watch it crossing the 200 as a buying signal. I also love the simple math that price stays within the bollinger bands ~95% of the time
Otherwise, hodling seems to me the easiest manor of accumulating crypto when you measure it against fiat.
You will find your measurements that will, at best, give you an educated guess at what will happen for slightly better grasp of your investment.
When you progress past this, pls look me up and let me know!
50 MA crossed above 200 MA on a weekly chart for LTC last week. Yet dropped more.
There are so many things to consider even at the basic level as you mentioned above.
Thanks for sharing your approach to charts.
I will give 50 MA a chance to work as support for btc this last time. We will know in a couple of days. :)
Survey says: yep.
I need to subscribe to that survey.
The moving average working like a trend line. Bitcoin should move up.
I am a big fan of LTC too. It was the first cryptocurrency that I ever bought, so it will always hold a special place for me. I have them tucked away in a wallet right now. I don't know if I will ever part with them.
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I stopped trading when I sold (with intention to buy back) part of my ETH for ~850 and it went straight >1200 (in January). Now I just buy the dips :) If I have any fiat at the moment of the dip xD
I've been adding to my LTC since 2017. Trade it here and there, but overall more of a hold with taking advantage of large price swings. Always looking for when it's way outside of 50 day SMA for when to make trades.
Personally it's a better coin then BTC...don't really care what anyone thinks. BTC is just to expensive to do transactions in and purely is a store of value, yet a ton of money has flowed into it based on it being a viable monetary tool (think Tesla). In the end a coin like LTC or maybe Bitcoin Cash are better options for actual transactions do to speed and fees.
Sadly Hive nor Steem never positioned themselves as viable currency. The transaction speed and costs are pretty much unmatched. I actually sold a car for Steem a couple years ago to help build my account. Talk about a fast way to transfer funds, instantly in my wallet vs waiting around for who knows how long if things are congested for BTC.
Yes, Ltc is the top contender for use for daily purchase transactions. With Hive mostly being used as Hive Power, it’s hard to imagine it could become a widely used currency. Maybe HBD could. But that is also limited in supply.
Awesome P.S. outtro, why isn’t this a work yet?
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A good trading strategy learned from you. Thank you for the great kind of you.
It can only go up or down.