Forex Education Articles

How to Trade Litecoin CFDs

Most traders know about Bitcoin, that will be regarded because the most “Gold” of all crypto currencies. But not everybody knows the additional cryptos exist also. For example, from the crypto environment, the comparable to “Silver” is known as “Litecoin”.

Litecoin (LTC) could be traded under the US Dollar (USD), and it is a crypto pair known as
LTC/USD. This guide may review this monetary tool and the way that it is able to be traded. It is going to even review technical investigation, amount movement, expected volatility, and also the way that traders may trade Litecoin on MetaTrader 4.

Litecoin art 2
Source: Litecoin vs US Dollar (LTC/USD) daily graph from 1-3 March to 1-3 July 2017

Is Litecoin Volatile?

The brief answer is straightforward: Litecoin CFDs are volatile and reveal strong amount motions. Even the LTC/USD crypto set indicates solid momentum, also it has seen a considerable gain in its ordinary amount selection. It becomes readily observable once you insert the Average True Range (ATR) index to the weekly graph (price 10). From the graph down from the ATR value has climbed in the value of roughly 0.05 to a top of almost 1 10, and it is an important gain in its own yearly selection.

Current vs. Historical Price: Trending or Ranging?

Taking a look at previous decades, traders may realize that the LTC/USD pair revealed strong momentum in 2013 and 2014, prior to moving to a miniature ‘winter sleep’ throughout 2015 and 2016 (see image above).

The set is alert and also a slow down looks unlikely any time in the future, slightly not with the gained care that the crypto currency world is receiving right now.

A recognized tendency isn’t yet observable on higher time frames whilst the LTC/USD set is chiefly showing spontaneous amount actions. But on lesser timeframes like the 4 hour graph, a very clear tendency is observable and actionable. The graph down from shows how traders can categorize and handle this type of graph or some thing similar later on.

Obviously, if the tendency stays intact Is Dependent upon How close amount Extends into the immunity zone in 50-55, which can be just one Reason Swissfxtrading offers constant
Live webinars consequently traders may keep uptodate with the majority of up to date events, technical and trends investigation.

Litecoin art 2
Source: Litecoin vs US Dollar (LTC/USD) 4 hour graph in 12 May to 13 July 2017

How to Trade Litecoin CFDs

Trading Litecoin is most likely much different than investing in a currency set, commodity or CFD. After coming the fiscal stores, it’s also essential to bear in your mind that traders are ready before entering some trade installments.

You can wonder, what exactly does good prep appear to be?

Traders must be aware of three big factors before handling the stores. All three elements are all critical since they encourage eachother and something weak connection could cause failure. These parts are:

  1. trading plan;
  2. trading psychology;
  3. risk management.

A trading plan or trading program is equally crucial since it enables traders to understand just how and when to handle the monetary stores. It offers a plan which applications to use and explains of which minutes the chances can be piled in their favor so when not.

Trading psychology is essential because risking RealMoney will impact your nerves and potentially produce anxiety and also a possible roller coaster of emotions. Trading psychology makes it possible for traders to invent a suitable reply and enables them handle all these types of situations.

Risk management is crucial. It enables traders to safeguard their capital, and it is necessary to get into the economic stores. Without appropriate risk management, traders often to over risk using a single or even perhaps a couple of of trade set ups, which might cause large losses and draw downs. Watch the video down from to learn additional information (English only).

Which Strategy Should You Use to Trade Litecoin?

You will find three well known approaches for upcoming the fiscal stores :

  1. technical evaluation;
  2. basic analysis and trading together with comprehension of this information;
  3. tide investigation.

Technical analysis gives an superb principle about the best way best to analyse and detect trade set ups with amount actions, candlestick patterns, or technical indicators. Some traders simply utilize candlesticks to make their own conclusions, where as many others fully concentrate on indexes and tools. It’s also feasible to make use of an assortment of price actions and candlesticks in conjunction with tools and indicators.

Fundamental investigation or news trading may also be techniques utilized for handling the stores. These traders review that the financial statistics of each and every provider, country, money bloc – or, even in the instance of all Litecoin, crypto-news – to measure the future possibility of their money.

Wave investigation is an alternate means that a number of traders decide to make use of to assist them comprehend structure of their monetary stores. Wave investigation is centered upon the Elliott Wave Theory, which explains the way a trader and store psychology impact store behavior and amount routines.

All 3 techniques are all both valid and traders may also opt to combine two or even three of these for a full time strategy. It truly is dependent upon the taste of each and every trader also it helps make sense to use various approaches to find what fits best with your own trading style.

In all scenarios, an integral component would be to prepare a trading program, no matter which way a trader finally selects. This trading program has to explain, in simple words, the way the trader should approach their investigation, admissions, trade direction, and exits.

How to Day Trade Litecoin for Profit

When day trading Litecoin (LTC) versus the US Dollar (USD), it is a good practice to use technical analysis on multiple frames rather than fundamental analysis, which is mostly applied on higher time frames, and wave analysis, which is a more advanced strategy.

Technical analysis allows traders to build varied trading strategies based on candles, amount action, and technical indicators. There is therefore a wide range of options to build a trading method that matches your own unique style. More is explained in the video down from which discusses trading systems and methods based on indicators (English only).

One particular strategy traders often-[ enjoy using is mixing one higher time frame chart with two lower ones for a balanced view of the stores. Here is how:

  1. Higher time frame like a daily chart: this is useful to spot key support and resistance levels and understand the overall store structure.
  2. Medium time frame like a 1 hour chart: this shows the immediate trend, momentum, and key patterns and is used to choose the best direction for trading.
  3. Lower time frame like a 15 minute chart: once the two higher time frames show a ‘green-light ‘, traders can hunt for trading opportunities on lower time frames, which provides a detailed view on how traders could enter a trade setup.

MetaTrader 4 Supreme Edition provides traders with extra help to analyse and tackle the stores. This free package is an extra plugin on top of the standard MetaTrader 4, featuring 60 extra features. It offers trade and risk management solutions, a full package of indicators, different types of charts, a trading simulator and many, many more.

Can Traders Make a Return on Their Investment With LTC/USD CFDs?

Yes, traders can profit from the store volatility of the LTC/USD pair, like other financial instruments, to earn pips and a return on their investment. There is little difference medially trading the EUR/USD, USD/JPY or LTC/USD from this perspective.

It is important to keep in mind that the pair of financial instruments does not have high spreads and shows decent volatility and amount movement. After that, it is really up to the trader to find a chart and/or system that suits them well and matches their trading style.

Market Sentiment: Is Litecoin Trading as Appealing as Bitcoin?

Yes, traders can trade Litecoin CFDs just as easily as they can trade Bitcoin CFDs. Both crypto pairs show impulsive amount action, which can be analysed and traded. In the image down from traders can see amount action on both pairs during the equal period of time.

Litecoin art 2
Source: BTC/USD on the left and LTC/USD on the right, both parts showing 4 hour charts from 8 June to 14 July 2017

Trading LTC and Other Cryptocurrency CFDs

Besides trading Litecoin versus the US Dollar (
LTC/USD), Swissfxtrading traders can also trade Bitcoin vs. the US Dollar (BTC/USD), Ethereum vs. US Dollar (ETH/USD), Ripple vs. US Dollar (XRP/USD) and Bitcoin Cash vs. the US Dollar (BCH/USD).

Trading Litecoin Using MetaTrader 4

It’s possible to trade cryptocurrencies with Swissfxtrading, including Litecoin versus the US Dollar (LTC/USD). Traders can access LTC/USD and other crypto pairs via both the MetaTrader 4 and
MetaTrader 4 Supreme Edition platform.

The process is as simple as this:

  1. Download/open MetaTrader 4
  2. Open a new account or login to your existing account
  3. Open a cryptocurrency chart

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