FX.co ★ Triangle pattern in LTCUSD

LTCUSD is trading at $185. Price has formed a triangle pattern the last 3 days and this can be seen clearly in the 4 hour chart. Short-term traders need to be patient and wait for the break out. Triangle patterns are usually found near the end of trends.

Red lines - size of expected move depending on break out direction

LTCUSD trend remains bullish as price continues making higher highs and higher lows. The most likely outcome would be for the triangle to break to the upside. If this happens then we should expect a sharp move towards $215. If the triangle breaks to the downside we should expect a pull back towards $155. For now we focus on the triangle boundaries at $191 and at $178.50. A break out of these boundaries will give us the clue of the direction price will follow in the near term.