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LTCUSD to possibly continue selling off: Short tf (4hr) analysis

I have updated and used the Elliott wave principle in this post to model the price action of LTCUSD. Chart patterns for LTCUSD annotated and the comments I gave can be found here.

LTC graph

Currently, LTCUSD is shaping up as a double zigzag Elliott wave structure (A-B-C-X-A-B-C). The implication of this is that the minimum target for LTCUSD is the price low of ~$106.52 made on Feb. 6,2018.

I have also indicated a possible entry point on the chart as I expect a quick bounce to the $201 area after which price should continue downwards.

POI = (Point of invalidation) i.e. I do not want to see price of LTCUSD close above ~$214. Price close above $214 would warrant a review of this analysis.

Using the ideal scenario above gives a risk of ~ $13 (i.e. $214 – $201)

Using the low of Feb. 6, 2018 as target for profit, reward= $201 – 106 = $95

Risk/reward ratio= $95/$13 = ~7.3:1

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