The blue abc show how Litecoin's (LTC) price was just an oversold bounce. The correction is not complete in that this leaves the red E wave further down. The blue 1,2,3,4,5 represent the subwaves of the white (c) wave and it could range from $89 t0 $77. Meanwhile, the bull flag pattern is still valid because the red ABCDE waves remain valid.
The MACD has room for one more dip but at a higher low while price generates a lower low; and thus the positive divergence still remains. This lower low can wreak havoc on the weak hands and that's the exact intent in generating the process of a corrective bottom.
Legal Disclaimer: I am not a financial advisor nor is any content in this article presented as financial advice. The information provided in this blog post and any other posts that I make and any accompanying material is for informational purposes only. It should not be considered financial or investment advice of any kind. One should consult with a financial or investment professional to determine what may be best for your individual needs. Plain English: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.
Please consider reviewing these Tutorials on:
Elliott Wave Counting Tutorial #1
Elliott Wave Counting Tutorial #2
Elliott Wave Counting Tutorial #3
Laddering and Buy/Sell Setups.
Laddering Example with EOS
Tutorial on the use of Fibonacci & Elliott Waves
@haejin's Trading Nuggets
Essay: Is Technical Analysis a Quantum Event?