LTC/USD – Forecasting the wave (five) within second dimension correlation
One of the well known facts of the market are correlations between instruments. However that rule does not apply every time in every instrument. Here at Elliott Wave Forecast we call a first degree correlation when 2 instruments move together according to how they are related. For example everyone knows that if the USDX is weak then the counterparts like Gold or Cryptocurrencies need to move in the opposite direction. The opposite is called second dimension correlation. It occurs when the 2 correlated instruments do not move tick by tick the same and deviate the rule of first degree correlation. In this article we will see how we were able to forecast the wave (5) in LTCUSD while other cryptos remained weak.
LTCUSD 1 hour New York update 12.23.22
Litecoin was expected to start the next leg higher in wave (5) while above 61.15. While other related instruments were expected to remain weak. LTCUSD made the move higher and currently within wave 3 of (5). Let’s have a look on how it looks today.
LTC 1.10.23 1 hour Asia update
Now Litecoin is extending higher in wave ((iii)) of 3. Pullback soon in wave ((iv)) before ((v)) higher to end wave 3 in red. More upside should continue thereafter. As wave 4 in red pullback should find support for a wave 5 of (5) to end a larger degree cycle.
If you have a look at other related instruments the view looks different. This is because LTCUSD has been reacting in a second dimension correlation within it’s larger degree cycle.
Author
Elliott Wave Forecast Team
ElliottWave-Forecast.com
