LTR (ASX) New TA/Charting

Hi all,

There was a bit of talk around the fun topic of time-frames, and LTR is a good example of how charts for different time-frames can give you information that can support and reinforce the other time-frames, or sometimes conflict with each other. It's all good info and can help inform decisions. The principles of multi time-frame analysis are relevant and valuable to anybody trying to read a chart, no matter what your investment horizon or time-frame you are operating in. So for some some Sunday afternoon reading infotainment, here's a Monthly, Weekly and Daily chart with some commentary.

The Monthly chart clearly shows LTR in a long term multi-year uptrend, which increased in strength after the Covid lows. After accelerating above the long term channel, the "recent" extended sideways consolidation has price coming back to the upper range of the long term channel. Price has rounded off but the next move up could register a bullish hidden divergence to suggest an attempt at clearing the ATH. We just have to wait for the current bar to complete in another 3 weeks on this crazy time-frame.

The Weekly chart is the first time-frame I look at to draw horizontal levels, volume shelves, channels and other such scratchings, and this time-frame is a lot more bearish compared with the monthly or the daily at the moment. Not only does the sideways consolidation fit perfectly in to a Wyckoff distribution schematic as posted by @Cabbie the other day, but since making an ATH (which just about qualifies as a triple top), price has failed to make a Higher Low or Higher High. On top of that price has formed a bearish Quasimodo (or "Over and Under") pattern, which is a rare kind of wonky head and shoulders. I'm cheating a bit because like a H&S the Quasimodo tends to play out more often at the top of an extended run, however it's a cool name for a pattern and they are rare so any excuse to include it is valid. The main difference in trading a Quasimodo is that you are meant to enter just after the right shoulder is formed, rather than the break down through the neckline of a H&S, so perhaps short traders should be jumping in about now, but then again they don't seem to need any specific charting excuse to enter at the moment.

Despite looking fairly innocuous on the Monthly chart, the last 12 months or so has seen some strong very trade-able moves in both directions with some clear and consistent levels. The strong move up from July to November ended up resolving with an ascending wedge break down, and left behind a volume shelf marked with the yellow box that has already proven to be an area of supply that price will need to conquer. Price is close to the next level below and is marked by the yellow eggs, and while momentum has flat-lined on the weekly, we can look at the daily to get another view...

And finally I'm going to pontificate my little tail-feathers off about the ministronies of the Daily chart - err or maybe something to that effect. Obviously day traders will be watching much lower time-frames, but will also look at relatively higher time-frames to assess the major trend or do the same type of comparisons we are doing here. I like to check out the Hourly and 15 minute chart every now and again when I want to get a bit forensic with the moves of the Daily chart.

So price has made the higher low then higher high that @W3hunter was looking for so qualifies as a short term uptrend. There was obvious demand appear in the yellow egg zone while making that crazy reversal bar to register the HL and then break up through the previous pivot high. That's all good, however price was pretty strongly rejected once it hit the yellow box level, and after getting a bit tangled up between the previous break out level and the flattening 50 and 200 EMA's price has come down to check out the egg zone again. So we're looking for some hints at a bounce off (or from within) the yellow egg to confirm that demand is still there, which will register another higher low on the daily, register a bullish hidden divergence on the daily and force a higher low on the weekly, and begin the wave (iii) that @FlashPoint is looking for.

Good luck all.