$PUMP has had 5 consecutive bearish daily candles, down a cumulative 16.98% over that period. So far today, it’s up 0.65%.
Let’s use this number to break down consecutive bullish and bearish candles.
A long streak doesn’t tell you whether tomorrow’s candle will be bullish or bearish. Thinking that after so many days, it must be time for a reversal is a common misconception.
After a string of candles moving in the same direction, prices have often already moved well away from the short-term moving average, so a pullback toward the average is not unusual.
Learning to read indicators isn’t hard. The hard part is still following the rules when the market is at an extreme.
Let’s use this number to break down consecutive bullish and bearish candles.
A long streak doesn’t tell you whether tomorrow’s candle will be bullish or bearish. Thinking that after so many days, it must be time for a reversal is a common misconception.
After a string of candles moving in the same direction, prices have often already moved well away from the short-term moving average, so a pullback toward the average is not unusual.
Learning to read indicators isn’t hard. The hard part is still following the rules when the market is at an extreme.