$SNDK Are candlestick charts useful? Absolutely—they're an important reference when trading!
$MET They can't predict market movements outright, but they can reveal the intentions of major players.
$BSP Understand these three trading signals, and you'll be less likely to be led by the nose.
Signal 1: False breakdown, followed by a real rally
A plunge below support triggers panic, then big players scoop up shares and quickly push the price back up.
Check whether the price closes back above the level on the 1-hour chart. A breakdown accompanied by high volume, followed by a rebound on lower volume, is worth watching.
Signal 2: Price-volume divergence
A new high on declining volume may be a false boom. A sudden volume spike during sideways trading often means someone is quietly accumulating.
Signal 3: The danger of consolidating at highs
Sideways trading at the bottom can signal accumulation; sideways trading at the top can signal distribution.
Watch trading volume and whether bearish or bullish candles engulf previous candles.
Beginners, don't get caught up in predicting the market from a few candles. The key is understanding the battle between buyers and sellers.
Confirm your read with the broader trend and trading volume to improve your odds.
$MET They can't predict market movements outright, but they can reveal the intentions of major players.
$BSP Understand these three trading signals, and you'll be less likely to be led by the nose.
Signal 1: False breakdown, followed by a real rally
A plunge below support triggers panic, then big players scoop up shares and quickly push the price back up.
Check whether the price closes back above the level on the 1-hour chart. A breakdown accompanied by high volume, followed by a rebound on lower volume, is worth watching.
Signal 2: Price-volume divergence
A new high on declining volume may be a false boom. A sudden volume spike during sideways trading often means someone is quietly accumulating.
Signal 3: The danger of consolidating at highs
Sideways trading at the bottom can signal accumulation; sideways trading at the top can signal distribution.
Watch trading volume and whether bearish or bullish candles engulf previous candles.
Beginners, don't get caught up in predicting the market from a few candles. The key is understanding the battle between buyers and sellers.
Confirm your read with the broader trend and trading volume to improve your odds.