$PUMP ｜5 consecutive bearish candles on the daily chart｜Cumulative: -16.98%
Before looking at position sizing, first understand consecutive bullish and bearish candles.
Consecutive bullish or bearish candles only count the direction of a run of candles, not how much each one rises or falls: a few small bullish candles have very different momentum from a few large ones.
When trading volume rises steadily throughout a run of candles, it’s often seen as a sign of sustained participation; when volume gradually declines, it’s often seen as a sign that follow-through is weakening.
Working backward from where you place your stop-loss to determine your position size is much more reliable than going by feel.
Before looking at position sizing, first understand consecutive bullish and bearish candles.
Consecutive bullish or bearish candles only count the direction of a run of candles, not how much each one rises or falls: a few small bullish candles have very different momentum from a few large ones.
When trading volume rises steadily throughout a run of candles, it’s often seen as a sign of sustained participation; when volume gradually declines, it’s often seen as a sign that follow-through is weakening.
Working backward from where you place your stop-loss to determine your position size is much more reliable than going by feel.