Can you read a chart?

Discussion in 'Trading' started by wareco, Jan 30, 2007.

  1. Flat. Sorry, I'd wait until the afternoon to trade it!
  2. nkhoi

    nkhoi Moderator

  3. Long.
  4. Mvic


    not enough info
  5. LOL!
    So far you got a SHORT, a LONG, a FLAT, and NOT ENOUGH INFO!

    I go w/ the last post along with mine. FLAT, cuz there's NOT ENOUGH INFO!
  6. Well obviously you have a 50-50 chance of getting it right. How about some reasoning behind your choice? I'm looking for some discussion, not just a long/short prediction.
  7. Leonidas


    To be honest, I wouldn't trade on where this price will go from five bars, that's crazy, but I can tell you what I do see from eyeballing it.

    Price spikes up, there's a gravestone doji showing sellers coming into the market, and then we see a price decline, a 4 bar congestion period, and another symmetrical thrust down. Both legs were the same size, in other words. I labeled those points as A, B, C, and D.

    Price covered that distance in half the time in the second leg down, though, so it appears it accelerated.

    It also broke the previous swing low, so that's another indication of weakness or trend change.

    My guess would be that we will either see a retracement in the next five bars, or another 4 bar congestion period with a thrust down. But that's all it is, a guess, but more specific than "long" or "short."

    I marked your chart up here:

  8. I wouldn't trade a chart like that with not enough info, its like trading an ipo chart, I would want the 10day,20day and 30 day to see if that candle was at some support or was it after a long run, I think you have to know the long term picture to see where support and resistance might be, and use the shorter term charts for entries and exits, gives a better view on wether to stay for a longer term gain or a quick trade

    its like going out on a summer day at 1:00 and its hot and dark clouds are above and a storm is coming and your palnning a q at 5:00, if you look back on the weather chart and see that the storm in your area is only a small patch of clouds passing over then go long the q, but if its covering nj and pa then maybe you better change your plans

    just my opinion but I like to see where its been
  9. I think it blew all those stops there and will bounce but I am just guessing.

    #10     Jan 30, 2007