OK, noob question… Take a look at this chart all the way on the right out of nowhere volume explodes and the candle shoots up, followed by another candle with a higher move but not quite as explosive you don’t see hair is after that event price comes back down to where it was. What the hell is that? Besides a big buyer coming in.
Happens all the time. That’s not healthy price action. The size of the 1st candle is bigger than the 2nd while there is more volume inside the 2nd candle. It means there was supply absorbing the effort. We can see an area of resistance around 52.5. It’s a danger sign. But the price didn’t breakdown, For me it’s still in play. What ticker is it ?
Huh?? That usually happens at the top, no? Have you ever heard of "bottoming" or "basing"? Once it breaks out of the range, you will see a burst like this. BTW THAT'S DUE TO MOSTLY STOPS PLACED JUST ABOVE THE RANGE. HENCE WHY YOU SEE IT COME RIGHT BACK DOWN.
%% LOOKS like they are buying that bear rally @$52 area much more than his blue moving average; but a good ma to use to get chopped up + waste money. May haVe been a good blue ma buy, if it pays a dividend +@ 8 ;30 or 9;30 CST, but thats hindsight bias
Actually it was SQQQ Didn't REALIZE THE TIXKER WASNT IN THE SCREENSHOT I did look at QQQ and it was the same thing in reverse. So I guess that doesn’t bode well for this rally, which we already knew LOL Thanks for the explanation. I was already out of it at the time this happened, was looking for a recently. But haven’t taken it yet. I think this rally is already long in tooth, after onky two days
Blue MA is the anchored VWAP. (Anchored to the June low). I don’t use it on this (one minute) time frame, and don’t use it to much otherwise. when I’m doing a short term trade I like to watch the 23 MA it has helped me get on a trend. Very short term
Based on your stockchart, there is strong overhead resistance @ $52.50. Remember, those who bought at higher prices are all losers so, trying to get out with some of their monies back. Selling at resistance makes perfect sense for them. It will be hard to go higher because you have waves upon waves of sellers waiting to get out @ $52.50.
yup, I get that. And yet, that was a one minute chart. Below is the daily chart of the same ETF, and it seems to me that resistance is more like 57.50 ish or maybe even 60? What say you ?