5 Tips About Price Are Revealed
A skill that all traders need to hone and strive to improve constantly is how to read candlestick charts. Candlestick patterns of price matter. What price is doing tells a great deal about which Market Participant Groups are controlling price.
Understanding how to read candlestick charts is important, in that realizing 5 Tips about price are revealed when you know who is in control of price. The following are the 5 Tips about Price:
1. How Price will behave
2. How Price will react to Support and Resistance
3. How long Price will move in that pattern
4. What to look for ahead of sudden Price moves
5. When a bottom or top is underway
The chart example below shows price underlined on the left, at an extreme Angle of Descent™ into the lowest low before a bottom commences.
Even as this final sell down occurs, it is obvious that the steepness of the Angle of Descent is unsustainable. In addition TechniTrader Quiet Accumulation indicator TTQA in the bottom chart window with red bars, is exposing smaller fund capitulation as the stock tumbles.
Martha Stokes CMT
TechniTrader technical analysis using a MetaStock chart, courtesy of Innovative Market Analysis, LLC dba MetaStock
Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses
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