@ariel manosca The red circles are points of consolidation. ...
@ariel manosca
The red circles are points of consolidation. Typically at each of these high and low points we look for a candle stick indication to signal a reversal. When a stock has reached a high point it can either break resistance or dip and try again. As traders it's our jobs to locate these entries and trends(this being an upward trend #BULLISH) seek to find an entry upon these dips. You don't ever want to go into a trade without a confirmation of direction. Consolidation is important because it shows you the psychology of the market when something consolidates consider it a moment of rest it isn't a signal to sell or buy. the direction the market will take is typically defined after this moment of consolidation. The first sign of consolidation at the high shows the following bar being a bullish red candlestick forming under the green bar followed by a green one and then a stronger red candle stick followed by the next more bearish(Red) candle forming under that one which is considerably bigger in size. This is your validation or market direction and is a good time to place a short on the stock until you see another reversal happening at the bottom.
The red circles are points of consolidation. Typically at each of these high and low points we look for a candle stick indication to signal a reversal. When a stock has reached a high point it can either break resistance or dip and try again. As traders it's our jobs to locate these entries and trends(this being an upward trend #BULLISH) seek to find an entry upon these dips. You don't ever want to go into a trade without a confirmation of direction. Consolidation is important because it shows you the psychology of the market when something consolidates consider it a moment of rest it isn't a signal to sell or buy. the direction the market will take is typically defined after this moment of consolidation. The first sign of consolidation at the high shows the following bar being a bullish red candlestick forming under the green bar followed by a green one and then a stronger red candle stick followed by the next more bearish(Red) candle forming under that one which is considerably bigger in size. This is your validation or market direction and is a good time to place a short on the stock until you see another reversal happening at the bottom.
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skruffiez : is 8t better to buy a low stock with lots of shares or a high stock with 1-2 shares?
Mark Padilla OP skruffiez : I'd personally pay more for 2 stocks with higher quality than for 100 stocks from a penny stock. You increase your loss potential when hold more while profitability remains relatively the same.
70100479 skruffiez : use a risk assessment tool. I shared mine yesterday. no new trader(no matter the type) should not make more than a 10$ risk.