Hey all, I'm trying to level up my chart reading from "it kinda looks like it's going up". In this META example there was a big drop starting Jan 12 (Monday) and then accelerating down to the bottom on Jan 14.
Nothing about the candles, vwap or ema charted here gives me any clue that is going to happen on Jan 9th. My question is, am I missing obvious clues, or am I looking at the totally wrong kind of chart? Were there signs that betting on META going up the next week was a bad idea, or is it only visible in hindsight?
https://i.redd.it/tro4gl11p3eg1.jpeg
Posted by vrtra_theory
2 Comments
What you’re seeing is capitulation and then sellers getting exhausted than buyers stepped in when that green bar printed. That’s not the entry though. As it can still be a falling knife. I have to wait for that prior bar high to be taken out, and then move over that line a you’d see a clear right side of the V forming. That’s your entry.
1. No amount of charts can predict what will happen
2. You need to use context to make reads
3. (for the context) Mag 7 stocks have been rotated out of the past 1 month
4. reading Volume is your friend, the last 5 down bars being higher volume bar than any green bar in the past month is a very bad sign