Candles? The Candles!? What do they mean?

[UltimateReaper]

Alright. I normally don't like to start threads or spam, but I'm rather confused right now.

Here: http://bitcoin.clarkmoody.com/

Has anyone been looking at the candle sticks lately? I've never seen this before.

Maybe my memory is faulty but they are freaking huge. And the price keeps ricocheting back and forth. I've never seen movement like this before to these extremes, scrolling back a little and it looks like the current status is a bit unnatural.

What does this mean? Anyone seen this before? What is this indicative of?

Sorry for the n00b questions.

[evolve]

What does this mean? Anyone seen this before? What is this indicative of?

Large swings in price at the time period and scale (ie: weekly/hourly) you are looking at.   

[Phil21]

it's been especially volatile in the past couple days, even by bitcoin standards.

The other factor is the scrolled-in graph is showing a very small ($15) spread, vs. some of the spreads when you zoom out.  So the $1.50 price movements may seem more extreme than they are if you just look at the size of the candle and not the scale.

[UltimateReaper]

it's been especially volatile in the past couple days, even by bitcoin standards.

The other factor is the scrolled-in graph is showing a very small ($15) spread, vs. some of the spreads when you zoom out.  So the $1.50 price movements may seem more extreme than they are if you just look at the size of the candle and not the scale.

I see. I mean, I'm pulling back the chart at the same zoom back and I'm not seeing anything remotely close to what I'm looking at now. Maybe I just don't know what I'm doing, but I thought it was strange.

[UltimateReaper]

What does this mean? Anyone seen this before? What is this indicative of?

Large swings in price at the time period and scale (ie: weekly/hourly) you are looking at.   

What do you think this indicates? I've never seen this before. Have you?

Thanks for replying.

I listened to you about the downtrend bear call. I'm not sure if you actually believe that or are just fucking with people, but you know, I kind of agreed. Time will tell whether this fucks me over. 

[Phil21]

Well, scroll all the way out.

Then select "H4" instead of "M3" (which I believe is the default - at least it came up that way for me)

That will show you 4 hour candles vs. 3 minute, and goes back to April 10th.  In that context, the recent candles look fairly small.

Also keep in mind volume (the vertical bars on the bottom) is equally as important to consider.  A day that has a 10% swing that trades at very small volume is less significant than the large volume movements (at least to me).

[UltimateReaper]

Well, scroll all the way out.

Then select "H4" instead of "M3" (which I believe is the default - at least it came up that way for me)

That will show you 4 hour candles vs. 3 minute, and goes back to April 10th.  In that context, the recent candles look fairly small.

Also keep in mind volume (the vertical bars on the bottom) is equally as important to consider.  A day that has a 10% swing that trades at very small volume is less significant than the large volume movements (at least to me).

Ah... I guess I've still got a lot to learn about this stuff. All of this is quite humbling. I'm beginning to think that I'm stupid, at the same time, I beginning to pick up on all this stuff.

[Anon136]

Well, scroll all the way out.

Then select "H4" instead of "M3" (which I believe is the default - at least it came up that way for me)

That will show you 4 hour candles vs. 3 minute, and goes back to April 10th.  In that context, the recent candles look fairly small.

Also keep in mind volume (the vertical bars on the bottom) is equally as important to consider.  A day that has a 10% swing that trades at very small volume is less significant than the large volume movements (at least to me).

Ah... I guess I've still got a lot to learn about this stuff. All of this is quite humbling. I'm beginning to think that I'm stupid, at the same time, I beginning to pick up on all this stuff.

the sooner you realize that you are stupid the better off you will be in the long run. It took me a while to come to terms with the fact that im stupid, but now that i know it helps me to make wiser decisions. 

[UltimateReaper]

Well, scroll all the way out.

Then select "H4" instead of "M3" (which I believe is the default - at least it came up that way for me)

That will show you 4 hour candles vs. 3 minute, and goes back to April 10th.  In that context, the recent candles look fairly small.

Also keep in mind volume (the vertical bars on the bottom) is equally as important to consider.  A day that has a 10% swing that trades at very small volume is less significant than the large volume movements (at least to me).

Ah... I guess I've still got a lot to learn about this stuff. All of this is quite humbling. I'm beginning to think that I'm stupid, at the same time, I beginning to pick up on all this stuff.

the sooner you realize that you are stupid the better off you will be in the long run. It took me a while to come to terms with the fact that im stupid, but now that i know it helps me to make wiser decisions.  

  Hopefully in its part is the Dunning–Kruger effect... I really underrate myself, but you know, maybe I'm just average. Or maybe I'm just an unpolished gem. Endless self depreciation is mental and emotion decapitation.

and I catch your drift.

[evolve]

What do you think this indicates? I've never seen this before. Have you?

Yes. A large candle means there is high buying (green) or selling (red) pressure at that given moment. Its completely normal, particularly in something a volatile as bitcoin.

I listened to you about the downtrend bear call. I'm not sure if you actually believe that or are just fucking with people, but you know, I kind of agreed. Time will tell whether this fucks me over.  

I definitely believe we are in a bear market and the price is heading down.  That said, listening to strangers on the internet for financial advice is always a bad idea.

I hope you aren't trying to short, though...trading on leverage is super risky with something as volatile as BTC; even in a down market a quick rally can get you a margin call.

[evolve]

More info on candlestick formations:

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:introduction_to_cand

[Anon136]

Well, scroll all the way out.

Then select "H4" instead of "M3" (which I believe is the default - at least it came up that way for me)

That will show you 4 hour candles vs. 3 minute, and goes back to April 10th.  In that context, the recent candles look fairly small.

Also keep in mind volume (the vertical bars on the bottom) is equally as important to consider.  A day that has a 10% swing that trades at very small volume is less significant than the large volume movements (at least to me).

Ah... I guess I've still got a lot to learn about this stuff. All of this is quite humbling. I'm beginning to think that I'm stupid, at the same time, I beginning to pick up on all this stuff.

the sooner you realize that you are stupid the better off you will be in the long run. It took me a while to come to terms with the fact that im stupid, but now that i know it helps me to make wiser decisions.  

  Hopefully in its part is the Dunning–Kruger effect... I really underrate myself, but you know, maybe I'm just average. Or maybe I'm just an unpolished gem. Endless self depreciation is mental and emotion decapitation.

and I catch your drift.

right, back when i thought i was smart i would try to do things like buy low and sell high, it would try to be a pro trader. Now that im in touch with my inner stupid i buy fundamentals and hold for the long haul.

[UltimateReaper]

More info on candlestick formations:

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:introduction_to_cand

Thanks for the link. I have some reading up to do.

And I catch your drift, it's just that I'm not arrogant enough to believe that I'm completely capable of acting on my own accord right now. I'm trying to learn as much as possible while making as few errors as possible. Truth be told I'd be doing outstanding right now had my limit order been 50 cents higher, I've got some decent short sight and game sense, but keep barely missing the windows of opportunity. I had several chances to recoup and recover too but also narrowly missed those. Life is a bitch that way. It hurts, but I don't really care about the money. It's just the thought of having to face the psychological defeat that scares me the most.

I'm still sitting on the fiat. I'm waiting. Either I wait and hope for a better price or bleed out and buy back in. I've opted to just wait.

Anyways, thanks for being helpful, informative and friendly.

And no I'm not shorting. I barely even know what that means   I'm not into that borrowing, leveraging and whatnot crap.

[amencon]

More info on candlestick formations:

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:introduction_to_cand

Thanks for the link. I have some reading up to do.

And I catch your drift, it's just that I'm not arrogant enough to believe that I'm completely capable of acting on my own accord right now. I'm trying to learn as much as possible while making as few errors as possible. Truth be told I'd be doing outstanding right now had my limit order been 50 cents higher, I've got some decent short sight and game sense, but keep barely missing the windows of opportunity. I had several chances to recoup and recover too but also narrowly missed those. Life is a bitch that way. It hurts, but I don't really care about the money. It's just the thought of having to face the psychological defeat that scares me the most.

I'm still sitting on the fiat. I'm waiting. Either I wait and hope for a better price or bleed out and buy back in. I've opted to just wait.

Anyways, thanks for being helpful, informative and friendly.

And no I'm not shorting. I barely even know what that means   I'm not into that borrowing, leveraging and whatnot crap.

Yeah I'm in a similar situation as you.  Before the last dip I sold a bit under 100.  Filled buy orders all the way down to 79 but I thought it might dip a bit lower or at least hang down there for longer.  Ended up buying up about half of what I sold cheaper but then it bounced back fast and left me hanging for now.  Technically I think I could buy at current price and come out around even or maybe a bit ahead but was hoping to gain in BTC and not just tread water.  Think I'll wait and see if it comes down a bit more before buying the rest back.  Next time I'll try to be less greedy and lock in 5-10% gains in BTC when I can.

With the volatility the price does seem to usually come back and give you more chances to buy or sell where you wanted to.  I do find that I'm more prone to panic while holding USD so in this situation I have to fight the urge to panic buy back BTC.  For the most part I'm emotionally bullish on bitcoin mainly just because I like it and want to see it succeed.  Definitely a big weakness for trading, then again I trade with only a small portion of my BTC and see it more as gambling for fun than thinking I'm smart enough to beat other likely more experienced market players.

The last big move I made was selling a bit under 100 when it dropped down to 50.  That time I got luckier and now am able to play trade on the winnings of that move and keep my original BTC investment plus a couple more coins on a paper wallet.  That way if I bungle things up real good I'm still up in BTC overall.

Good luck to both of us for a quick flash dip to allow us to buy back then up up up hah.