INTRODUCTION TO CHART FOR NEWBIES

[-CryptoViking-]

This is one of the best indicator I am using in my chart, before entering a trader or before closing our trade, the Relative Strength Index (RSI) is extremely useful.
For what I am also experience using such Relative Strength Index (RSI), the higher timeframe we are using here, the more effective it is.

Same here, but this is only simplified version as a form of introduction to RSI related to trend changes and there is much more to RSI then it is written here, but it's a good start for new trader to learn about it. Feel free to add more info on this topic if you feel like it, I wouldn't mind more people using this topic.

[-CryptoViking-]

I introduced some bearish reversal candles in previous post in the series and now we will continue by explaining some of them as promised.


We will start with the Shooting star first:

• Little or no lower shadow at all
• Price closes down at the bottom of the candle, around 1/4 of the candle
• Upper shadow is usually biggest part of the candles body, about 2 to 3 times the lenght of the body

How to interpret this pattern:

• As the market opened the buyers pushed the price high, most likely to resistance confluence.
• The bears react and start selling pushing the price back down creating a selling pressure.
• Bear pressure becomes to strong and they overwhelm the bulls buying power.

So as a conclusion: Shooting star indicates a possible bearish trend reversal and that sellers are starting to come to market and started to sell aggressively.

[Smartvirus]

The candle stick! Whom ever invented it is quite a genus. It's the best way to speculate what price action is doing in the market and using it in combination with RSI, some other indicators that might suit you and on a better time frame, your price equity is sure to get better.
Candle sticks presents an opportunity only if you care to read meaning in every candle that builds up on the chart.

[-CryptoViking-]

Continuing with the new pattern, bullish reversal pattern The Hammer :

• Little or no upper shadow at all
• Price closes up at the top of the candle, around 3/4 of the candle
• The lower shadow is usually biggest part of the candles body, about 2 to 3 times the lenght of the body

How to interpret this pattern:

• As the market opened the sellers took control and drove the price down, most likely to the support confluence.
• The bulls react and start buying, pushing the price back up creating a buying pressure.
• Bull pressure becomes to strong and they overwhelm the bears as the buying momentum was so strong that the closing price was higher then the opening price.

So as a conclusion: The hammer indicates a possible bullish trend reversal and that bulls/buyers are starting to come to market and started to buy strongly again.

[big_daddy]

Just in time with the hammer explained
It happend yesterday 

[-CryptoViking-]

Just in time with the hammer explained
It happend yesterday 

What a weird coincidence  Indeed 

[big_daddy]

Just in time with the hammer explained
It happend yesterday 

What a weird coincidence  Indeed 

To be honest, I was waiting for the opposite scenario, a big dip, but -> bitcoin
Unpredictable hehe