Hey Luc, may I ask you a quick question about support, a lot of times when I look at charts it looks like whenever the candle has a long tail going down, the price will quickly rebound upwards and support gets much closer to the end of the wick, is this correct?
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It really depends on the chart.. some of these charts have very thin books.. So when a big order hits there just arent enough buy orders on the bid to handle it for a secons or two and the price drops to fill that one order.. this is not support, because if the guys supporting it had time to react they would have never allowed it to drop that low.. thats why within seconds its back at a more reasonable area.. so support really is where the bigger players wont allow it to go any lower and then you usually get a nice bounce from there.. So most of the long wicks (like the one on BLTZ) dont count..
That makes sense, funnily enough I wasn't thinking about blitz...Man the charts were insane these 2 days, all I managed to do was get a breakeven trade on DGB(chart missed a bounce and flag freaked me out a bit, then the whole thing bounc)... The new updates are good, people get to know whats up with some insights along the way, I like this stuff, good material for newbies like me
Correct me if I'm wrong Luc, but is the only way to really capitalize on those crazy quick dives like the one on this chart by just setting buy orders at these crazy low points on the chart and kinda hoping that dive takes place. I would imagine even for someone like you who's monitoring the charts all the time it may be hard to see that quick drop and place a buy.
Maybe Luc bypassed your question, but for the most part you will need to anticipate these sharp drops by putting in a buy order on some of the charts. Even if an alert goes off, sometimes I do not have time to react to make that buy. These seem to be mostly with the lower volume coins.