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Abiel

Buying pressure

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Today in the chatroom Andrew shared this piece of advice regarding price action: he explained how this large wicks on candlestick were a sign of buying pressure:

 

2018-05-02_0858.png

 

As you can see, after these candlesticks AAPL reverted...

 

Good to keep this in mind while we´re trading...

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Great post, Abiel! Also note that it failed to make a new low two times which was a sign that bears were getting exhausted.

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You´re right Robert, thx! We need to ingrain these distinctions as a second nature in order to be successful as day traders...

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Saw the inverse of this today with the example below -- long wicks above the candle, indicating selling pressure.  Sure enough, price dropped shortly after.

 

MU_05.07.18

 

Glad I got out!

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yes, thanks for the reminders Abiel & Robert! It always makes sense when I read about it but when trading I seem to miss these small details. I guess you have to circle around these concepts many many times before they become engrained in your trading DNA!

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