How many other people are out there stare at candlestick trading charts all day?
I've found it's a lovely way of wasting some time away. Is it ticking closer to my sell line, or away from my sell line? How many transactions are taking place? How much volume is being sold?
At the end of it, I still don't really understand what it means. It's just a nice way of passing some time.
Here is an example. This is the candlestick chart of ATOM/USDT that I've been staring at for the past 10 minutes.
What is it telling me (apart from the fact that my "sell" price is still to be achieved)?
Is the market going up, or going down?
I had heard that the way to draw a trend line is to join the bottom troughs together.
BUT - and here is the quandry - which ones?
One line tells me that it is going down (01).
The other line tells me that it is going up (02).
Or is it just telling me that the market is volatile at the moment?
Do I dare put some science behind it, or do I stick to gut instinct?
It would be great to hear from some of you more experienced traders as to how you interpret the graphs. Please leave some comments and let's see if we can get a discussion going!
For the time being, I'll continue to (happily) spend my time looking at the ticker as the numbers come in ... a bit like the football (soccer) scores on a Saturday afternoon.
Note : All of my articles are my own and relate to my own personal experience. My article may also have been published on other websites. Investing is always at your own risk.