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sriv1 · February 18th, 2010, 03:26 AM

hi shoot I have a question about the following attachment. we can clearly see that the price is approaching the supply zone but my question is, should we ignore the big red candle that gapped down at the previous level? please explainAttachment 75

Dr Pip · February 18th, 2010, 08:54 AM

You may want to post a larger chart or some details about the trade. I.E. What it is, Time frame, etc.. I can only see a tiny chart when I click on it so helping out is nearly impossible.

-Dr Pip

pmccandless · February 18th, 2010, 09:42 AM

sriv,

To put it less cocky and demeaning than others...

Could you post a larger version of your chart shot? If you're having trouble with it let me know and I can try to resize it for you and repost. If you're using photobucket I think they have a feature built in to resize. Good luck.

Pat

sriv1 · February 18th, 2010, 03:41 PM

sorry about the small image. I have uploaded it in png format which doesnot show larger image when posted anyway I have converted into jpeg...hope it helpss

sriv1 · February 18th, 2010, 03:46 PM

Quote:

Originally Posted by Dr Pip

You may want to post a larger chart or some details about the trade. I.E. What it is, Time frame, etc.. I can only see a tiny chart when I click on it so helping out is nearly impossible.

-Dr Pip

thanks for the reply Dr Pip. The image I have posted is a indian cash stock "axis bank" and the timeframe is 1hr. when I took the Image the broad market is down 1%, I hope it helps..

Shootanappleoffmyhead · February 18th, 2010, 03:55 PM

Quote:

Originally Posted by sriv1

hi shoot I have a question about the following attachment. we can clearly see that the price is approaching the supply zone but my question is, should we ignore the big red candle that gapped down at the previous level? please explainAttachment 75

Hey Sriv,

In this instance I personally would still be looking for the reversal, especially since the broad market was down 1% at the time. The simple answer for this is that no you shouldn't ignore candles like this but if there really isn't any volume to back up the move then I would continue to act as though it wasn't there but with an extra cautious eye on the position if I went short.

Thanks for the question and for posting a bigger image.

Shoot.

sriv1 · February 18th, 2010, 04:04 PM

Quote:

Originally Posted by Shootanappleoffmyhead

Hey Sriv,

In this instance I personally would still be looking for the reversal, especially since the broad market was down 1% at the time. The simple answer for this is that no you shouldn't ignore candles like this but if there really isn't any volume to back up the move then I would continue to act as though it wasn't there but with an extra cautious eye on the position if I went short.

Thanks for the question and for posting a bigger image.

Shoot.

thank you for the reply shoot. I did not understand the volume part. Do you mean that the volume should be less while approaching the level? please explain....

Shootanappleoffmyhead · February 18th, 2010, 05:32 PM

Quote:

Originally Posted by sriv1

thank you for the reply shoot. I did not understand the volume part. Do you mean that the volume should be less while approaching the level? please explain....

Hi Sriv,

What I meant was if the volume isn't there to back up the candlestick or wick you might be looking at a misprint or some other kind of non-event.

On the other hand, if there was a volume spike corresponding w/ the price spike then you should consider it a relevant move.

Make sense?

Shoot.

sriv1 · February 27th, 2010, 09:48 AM

Quote:

Originally Posted by Shootanappleoffmyhead

Hi Sriv,

What I meant was if the volume isn't there to back up the candlestick or wick you might be looking at a misprint or some other kind of non-event.

On the other hand, if there was a volume spike corresponding w/ the price spike then you should consider it a relevant move.

Make sense?

Shoot.

now i got it.sorry for the late reply I'm busy with my school.

thankyou again shoot.

Shootanappleoffmyhead · February 28th, 2010, 03:07 AM

Quote:

Originally Posted by sriv1

now i got it.sorry for the late reply I'm busy with my school.

thankyou again shoot.

No problem at all sriv. Happy studying.

Shoot