5 ms·

What's a red candle on the daily?

sabujp 5y ago
a red candle on a daily chart, usually at the top of the accleration band but can be in the middle, bottom, etc indicating that there's more selling than buying volume during the day and that the current price has gone below the opening price, by end of day that it closed lower than the open. Knowing how to read various types of candlesticks is also key as they indicate whether bulls or bears are in control.
- nuclearnice3 5y ago
  so red candle, top of acceleration - sell. green candle, bottom of acceleration - buy. anything for other combinations, say, green at top of acceleration?
  - sabujp 5y ago
    Depends on how big the green candle (also what kind of green candle it is, e.g. shooting star, hammer, etc?) is and how far above the acceleration band it has gone. For example if there's a red candle on the previous day and you're at or slightly above the top of the acceleration band, but the next day there's a green candle that exceeds the previous (red candle) day's high, then there's a good probability that the price will continue to go up the next day. For example this just happened with Micron stock (MU) on 11/11 and I bought in that day for a nice gain on 11/12. You also want to look at how far above the long term moving averages you are. I use fibonacci moving averages, e.g. 2, 3, 5, 8, 13, etc all the way up to 2584. One of the key MAs is the 233 day, if you inspect lots of charts you'll see bullish stocks pull back from their all time highs to the 21, 55, and 89, and 233 day MAs, and bounce off those to either continue higher or at least to go up for a while until you see a slow down in the acceleration of the price or a red candle in the middle or top of the accleration band (in which case you should sell). I use other indicators too on tradingview.com, Ichimoku cloud, wavetrend by lazy bear, chris moody's stochastic mtf, autofib.
sp332 5y ago
Does this answer your question? https://en.wikipedia.org/wiki/Candlestick_chart https://en.wikipedia.org/wiki/Candlestick_chart

a red candle on a daily chart, usually at the top of the accleration band but can be in the middle, bottom, etc indicating that there's more selling than buying volume during the day and that the current price has gone below the opening price, by end of day that it closed lower than the open. Knowing how to read various types of candlesticks is also key as they indicate whether bulls or bears are in control.

nuclearnice3 5y ago
so red candle, top of acceleration - sell. green candle, bottom of acceleration - buy. anything for other combinations, say, green at top of acceleration?
- sabujp 5y ago
  Depends on how big the green candle (also what kind of green candle it is, e.g. shooting star, hammer, etc?) is and how far above the acceleration band it has gone. For example if there's a red candle on the previous day and you're at or slightly above the top of the acceleration band, but the next day there's a green candle that exceeds the previous (red candle) day's high, then there's a good probability that the price will continue to go up the next day. For example this just happened with Micron stock (MU) on 11/11 and I bought in that day for a nice gain on 11/12. You also want to look at how far above the long term moving averages you are. I use fibonacci moving averages, e.g. 2, 3, 5, 8, 13, etc all the way up to 2584. One of the key MAs is the 233 day, if you inspect lots of charts you'll see bullish stocks pull back from their all time highs to the 21, 55, and 89, and 233 day MAs, and bounce off those to either continue higher or at least to go up for a while until you see a slow down in the acceleration of the price or a red candle in the middle or top of the accleration band (in which case you should sell). I use other indicators too on tradingview.com, Ichimoku cloud, wavetrend by lazy bear, chris moody's stochastic mtf, autofib.

sp332 5y ago

Does this answer your question? https://en.wikipedia.org/wiki/Candlestick_chart https://en.wikipedia.org/wiki/Candlestick_chart