as I completely felt like I was in outer space and lost during most of the blog...I liked the idea of "reversal trading" haha...I think it is a genial strategy that I will keep in mind in the future...you made a bet for a spike and considering high spikes can last for a few seconds to few minutes you "catched" it on the fall down with a lower bet,,,u locked it..up! I think it is genial...am new to all this and I am not sure if I read that correctly
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ps yesterday steem spiked to 2.000000 with a more than 50% increase...i made a post just 4 the record!! lol who knew?? spikes are signs of good coin health u think? i don't know.... :)
Spikes just tell you where the buyers and sellers are lurking. Price spikes up and down = lots of sellers above the spike. Price spikes down and up - lots of buyers below the spike.
They do not really tell you about the health of the market. Market health best measured by 2 or 3 days (occasionally 4) of prices moving consistently in one direction (i.e., each bar makes a new high and new low going up = buyers are prepared to pay more = healthy )
Reversal trading is all about watching price move in one direction and waiting. You are waiting to see a signal that price is going to reverse direction. And (generally) the only way you know it is reversing is when it has already reversed.
When price is going down, trying to time a reversal before it has shown it has reversed is called "catching a falling knife" = OUCH