I saw an interesting trend and price action on Steem/BTC about half ago and it brought back some memories. Memories of patterns and applying them to my trading. Most traders are familiar with the phrase "Market Action Discounts Everything". As traders we go with the belief that anything that can possibly affect the price - fundamentally, politically, psychologically or otherwise is reflected in the price of that market. It follows, therefore, that a study of price action is all that is required. All that we trader's are claiming is that price action should reflect shifts in supply and demand.
The whole purpose of charting the price action of a market is to identify trends in early stages of their development for the purpose of trading in the direction of those trends. I hope you can remember this pattern and use it in the future whenever you decide to exchange some Steem or SBD. Here is a snapshot BULLISH ENGULFING CANDLE
Photo Source==> Market Traders Institute, Inc
If you analyze the graph with what you learnt on Bullish Engulfing Candle you can now take full advantage of this Strategy.
Remember to Upvote, Resteem and follow @daudimitch
Hi I'm really sorry if I'm asking this this question, but basically what does this mean?
No problem, the interaction is good. A bullish engulfing candle gives the trader an idea as to where the trade is heading up. In other words, there is a high likelihood that the current price is going higher. For example if you wish to exchange your steem or steem dollars and you notice this formation, you can just be patient and sell it at a higher price. Asset move up and down base on demand and supply and sentiment. Graphs paint a picture as to how the overall market is feeling about the asset. The graphs would tell that people are buying or selling. Usually when people are buying, prices go up. When people are selling prices go down. There are always folks with large volume or great supply that absorb all the buying pressure and cause massive drop in price. As well as folks who put in a large buy order and cause the price to skyrocket. There are many more patterns to familiarize yourself with, I would probably continue sharing those but familiarize yourself with those as they would be very useful to you in the cryptocurrency space
Thank you so much for that information. I really appreciate it! :)