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RE: Its hard to keep up with all these awesome trades

in #trading7 years ago

What does it mean when there's a very long downward wick on a candle with a huge volume bar? Did someone dump a lot of coin at a low price? How does that work?

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Yeah, basically the sell orders or order overwhelmed the bid and for a few seconds it sold way way below value.. but humans fingers only type do fast, so then a flood of buy orders come in and the price is right back up.. it still forms a wick because those orders did get filled at that low price.. impossible to predict it, but when the market is thin on a coin, this can easily happen

So is the strategy here to just set up an order way below where you see the base to hopefully capitalize on the quick time window that a coin can drop that low?