Can yall help me break down this chart movement?

[mute9003]

Trying to understand this chart. Since its extremely clean moves.
Can someone correct my thinking here if im wrong?

So it starts by a massive amount of sell orders
that tiny green bump im assuming is the original bull trap?(is it always a bull trap?)
then fast drop that triggers stop losses.
do institutions see where stop losses are and how many there are?
then the second bump why is it there specifically?
is it because the initial selling pressure extinguished and naturally chart bumped up a bit and some people (caught a falling knife) and basically created their own bull trap?
and the second (bottom) bounce is when final selling pressure died out from stop loss or people basically too deep in it to sell and just wait it out?

So the two bounces seem almost identical but one is half way and other one is the actual bottom.
are there signs that confirm that the bounce is the actual bottom?

Im just trying to learn to follow the chart here and break down the action that i see on the chart
Please feel free to chime in and correct where i read it wrong or misunderstood what is happening..

 

[maxinger]

short it at the first down arrow.

2nd down arrow. too late to short it.
in fact, you should take some profit / adjust your STOP.

don't bother about the traps and knives and clouds
and whales and flags and bottoms & institutions and those things.

 

[JackMorgan]

i did a whole thread on this in realtime. search for it . behold the insight

dont expect much insight from the crowd here, most of them think this isn't a casino.

 

[schizo]

So it starts by a massive amount of sell orders
that tiny green bump im assuming is the original bull trap?(is it always a bull trap?)

No, bull traps don't end with just 1 bar. It's more extended, and usually with ferocity, to make unwary buyers to believe that the selloff is finally over.

then fast drop that triggers stop losses.
do institutions see where stop losses are and how many there are?

Institutions have the might to move the market and this is definitely one way to do that. What usually happens is the institution would gun the short sellers first. That would trigger a massive stop-cover rally (this is what would start a bull trap). Then on the way down, they would gun the sell stops, accelerating the selloff. Stops are usually congregated around the areas of milestone numbers or indicators like VWAP and MA200, etc.

and the second (bottom) bounce is when final selling pressure died out from stop loss or people basically too deep in it to sell and just wait it out?

Measured move: The distance from the top to the first pause is about the same as the distance from the pause to the bottom.

So the two bounces seem almost identical but one is half way and other one is the actual bottom.
are there signs that confirm that the bounce is the actual bottom?

Nobody knows for certain (at the time) if that is a reversal but everyone will know when the rally gets going. One sign of confirmation is the higher low. Until then be patient and wait.

 

[JackMorgan]

If all that stuff worked , you'd be a billionaire in a week.

Am You ?

 

[JackMorgan]

Notice I first posted about this scammy name, at $18 . On its way to 5's

Any fool trying to catch the bottom , without any context of what it was, would have been run over big time.

No one here posts about actual opportunities as they happen ,preferring to talk in generalities that can't be vetted .

 

[MacBookProHo]

If all that stuff worked , you'd be a billionaire in a week.

For 99.2% of people on this website....if all of that stuff worked, you'd be a millionaire in a decade. But no one is.
I wonder who here has actually made a million in net trading profits -- ask around, everyone is too proud to be honest,

All journals are failures, and all vendors are failures, and everyone who makes calls are failures -- or 99.7% of them are.
I could name, or sense, a dozen names at least. But I won't.

 

[TheDawn]

Trying to understand this chart. Since its extremely clean moves.
Can someone correct my thinking here if im wrong?

So it starts by a massive amount of sell orders
that tiny green bump im assuming is the original bull trap?(is it always a bull trap?)
then fast drop that triggers stop losses.
do institutions see where stop losses are and how many there are?
then the second bump why is it there specifically?
is it because the initial selling pressure extinguished and naturally chart bumped up a bit and some people (caught a falling knife) and basically created their own bull trap?
and the second (bottom) bounce is when final selling pressure died out from stop loss or people basically too deep in it to sell and just wait it out?

So the two bounces seem almost identical but one is half way and other one is the actual bottom.
are there signs that confirm that the bounce is the actual bottom?

Im just trying to learn to follow the chart here and break down the action that i see on the chart
Please feel free to chime in and correct where i read it wrong or misunderstood what is happening..

It's still too early to tell whether this is a bull trap or a reversal finally to the upside. What I would do is wait for a price drop again to see how far it drops and then decide. There will be another price drop. The bear is not ready to give up and let the price go up yet. So everything will depend on this second drop. If it drops below the current bottom at 5.15, then the downtrend is still in effect. If I want to go long, I would wait. If I want to short, I would wait for a bounce back and then short but I would be careful that the bull is starting to take over so the short might be short-lived and I would hedge to protect myself from potentially short-squeezed. If the second drop that's coming up does not drop below the current bottom, i.e. the current bottom holds, then I can start to contemplate going long. The price may make another drop to test the low or might stop itself before reaching the low before finally taking off. The bottom line is as long as the current low holds, the price will have higher probability of going up.

But all these are just from the technical side. If there is any news or anything that indicates a fundamental change in the company, all of these go out of the door and the price will move according to the news.

 

[TheDawn]

For 99.2% of people on this website....if all of that stuff worked, you'd be a millionaire in a decade. But no one is.
I wonder who here has actually made a million in net trading profits -- ask around, everyone is too proud to be honest,

Yeah but if they did make a million, you think they will really want to say it? "Yeah I here have made millions..." That will be tacky. No one would do that either.

 

[JackMorgan]

Yeah, that must be it. 16,000 posts but too humble to admit to making millions