Can you read a chart?

Quote from joepepper2001:
I wouldn't trade a chart like that with not enough info, its like trading an ipo chart, I would want the 10day,20day and 30 day to see if that candle was at some support or was it after a long run, I think you have to know the long term picture to see where support and resistance might be, and use the shorter term charts for entries and exits, gives a better view on wether to stay for a longer term gain or a quick trade
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I don't think anybody would actually trade off of five bars of price data. That's not the point. Tell us what you see.
 
Oh, well thanks for showing us the gigantor gap on the open. I would say that's indicative of a strong change in sentiment overnight, and would generally support a short bias, though of course the market could try to fill the gap.

That gap is pretty big though, I don't think it'd be filled in the next 5 price bars. Could be wrong though. The market does what it damn well pleases.
 
I would like to see some more previous data but.... LONG after a few ticks down from the end of that bar for a quick bounce , a consolidaton and possibly another leg down.

Or another sharp move down to retest the lows
 
Quote from apex82:

I would like to see some more previous data but.... LONG after a few ticks down from the end of that bar for a quick bounce , a consolidaton and possibly another leg down.

Or another sharp move down to retest the lows
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And the reasoning?
 
Weak longs washed out on the move down that made new lows, all amateur traders went aggressive short with stops above the most recent highs. Bigs rode it up stopped out the shorts and sold into the breakout longs. All is left now is sell stops below the market and no buying demand except for some aggressive scalpers. At this point way more supply then demand. Hence the market makes a quick bounce and a sharp move down or the bigs just keep selling into the pullback without waiting for a small bounce wanting to buy back at lower prices. I would like to see if there was some volume spikes at the highs, as this would make it a higher probability.

The more I look at it, it is almost a blind guess at this point. Say if the market is trending up and this the first good pullback I would definately say we have another move higher before retesting the lows. However, if the higher timeframes have been selling off and the previous data is just a bull move in a bear run then I would definately expect a retest of the lows from this point.
 
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