im trying to rewire myself to be able to read charts better so i can understand what other traders are doing and what is moving the price etc
is there a main idea behind trader logic that will allow me to start developing my own by looking at the chart and forming my own conclusions about what is happening?
few examples of what im asking just because few people here never read the question before answering and derail my posts.
after a big spike there will be alot of traders trapped and will be trying to exit at every pull up on the way down until most of them exit at a loss which then removes the selling pressure and new buyers come in which pushes the price back up with little resistance and the new cycle begins of trapping bulls.
when a wedge forms there are buyers waiting to enter the trade at different points.
and depending on the price of stock there will be traders of different level participating in that trade.
penny stock will most likely have chatroom pumpers that will create a false breakout and selloff which will be slower than higher priced stocks
5-15 dollar range will possibly create a false breakout also but for different reason and depending on time of the day
if morning session there will be alot of scalpers like warrior trading and tim sykes club where the drop always seems to be very fast because they all react to that false breakout the same way by hitting that sell button the second it goes south.
and then reenter the trade when selloff stops.
but they also buy at earlier stage with more risk because they are obviously more experienced.
so those two examples i understand because someone explained it to me
but im trying to understadn the underlying concept of this where i would be able to figure out on my own what is moving the chart
who is stuck where and who is about to make a move at what point in the chart etc
maybe a few examples of different situations would be cool to break down
is there a main idea behind trader logic that will allow me to start developing my own by looking at the chart and forming my own conclusions about what is happening?
few examples of what im asking just because few people here never read the question before answering and derail my posts.
after a big spike there will be alot of traders trapped and will be trying to exit at every pull up on the way down until most of them exit at a loss which then removes the selling pressure and new buyers come in which pushes the price back up with little resistance and the new cycle begins of trapping bulls.
when a wedge forms there are buyers waiting to enter the trade at different points.
and depending on the price of stock there will be traders of different level participating in that trade.
penny stock will most likely have chatroom pumpers that will create a false breakout and selloff which will be slower than higher priced stocks
5-15 dollar range will possibly create a false breakout also but for different reason and depending on time of the day
if morning session there will be alot of scalpers like warrior trading and tim sykes club where the drop always seems to be very fast because they all react to that false breakout the same way by hitting that sell button the second it goes south.
and then reenter the trade when selloff stops.
but they also buy at earlier stage with more risk because they are obviously more experienced.
so those two examples i understand because someone explained it to me
but im trying to understadn the underlying concept of this where i would be able to figure out on my own what is moving the chart
who is stuck where and who is about to make a move at what point in the chart etc
maybe a few examples of different situations would be cool to break down
