#b90x - DAY 17 - Technical Analysis 101 - Starting with Candles!

b90x

#1

Technical analysis is a very full framework made up of many different parts.

Before we jump into any of the more complicated things, we have to understand the basics first: Candles.

Come join me and understand what candles are:

  • upper and lower shadows
  • the body
  • the open and close prices

Understanding candle basics are the fundamental building blocks of any great investor!

Let us know what you’ve learned or if you have any questions below!


Technical Analysis 101 - Introduction to Candles
Will bitcoin drop lower?
#2

Great video, thank you Peter :slight_smile:

I have one question: wtf is that MASSIVE very first red candle in case of every single coin?

Is it a common trading strategy to get into an ICO, and sell it on the very first possible second after it is tradeable with a huuuuge profit? For example I jump into an ICO with 1ETH, then I will get let’s say 1000 new coins for that. When it gets tradable, I make sell orders for huge profit, so I can sell my 1000 new altcoins for the value of 800ETHs, like in case of ARK?


#3

100% put sell order in for a projected price and get the hell out. That’s what ICO craze all about. Behaviorally it’s assumed it’ll happen.

Tomorrow I talk about candlestick “shadow” lengths… but to answer your question:

The red isn’t the candle, it’s the “shadow” or “wick” length. The red means that there were tons more sellers or “seller pressure” as it was released. Makes sense. Cuz people want out, as “retail investors” like us get in.


#4

Great video. For those who want a quick reference, here’s a screenshot with the notes:

As this series of videos get published, I was thinking to create an Anki deck with flashcard/quizzes for facilitating the memorization of patterns and definitions related to technical analysis.

I will share it if you find it useful.


#5

What would be even better if you screenshot and just put it in the thread as an upload instead instead of making us click on link!


#6

I still don’t understand… :sweat_smile: After zooming in, I see a candle, not even a tiny wick:

I’m waitingfor the upcoming video! :slight_smile:


#7

Done. Sorry for the inconvenience.


#8

Ah yes. I stand corrected. The big red candle means tons of price action. Meaning: lots of buying and selling.

However since it’s a big red candle, and the close is much lower than the open, it means the same thing. Lots of people selling off. People trying to get those quick gains!

@L4z0r - no worries! Just easier! :wink:


#9

Great video! Thanks Peter!

After the video, I was pulling some trading views and did some studies for my own. While studying the ETH history, I found something very interesting.

Can someone tell me what happen to ETH in June 21? (I marked it on the screenshot) It seemed like some huge crash happened for 1 hour and the price dropped from $340 to $20. Does it really make sense? Did it really happen?


#10

Yes. Yes it did. I remember the flash crash well. Even talked about it in one of my videos. Revealed the computerized trading bots that dominate lots of trading. Expect more of this to happen in the future.


#11

It was a rough day for traders of the world’s second-largest cryptocurrency on Wednesday as ethereum plunged from more than $317 to briefly trade as low as 10 cents in a flash cash on the GDAX exchange before rebounding.

In a post, GDAX Vice President Adam White said a “multimillion-dollar market sell” order was placed on GDAX’s ETH-USD [ethereum-U.S. dollar] order book, which resulted in orders being filled from $317.81 to $224.48—for a slippage of 29.4%. That, in turn, began a cascade of around 800 stop-loss orders and margin-funding liquidations, which sent the price temporarily as low as a dime, he explained.


#12

A stop-loss order requires the security to be sold when the price hits a certain threshold. Margin-funding refers to trading with borrowed money. Liquidations can occur when margin-funded positions are closed out automatically to prevent further losses. The combination of stop-loss orders and margin liquidations contributed to the sharp downward spiral, which was followed by a sharp rebound.

White said the GDAX decided to temporarily halt trading of ETH-USD in response to the price movement, then restored trading in accordance with the exchange’s “downtime process” once it was confirmed that all systems were operating correctly.

White said the exchange’s initial investigations showed “no indication of wrongdoing or account takeovers” but acknowledged that such an event “can be frustrating for our customers.”

White said the exchange’s matching engine “operated as intended throughout this event” and that “trading with advanced features like margin always carries inherent risk.”

And don’t look for the trades to be reversed.

“We are continuing to conduct a thorough investigation and will keep customers updated with any resulting actions. With that in mind, it is important to note that these trades are final in accordance with our GDAX Trading Rules (Section 3.1),” White wrote. “Honoring properly executed orders is critical to maintaining the integrity of an exchange.”


#13

Wow…I would have had heart attack seriously…Now that I know it might happen again, I would prepare things more wisely.

Thank you Peter!


#14

some incentive to put in stupidly low buy orders :slight_smile:


#15

Great videos! Been patiently waiting for more detailed technical videos. Ive been staring at trading view for several months now and have been working with moving averages, volume and macd. Note taking is something i am going to implement asap.

I was wondering what indicator you use to determine over bought/sold?


#16

Yeh man. We will get to those in time. I’m trying to break it down into the smallest pieces possible. Which… makes it good. But at the same time slow.

I’d much rather cover each small piece well, than do a long video with too much smashed in.


#17

So much love for these videos. Would have made my introduction to TA a lot less overwhelming.


#18

Thanks! Now you have videos you can send to others!


#19

I was just working on making this screenshot available. Great job!


#20

this was incredibly useful. really, really useful. thanks for doing it!