Notice that when the candles form a large stick on top (basically the candle is pointing downwards), then we have a few candles of resistance or pullback. In this example it isn't so obvious, because this coin right now is in a very strong run, but you get the idea.
After the first candle closes and give you the signal, you can sell at the following candle and then expect a retrace.
Let's look at a clearer example:
Then you use the support level to buy back. This is called a swing trade, this can make you lots of money. But if you get it wrong and go on panic, you can lose a lot as well.
Additional tip: The indicator "TD Sequential", which puts the numbers on the candles is another HUGE indication of a coming retrace. On the same chart above, you can see that the #9 produced the biggest fall.
If you want to take this to MASTER level, learn how to read candles.
Still don't fully understand when to pull the trigger on selling based on the candlesticks. In your examples, there were a few times when it looked as if a similar sell pattern was emerging, yet prices continued to go up.
Do you have any additional examples or resources (or clarity)?
Thanks!
PhamHoangLe
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Hi Alan, I'm a fan of you now. I've been reading all of your posts the last few days :) I have a question regarding this, so which candle do you use ? Eg, 1 day or 2 hours ?
Mr_AT
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@PhamHoangLe, just take a look at the picture, at the very bottom of every picture, there are line with numbers, those numbers mean hours, so it is very easy to calculate that every candle is an hour :)
You can also look at the title, next to the coin name, it says "60", which stands for 60 minutes.
erdolo
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Hi @alanmasters, can you elaborate on how "TD Sequential" is a HUGE indicator for a coming retrace ?
Thx for the amazing vide again.
cheers
AlanSantana
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@erdolo, Sorry, I don't have any info about it, I just look at the numbers and go with it. I've also been told that there is mixed info about this indicator online.
All I know is that it gives you a trend, either green or red and when it changes, the trend is changing.
isk103lI03llt
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Give this man applaus please. Never entered xrp because of many reasons, but stumbled across his mindset :)
Do you have any additional examples or resources (or clarity)?
Thanks!