What does this pattern mean?

Discussion in 'Newbie Questions' started by lucacrebbe, Mar 4, 2019.

  1. lucacrebbe

    lucacrebbe Trader

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    behh.png

    Can I ask you what does this pattern mean?
    A friend of mine told me:
    ''I am a stocks trader, not a bitcoin trader but I have seen this pattern a lot of times in years of stocks trading, and this means up pump''

    Was he trolling me? I am a newby, by looking at the chart I can' t see any indicator, he doesn't even utilize a candlestick graphic.

    You are more experienced than me, maybe. Looking at this graph what could you assume?
    Which kind of indicators are utilized here?
     
  2. Enivid

    Enivid Administrator Staff Member

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    This chart vaguely resembles a descending triangle pattern - a downtrend combined with a horizontal support. It does not use any indicators - it just a close line chart with volumes. I'd say that we could assume by looking at this chart that there is a strong support area near $3,800.
     
  3. lucacrebbe

    lucacrebbe Trader

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    As you can see, at the end of the graph the volume starts to pump, but it's ''red volume'' what that that mean?
     
  4. Enivid

    Enivid Administrator Staff Member

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    The "red volume" is just a normal volume histogram bar, which appears during a bearish candle. If the price rose for a period, the volume bar is drawn green, if the price falls, the volume is drawn red.
     

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