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RE: Why I recomend 1hour candle charts, if your a new trader..

in #trading7 years ago (edited)

I've been wondering about something since I read one of your comments, are your bases at the end of the long wicks or the candles themselves? It seems that it's around the lowest point of the wicks, but you mentioned once that the order book on the coin can be thin, so the base isn't really at the bottom of a long wick. Or is it coin dependent?

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yeah it depends on the situation.. sometimes a drop might sit there for 15mins and then bounce back up.. so on a one hour candle you cant tell that it was a thin book or an actual base that took 15-20 mins to bounce.. So you have to look deeper than 1hour candles if you want to make the call.. but if its a really long tail, then I would think you mark your base a little closer to the body.. if its a short tail than you can just mark the bottom..