More than any colours, RED halts what we are doing and demands our immediate attention.
Like this chart, the moment we see this 40% plunge and a very sharp long red candle, our mind conjures images of losses, further plunge, bear market is coming, etc.
Most people when they encounter lots of blood presence are too shocked to do anything (unless you are a trained medical professional). That is why the RED traffic lights are so powerful. It stops cars and prevent accidents to a large extent.
When traders see red candles, it instil a sense of fear, stress and danger. Our body begins to operate like the prehistoric hunter - fight or flight response.
Then, we often said that to win in the stock market, we must buy low and sell high. How can we buy low? Like this , this is buying low or accumulating for those who are already in this share and believe in the growth story.
Train your eyes and heart to withstand the colour of red and perhaps start practising on a demo account on certain pairs or stocks where you buy on a red candle and see what are the consequences. Of course, the bigger time frame must support its bullish move like in this stock.
Your very own real experience would feedback to you that it has been an obstacle in your mind all along, tricking you not to buy when you see a red candle. And that also takes away a lot of good opportunities.
If you want to play safe, then wait for a bullish signal or buy at 53 level.
Would be great to have your update on this. Can't find a lot of articles on this company, but looks like a nice buy at these levels. What do you think?
wadeva369
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this consolidation is taking a really really long time...
flalji
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Big drop at around 2.30pm today. Took the opportunity to add more at 57.5
Fingers crossed for the results announcement tomorrow
flalji
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@flalji, Added more at 50.7
Watching it rally...looks good today