As you can see on the SBEV chart, there is a build-up of tension towards the end and an inverted hammer candle. The long upper wick of the candlestick pattern indicates that the buyers drove prices up at some point during the period in which the candle was formed, but encountered selling pressure which drove prices back down to close near to where they opened. When encountering an inverted hammer, traders often check for a higher open and close on the next period to validate it as a bullish signal.
After this the price blew up from around 1.05 to 4.35 which is mor than a 4x
And now some math, if you had invested 100€ at 1.05, and cashed out at the top (4.35), you would now have 414€ which is 314€ made in only 3 days.
Here is the calculation: 100/1.05 = 95.238 95.238x 4.35 = 414,2853
With all due respect but TA on this chart is lack of details , one can find multiple examples of the "build up tension " on the chart o SBEV right before the price dropped below the price range zone. It is definitely easy to do TA after move already happened. What else have you use besides "build up tension" to "predict" the move? Thanks.
xtekky
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@RotanimreT, Hi thank you for your comment, I in fact didn't predict that move, I am not experienced enough to do such things, this was just my current way (still improving) to explain the movement of the price, as there was a strong resistance line and an inverted hammer candle, SBEV seemed to be ready to break trough. There is certainly many different indicators and ways to predict such moves. You made me rethink of my thoughts ( if I can say it like that) which I thank you for. If you found any other indicators or actions that made the price blow up would you mind tell me? Have a nice day
RotanimreT
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@xtekky, Hi! You can try Multiple time frame momentum strategy , to select your entries and to increase probability of success of your game plan. You can find more info in "High probability trading strategies" by R.Miner. Here is the quick summary of the book :The multiple time frame (MTF) momentum strategy is the most powerful approach discovered by the author in over 20 years to filter any market and any time frame for trade direction and execution. The MTF momentum strategy is a key factor to the trade plan that identifies high probability trade setups with minimal capital exposure. This chapter describes how to use just about any momentum indicator as a trend indicator for trade direction in a unique but very logical way that one has probably not been taught before. It is not concerned with identifying the exact price-swing high or low of a trend. Rather, it is concerned with identifying trades in the direction of the trend, including near the early stages of the trend and avoiding the later stages.