RE: Chart20 Jun 2023 14:06
Chart Explanation for SPKr13 . well sort of, Harmonics is based on price action.
It's uptrending, nothing goes up in a straight line as it's market structure.
It spiked because traders look for bullish RNS everyday, pile in then sell and onto the next. They are not bothered about fundamentals of a company or they added, took their capital back out and now have a free ride.
It was overbought on Stochastic, so if a red candle appears in overbought above 80 it's a sign it's going to come down, (but that's ok, not for day traders) now it's hit support and real investors are taking positions.
Support & resistance, price came down hit support and bounced. Harmonics are a type of charts that you can relax with, up down Harmonic traders are not fussed about it coming down (obviously if really bad news then it may invalidate the pattern) but it was good news, so we all know it's going to rise.
Harmonics can have 4 targets, the third target is at 51p but remember don't come out of a uptrending stock!!!
Those drops are just the way it is. No chart goes up in a straight line. None haha. So harmonic patterns are based of Fibonacci ratio's.
Larger harmonics are stronger, so you can trade the smaller ones in-between. Smaller harmonics are faster.
If you don't know them just use your trend line, support & resistance ect.
No one is manipulating the stock.
Watch out for the spread of your going to add another Tranch or first time investing in this. The spread at the minute is 7.69% so that is added on to your buying. So, buy when the spread is lower.
That's it. Haha. People trade different, on lower time frames, support & resistance lines, the range, up & down. etc. Hope I've explained it so you can understand trading. Investing is totally different.
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