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RE: Is winter still coming? Hardfork effect on Steemit trading
The sell offs that just happened was profit taking, no weak hands. Now we have consolidation phase.
The sell offs that just happened was profit taking, no weak hands. Now we have consolidation phase.
@snowflake, I'm still learning the market side of stuff - I've never had a brain for numbers - but I'm trying. Can you explain consolidation phase to me like I'm a 5th grader? I mean that sincerely :)
Consolidation is the term for a stock or security that is neither continuing nor reversing a larger price trend. Consolidated stocks typically trade within limited price ranges and offer relatively few trading opportunities until another pattern emerges. I think you'll get the drift from this graphic...
Thanks for the technical explanation. I knew those phenomenon without knowing the actual names.
A consolidation phase is a period generally after a pump and dump where the price is trying to find a new resistance level ( an equilibrium between bid/ask).
Once the pump and dump is over, there are 3 type of traders, those who took profit, those who sold at a loss and those who are still holding because they didn't want to sell at a loss ( it's because of these people that the price almost always consolidate at a higher price than were a bubble starts)
The rally started around 15k satoshi, topped at 45k sat and fell back to 29k sat. I expect the price to find resistance around 25k sat which is higher than were the rally started.
I rode the pump but forget to switch my order before the dump. I still didn't loose anything I think.