RE: BTC almost $4,000!!! Will it hit $6,000 or more? Where do I take profits on my Free coins?
A sudden spike like that does not create a base usually, it can be the result of sudden news or rumor that runs the price up, but the price where the news came out does not hold much significance for the big investors. Its just where the news broke...
When the price is falling and then stops and reverses with a huge spike, thats tells us that buyers are sitting at that low and would not allow the coin to go any lower. Thats a price that is significant.
But if a coin just suddenly takes off, without hitting a support level, then we are left wondering what changed? why did it just take off all of a sudden? You see, we don't know the story, and we don't know for sure if the take off price is significant. Trading shouldnt be a guessing game, you need the odds always skewed huge in your favor. I only take trades where I understand my odds.
Thanks for the reply Luc, makes perfect sense. So the story were watching for now is where we will get the spike from what seems to be an inevitable panic dive at some point, then we have a clear base to start working off of again with this chart.
"Trading shouldnt be a guessing game, you need the odds always skewed huge in your favor. I only take trades where I understand my odds." --- words to live by, this simple statement is what most traders get wrong.