Hello all. I have diligently been going through all the videos and comments before asking any questions after watching and reading the comments over 3 times, I couldn't find the answers to my questions. I'm hoping @quickfingersluc or any experienced member of the community can help. Here goes.
@quickfingersluc mentioned that when we get one of those alerts from the scanner, we should look at a 1 month view of the chart to determine what normal trading on that specific chart. He also says we should look at volume to determine what normal volume is for that chart. My question is, how does these informations help us? What does it tell us pertaining to this type of trade? if the chart has decent volume (shown by the height of the sell and buy volume bars), what information does it give us that could be a factor on whether or not the trade is safe?
You also said that 2 keys to determining if this massive drop in price is through looking at the exact same coin pair in another exchange to asses if its reacting the same way. I can understand that. You also said volume will tell us. Please elaborate further if you can. How exactly will volume tell is? Is it that the volume bar will not be big in comparison to the depth of the bear candle? Because if a coin experiences a massive drop and that coin pair doesn't exist on another exchange then we would have to rely on volume. How do we read volume and use volume to govern our decision making?
- You also mentioned that sometimes the coin will stay down at the low for a couple of minutes giving us a chance to participate? Do you set buy limit orders below the price? Do you set buy stop orders above the price? Or do you buy at market? (You have also mentioned that you never use market orders ever). When the chart shows history of flash crashes then yes, one can participate via buy limit orders somewhere down there. However when the price is dropping live and direct, how do you participate? Is it the same thing? Put buy limit orders while the crash is happening and hope it drops low enough to get filled?
Much thanks to any and all who are able to answer these questions for me and much thanks to @quickfingersluc for teaching me a skill that can give me financial freedom.....a goal that I and most of us have been trying to achieve all my life. Hope to hear from anyone soon.