How Retail Traders Avoid Whipsaw Trades
Many traders still rely solely upon price and price indicators, which leaves them highly vulnerable to whipsaw trades. A volume indicator reveals weak candlestick patterns, and so it is critical in today’s automated marketplace to use them. This is because giant institutions place 80% of all orders in the stock market, which are processed automatically via a computer program set to fill large orders over time without moving price.
The series of four charts within this article are the same stock over a period of time, and will provide examples of how a volume indicator reveals weak candlestick patterns.
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Martha Stokes CMT
Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses
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