Is the $DATS chart broken on the short term? Trade Analysis Video and Transcription
Sometimes it looks like a chart is "broken" on the short term. This may be the case with $DATS -- DatChat Inc. On September 29, 2021, Turbo Trading's Head Trader, Robert Knight, shot this 2-minute Trade Analysis video. A transcript is below the video.
A quick video here on $DATS. The question was asked by AJ, if I thought this chart was broken on the short term. So look at the volume that's coming into this. You have this big, long spike up and it's closing near the bottom. This is a typical pattern that we trade, to sell stock.
This is the top of the market closing near the bottom, especially... We need one more day. Usually, we'd be looking at this on a five-minute chart or a two-minute chart, I mean. We don't really see it on the two-minute because it's too short, but here you see, you've got this big, long wick up.
Next candle is red. Sure enough, it sells off. So this is the same principle, regardless of the timeframe, the candles are the candles. And they all read exactly the same, no matter what the timeframe is. So you get this big, long wick up, spikes to $18, closes at $13 way down, and off a $1.40 on the day.
And look at the volume. This is blow-off volume. So you would look for this, especially tomorrow if the next candle is red, that would be the end of the trade. If tomorrow is green, then maybe what we get is a -- which is also a typical pattern where you get a big spike up and close near the bottom. Not so much when you're, you know, usually when you get a gap up, but this is at, uh, you know, this.
You know, 10 of 11 days or something like that. 2, 4, 6, 8, 10, 12, not counting today is up 11 of 12 days. So that's a huge move, but we're getting blow off volume here. If the neck, if tomorrow if the candle's red, then that trade is dead.
