Quick Test | 5 Seconds to Decide: Buy or Sell?
Technical indicators are key in investing. Every day, we see people sharing all kinds of indicators to spot buy or sell points.
Today, let’s do a quick test: Look at this candlestick chart. You have just 5 seconds—would you choose long (buy) or short (sell)?
✅ Correct answer: long (buy)
Why go long? Let’s look at it from different angles:
1.Institutional Money Logic (Smart Money Concepts)
Price first spikes up to clear orders, then pulls back to the “price gap” area.
The support zone below is a good buying point. Price is now rebounding, but keep an eye on the second support zone. If it breaks, buying pressure is weak, and the long logic fails.
2.Candlestick Analysis
Drawing lines connecting highs and lows shows possible stop points. The second-to-last candlestick touches the support line but doesn’t break it, signaling a possible reversal.
The last two falling candlesticks have long lower shadows, confirming the likelihood of a rebound.
In real trading, you can use Fibonacci levels to confirm reversal points and combine with volume and other indicators to increase confidence.
3.Bull Flag Pattern
You can see a bull flag (downward channel). The flag’s length is shorter than the flagpole, so overall, the bias is still bullish.
Buy at the bottom, then decide whether to continue long or trade within the range.
4.Practical Tips
First reversal breaks can be fake; it’s better to wait for a breakout and then a pullback to short. During high-level sideways moves, shorting opportunities are rare. Upper shadows are often caused by large orders pushing price up before it falls back immediately.
💬 Questions for you:
How do you view the analysis from different technical schools?
Which indicators do you rely on to decide buy or sell points?
Did you have a different answer or insight for this test?
Which indicator works best for you?
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When I analyze setups like this, I pay close attention to how price reacts around key EMAs such as the 25-day and 50-day. A strong bounce from these levels, especially with bullish candlestick patterns like long lower shadows, often signals institutional support and a potential reversal. I also check if EMAs are sloping upward & price is holding above them, which usually confirms a bullish trend.
I don’t rely on lower time frames because they tend to give too many false signals. Instead, I focus on daily structures to spot trend continuation or reversal points, then scale in when both technicals and fundamentals align. This keeps my decisions clear & steady.
@Tiger_comments @TigerStars
1.Moving Averages (MA) : Its purpose is to identify trend direction & potential reversals.
Types : Simple Moving Average (SMA) : smooths price over time.
Exponential Moving Average (EMA) : reacts faster to recent price changes.
Eg : A 20 EMA crossing over a 50 EMA can signal a Bullish trend.
2. Relative Strength Index (RSI) :
Purpose is to measure momentum & identify overbought or oversold conditions.
Scale: 0 to 100. Above 70 is overbought. Below 30 = oversold.
3. On Balance Volume (OBV)
Purpose:to track volume flow to confirm price trends. Rising OBV with rising price = strong bullish trend.
I would use 3 complementary indicators - 1 trend, 1 momentum & 1 volume to avoid cluttering the chart.
Clarity beats complexity.
Always confirm signals with price action & broader market context.
@Tiger_comments @TigerStars @CaptainTiger @TigerClub
@MHh @melson @rL @Universe宇宙 @Wayneqq
Check them in the history - “community distribution“[Miser][Grin][Great]
Common indicators include EMAs (50/200) for trend direction, MACD for momentum, and RSI for entry timing to identify key price levels
Technical indicators react to price rather than predict it, so they guide entries and exits but often lag, requiring combination with price action and market context
Price action combined with volume offers the most reliable insight, while additional tools like RSI, EMAs, and Volume Profile highlight key opportunities for the best entries
What works best is having a consistent, well-tested strategy and discipline in execution, as no technical indicator works perfectly on its own。。。
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@Huat99
@Snowwhite
我个人比较依靠成交量与均线组合判断买卖点。突破时如果没有明显放量，我通常不会追高；而真正的回调确认反转时，配合均线支撑和缩量整理，才是我考虑进场的信号。RSI与MACD我只作辅助，不作为主要决策依据，因为这些指标往往会滞后。
至于“第一次反转突破”，我非常认同它往往是假的。很多时候那是庄家或大资金的“试盘动作”。我会耐心等第二次确认甚至回踩支撑区后再行动。经验告诉我，交易最难的不是看懂图，而是等得住。对我而言，最适合的指标，其实是“耐心”本身。
Keep up the good work.
Definitely love to check the support zones however I won't be able to tell just by judging the candlestick alone.
My chart would definitely have the RSI & this feature called "Autoclimate" which is something I had when I joined Tradewithufos
畫出連接高點和低點的線顯示了可能的停止點。倒數第二根燭臺觸及支撐線但沒有突破，表明可能出現反轉。
最後兩個倒下的燭臺長下影線，確認了反彈的可能性。
在實際交易中，你可以利用斐波那契水平來確認反轉點，並結合成交量等指標來增加信心。
價格首先飆升以清除訂單，然後回落至“價格缺口”區域.
下方的支撐區域是一個很好的買入點。價格目前正在反彈，但請密切關注第二支撐區.若破位，買盤壓力弱，做多邏輯失效。