Market Discussions

Nothing to see here. Buy ice products.

Wow, so I'd better spend every ISK I have buying up Thulium at any price, right?

Thulium is not mexallion. You can't buy it all. Price will not spike.
If you have bought thulium, my advice is to sell fast.

Unless, for example, it ceases to be the rarest R64 in the game.

Sell naw

There's a candle bar called "hanging man" and one called "gravestone". They are those that happen when someone gets outplayed at the markets and is left with a bunch of overpriced, useless stock.

Hanging man

Gravestone

Notice that in modern western notation they are respectively more known as Inverse Pin Bar (IPB) and Pin Bar (PB).

It is a scam - sell fast!

Ok I had some minutes to provide you a graph showing the Thullium price and how even with just the EvE market graph you can gauge what's going on in a market. I will not cover the many other aspects you can easily extrapolate from the graph, they are covered in detail here.


Despite the fact that EvE graphs are not proper candle bars, the price "yellow dots" upper and lower "barbs" may be approximately read as such. It's of paramount importance noticing that context is all. Therefore the same identical candle could be useless when located in the middle of a range, could say "market exhaustion" at the top of a trend but also "time to buy" if at the bottom.

How to read the graph:

I marked the "gravestone doji" bars with "1", in purple. In EvE we don't have candle "bodies" otherwise we could further separate the real gravestone dojis (thin to null body) from the "shooting stars" (small body). They tell somewhat different stories.

I marked the "hanging man" bars with "2", in cyan.

I marked a bar with "3" (green) that really seems an hanging man but it's not. The context (at the local bottom of price) tells it's a so called "hammer". In modern analysis it's known as "continuity pin bar".


Detailed explanation:

1) Gravestone dojis and shooting stars are still pin bars (confusing, eh?) that show *inversion*. How do you know? Simple. They are above previous bars and their "upper barb" (known as shadow) is very long, indicating lots of sellers => strongly going against the rising trend => possible inversion.
Expecially "tall" bars (taller than the ones right before them) enforce the probability of inversion. This is the case of the first bar. In most cases these bars are not tall and thus they cannot be trusted to safely invert price (therefore we need a so called retracement, covered in other threads of mine).

See the second bar of this family? It's tiny and unusable to go short without a further confirmation.

TLDR: when you see something like these candles at the top of the high of price, you might want to sell.


2) Hanging men are easier to check, they are usually weak-ish bars at the top of price. They exactly represent the guys who read the forums and bought at the top of the price despite price was beginning to fall (the lower "barb", known as shadow).

The two cyan examples require no further explanation, easily spotted. The Donchian Channel makes them even easier to spot, they touch it on the upper limit.

3) That is a proper "hammer". Still a pin bar but context says it's at a local low. The position of its shadow (below) tells that there are many buyers pushing up and this pushing is concord with the ascending trend => continuity bar.

In a RL market a quite daring trader would have bought it for profit. He'd put the stop loss below it (white line marked as "4") and the first take profit at the next important price level (the one right on top of it, usually deducted by a past price stopping there). In the subsequent days, price would fall instead of rising but - as it's known - a pin bar is valid until no other bar goes below the tail (this is why the stop loss is there, in case the candle is invalidated it means you did not understand the market and should really leave it).
Therefore that trader would have stayed in the market and price would have risen (arrow marked as "5") till that small purple candle marked as "1" would have been reached and thus profit be taken.
Now, this would have been a risky trade (close to the top and right after a big trend inversion bar) and would probably give a very bad risk vs reward but still... it works as example to show what price does.

Good! As you see it is starting to crash now! Time to sell like mad cow!-)