- David Capablanca tries to profit from the falling price of a stock by short selling.
- He looks for gaps between price and VWAP, volatility halts, and second breakouts.
- He also reviews stocks’ historical charts to determine where their resistance lines could be.
When a trader looks at a chart, they see the same candles, lines, and bars that every other trader sees. These signals are data points that indicate things like share price and trading volume, to name a few.
But it would be a mistake to assume that everyone who looks at charts interprets the data similarly.
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