This is what I saw on today's 5-minute chart (in Adelaide time, so add 30 minutes). See the numbers on the chart below:
- 9.30 am - a gap up of 22% to 0.074 on no news [1]
- 9.40 - surge up to 0.098 - 32% up on the opening candle, with a massive upper wick [2]
- 9.40 - an RSI of 89
- 9.45 - selloff underway, a break below the opening candle, and close at 0.068 [3]
- 10.00 - a few minutes of consolidation [4]
- 10.10 - a 5-candle rally begins, breaking above VWAP (yellow line) [5]
- 10.35 - a 3-line strike that gives up half of the rally, back down to VWAP [6]
- 10.55 - a 4-candle rally back up to 0.083, with an early sign of intraday resistance [7]
- 10.55 - something of a cup and handle formation (blue curve) - but it never broke above
- 11.15 - three descending red candles countered by a green candle. Another test of resistance [8]
- 11.20 - big red candle - on high volume - swiftly pulling back to VWAP [9]
- 12.40 - about an hour of relative calm with a final test of VWAP [10]
- 12.45 - then the bottom fell out
- 12.50 - a gap down and a 25% fire sale down to 0.06 (intraday support) [11]
- 1.00 - what's this, a dead cat bounce ending as a green marubozu on high volume? [12]
- 1.00 - and a bounce off 30 RSI?
- 1.05 - what's this, a gap up (by one pip), then up to 0.075?
- 1.05 - alas, it closed as a gravestone doji (cue ominous music) [14]
- 2.20 - double bottom down to 0.06, which closed beneath support at 0.059 [15]
- 3.00 - you get the drift - and some people's trading platforms went offline to boot!
- 3.20 - another gap down [16]
- 3.40 - closing single price auction finishes at 0.056, but preceding gap not filled.
For some people, today would have been a disaster, but for others, they would have made a profit, and I think this can be missed by some amongst all the volatile price action. For example,
a mid-morning purchase (breaking above VWAP) could have returned a small profit, if selling at intraday resistance). But hats off to @HungHing who bought at 0.06 (point 11 below) - and announced it on the day trading forum (post 53899643) - and then sold at 0.066 for a 10% profit in 10 minutes or less (point 12).
But for those who bought in the morning and decided to hold the bag...Bottom line - every 5-minute chart tells a story, and it's up to us to recognise the patterns and indicators.
So BIR closed at -6.67% from yesterday, which looks more spectacular on the daily chart:
(20min delay)