Market Structure
One of the most important Skill that you need as a trader is the ability to read the market structure, it is critical skill that will allow you to use the right price action strategies in the right market condition . if you can master this skill , when you open your chart , you will be able to answer these important questions . What the crowds are doing ? who is in control of the market buyers or sellers? What is the right time and place to enter or to exit the market and when you need to stay away?. Through your price action analysis , you will experience three types of markets, trending markets , ranging markets , choppy markets.
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5 Ways to Evaluate Stocks Before You Invest
Investing in the stock market can be rewarding, but making the right choices requires thorough analysis. Whether you’re a beginner or an experienced investor, understanding how to evaluate stocks is crucial for building a strong portfolio. In this blog, we’ll explore five powerful methods to analyze stocks, helping you make informed investment decisions 1.Technical Analysis 1.1 Bullish Signal 1.2 Bearish Signal Technical Analysis Very strong Near support and resistance 1.3 Trend Analysis 1.4 Support and Resistance Levels 1.5 RSI(Relative Strength Index) Indicator 2.Fundamental Analysis Stock fundamental analysis involves evaluating a company’s financial health and performance using key parameters. These parameters are divided into quantitative and qualitative factors. 2.1 Financial Statements…
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Choppy Market
A choppy market, also known as a sideways or ranging market, occurs when the price moves within a narrow range without a clear trend. Learn how to identify and trade in such conditions. It lacks strong upward or downward momentum, leading to unpredictable price swings and frequent false breakouts or breakdowns. Choppy markets lack clear direction, making it hard to determine if the market is ranging or trending. Learn how to identify and trade in volatile, noisy conditions. The best way to determine if a market is choppy is just by zooming out on the daily chart and taking in the bigger picture. Notice in the chart above, the price…
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Doji Candlestick
When doji candlestick forms, it indicates that the market opens and closes at the same price. This means there is equality and indecision between buyers and sellers, with no one controlling the market. See the example below. this signal means that the market didn’t decide which direction will take. When this pattern occurs in an uptrend or a downtrend, it indicates that the market is likely to reverse. Interpretation: Reversal Strong: After long uptrend and downtrend Example : Doji Example at Resisitence The chart above shows how the market changed direction after the formation of the Doji candlestick.The market was trending up, that means that buyers were in control of…