Technical analysis stock market – Read the graph perfectly

In these few articles, we have discussed several fundamental concepts for Technical analysis stock market, including how to read a candlestick chart, and established that trading means creating your system of rules. This last aspect is fundamental because we will never be able to trade effectively without an effective system of rules.

The purpose of these rules is not just to allow you to make a profit but rather to allow the trader to ease the psychological pressure to which he will inevitably be exposed until the moment he closes the operation and to establish instead how to realize the profit each operator is based on what is essentially a real “collection of signals.”

Any news concerning it can trigger a bullish or bearish reaction in the price trend when we operate in a particular market. There is news, such as the possibility of a hard fork or the release of a new version of the platform, which inevitably triggers the rise in prices. Other news, however, can do the exact opposite and sink the value of a coin. For example, the price of crypto may fall if the news spreads that the official wallet of a certain currency is defective or that a certain cryptocurrency is about to be excluded (delisted) from a large platform.

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Understanding how and why news moves the market is easy enough?

If understanding how and why news moves the market is easy enough, it is more difficult to understand how the greed of operators causes price fluctuations. First, we must understand that the price trend is never linear but more resembles the waves, as seen in the above candle charts.

When we begin to imagine the price trend as if it were a wave. We begin to frame two different trends: one short-term in which the price moves between minimums and maximums within what is called a “channel,”.  And at the same time, we find the second trend in progress. More in the long term, which sees the price destined to increase or decrease.

However, this is also true on the contrary. The fears of the market can cause a wave of sales that can lead the individual trader to suffer significant losses. The ability to read the market trends through the price trend on a chart and recognize them. The moments of reversal (both short and long term) in the main trend is classified as “technical analysis.”. What the trader does, in other words, is to use the tools at his disposal to define the trend of the trend. And try to make a profit based on technical analysis.


The bad thing about technical analysis stock market

The bad thing about technical analysis is that it is not an exact science but a statistical calculation. None of the data we get from reading the charts gives us guarantees; although there are more relevant (and more reliable) signals than others, there are no 100% safe trading signals. Moreover, every good trader naturally oscillates between a speculative approach and a more moderate one based on the investment. Consequently, technical analysis is not sufficient for a complete operation on the market, but it is always necessary.

All the concepts we are exposing exist in every type of market; the graphs read the same way on the forex and the cryptocurrency market. Technical analysis is the same whether you invest in stocks or buy coins. And fundamental analysis is a concept that always exists.

When we buy shares, for example, the fundamental technical analysis stock market consists of reading. The financial statements of the company we are going to invest in. For now, let’s focus on knowing some elementary tools. That every trader normally uses in his daily practice to search for trading signals that allow him to make a profit.

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There are obviously several tools available to traders to recognize these trends in the price (some of which we will get to know later,) but in principle, the dynamics we are witnessing are always the same. Since all traders pursue the same goal (making a profit) and all read the same chart at the same time when certain conditions occur all traders will click en masse to take advantage of the opportunity, and here, as mentioned, the greed of the market ends up moving the price.


My Technical Analysis Strategy For Crypto Trading (For Beginners)

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