📢 Do you know when is the right time to buy ? As a beginner, almost 90% of traders make mistakes in buying random price levels blindly.
🤔 When, where and why should you buy and sell, there are some important key levels in the chart which you have to identify and act accordingly.
🫡 Have you heard the popular investor saying: “the trend is your friend?” Well it’s true, actually the trend is your best friend.
⚠️ Let's dive into it
👉I hope everyone is familiar with the trading view. (It is a charting tool we use to mark up on charts) Use it for price action and technical analysis.
1/ What is Trend Analysis?
Trend analysis is a way to identify the direction of the market, and it is a study of price action to analyse the trend change or reversal. By spotting trend reversal early, we can ride the wave and make well decisions.
2/ Identifying Uptrends & Downtrends
In an uptrend is made up of rising levels and peaks with formation of higher highs and higher lows. Whereas, a downtrend is made up of decline in price level with formation of lower highs and lower lows.
3/ Sideways (Consolidation) Trend
A sideways trend (consolidation) is when prices move sideways in a horizontal range. In this trend we play range trading level to level. (I'll drop a proper guide on this in the upcoming articles)
4/ Using Trend Lines
Basic and most used tools are trend lines, Everyone uses trend lines for precise analysis of market and price. For marking charts with support, resistance and any other patterns.
5/ Chart Patterns
Chart patterns are the art of reading the language of price movements on a chart.
To make trading decisions, traders combine these insights with other forms of technical analysis, such as technical indicators or candlestick patterns.
1. Price Channels Pattern
2. Ascending Triangle & Descending
Triangle
3. Head & Shoulders
4. Triple & Double Top & Bottom
5. Rising Wedge & Falling Wedge
Learn this, and let me know in comments if you want more examples 🫡
⚠️ Note : Patterns doesn't work 100% of the time, we need higher time frame confluence with this, also we have to know our daily bias ⚠️
🎯 Will learn new things in upcoming articles, till then Keep Following me 😎