How do retail traders fail to decode the market movement?

Consider the case of a trader who enters BSE around 2200 levels in the third week of October 2025.

• The signals that aided his decision included the 9 EMA (Orange Line) crossing the 20 EMA (Black Line) along with a good volume spurt.
  
• The trader decided to exit around 2500 levels with 15% profit.
  
• However, the real breakout often happens when the 9 EMA (Orange Line) and 20 EMA (Black Line) are above the 50 EMA (Blue Line).
  
• The trader failed to understand that after a decent move, the stock undergoes a temporary accumulation phase, and upon volume confirmation, it makes another big movement.
  
• The idea is once you exit the trade, keep watching the price movements along with volume buildup.
  
• There is always a good scope of big momentum as long as the 9 EMA is above the 20 EMA and 50 EMA.
  
• If the trader had persisted in the trade, he could have easily captured a 35% movement.
  
• Or he could have re-entered around 2400 levels to reap the benefit of the entire bull run.
  
• Monitoring these indicators closely can provide valuable insights into future price action and help traders make more informed decisions. Staying disciplined and patient during such trends is crucial for maximising potential gains.