MARKET CONDITIONS

١٧ يناير ٢٠٢٣

Hello everyone!
We continue the series of training articles.
Today I want to touch on the topic of MARKET CONDITIONS.
Go.

What is the market like?
As you know, the market does not move only up or only down.
The price always makes fluctuations of a wave nature.

What does it mean?

BEARISH TREND

This trend is characterized by the fact that the price updates the previous lows, but cannot update the previous highs.

If you look at the monthly chart, such a movement may consist only of falling candles.
In fact, if you switch to a smaller timeframe, you can see corrective movements.

And this can be observed on all movements.

In a bearish trend, it is best to open short positions.
A good moment to open a position can be the end of the correction, which confirms that buyers are not able to update the maximum, which means that the downtrend is still strong.

RANGE

This period of the market is the most boring, because the price is not particularly moving anywhere.
In fact, there is an accumulation of large positions.
But boring does not mean that it is impossible to make money on it.
The simplest trading tactic under such conditions is to sell from the resistance level and buy from the support level.

Do not forget to put a stop loss, because sooner or later there will be a breakdown.

BULLISH TREND

This trend is characterized by an increase in price, an update of the highs and the inability to update the lows.
The fact that sellers cannot push the price below the previous minimums tells us that the strength is on the buyers' side.

It is best to open long positions and press the updates of the highs.

STRUCTURE

This structure or model: BEARISH TREND - RANGE - BULLISH TREND, will occur very often.
This is exactly how the trend is changing.
At first, the price is controlled by one star, it can be bears and then there will be a downtrend, it can be bulls and then there will be an uptrend.

At some point, the dominant force loses power over the price, and the opposite one gains momentum, at such moments the range begins.
There is a struggle going on here and whoever wins will rule the price.
Sometimes it also happens that after the range, the previous trend continues, which means that the opposing force did not have enough power to change the trend, be prepared for this.


CONCLUSIONS

Do not think that the trend will continue forever.
Do not believe that you know the future and the price will go exactly where you predicted.

Be objective and study the market.

Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻