๐๐ฆ๐ฉ๐จ๐ซ๐ญ๐๐ง๐ญ ๐๐๐ง๐๐ง๐ญ๐ฌ ๐๐๐ฌ๐๐ซ๐ข๐๐๐ ๐ข๐ง ๐ญ๐ก๐ ๐๐๐ ๐๐ก๐๐จ๐ซ๐ฒ.
You have to Analyse the OvYou have to Analyse the Overall trend of any asset firstly. The principles mentioned by ๐๐ก๐๐ซ๐ฅ๐ฌ ๐๐จ๐ฐ are the basis of the Technical analysis and are also known as the Father of the Technical Analysis.
He mentioned how to look for a trendโs direction by incepting the concept of the ๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐, i.e a trend is up until it makes higher highs following the higher lows (HH-HL) and a trend is down until it makes Lower Lows following the Lower Highs (LL-LH)
Now once the trend is known you can move ahead looking for the strength in the trend by studying the Elliott Wave Theory, Fibonacci Tool concepts.
But, all this we look at should be analyzed in 3 sub-trends of any known trend. For example, If the trend is UP, you will then have to look at its Primary, Secondary, and Minor Trends to get to know from where you can make an ENTRY. These concepts are described in the Dow Theory.
Technical Analysis works best when more historical Prices Trends are taken into context with the demand/supply, Buying selling pressure and then confirming them with Indicators.
To Enter in a trend perfectly you will also have to look into different time frames to get a clear price structure for timing the ENTRY. For example, if you are an Intraday trader then you may select a 3min or 5min time frame for the entry purpose but, you will also have to confirm the trendโs direction and market structure that should be synchronized in the direction of the entry time frame. Here the confirmation time frames for 3min can be 15min and 5min can be 30mins.
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Primary movements represent the broad underlying trend of the market and can last from a few months to many years. These movements are typically referred to as bull and bear markets. Once the primary trend has been identified, it will remain in effect until proven otherwise.
๐๐๐๐จ๐ง๐๐๐ซ๐ฒ ๐๐ซ๐๐ง๐
Secondary movements run counter to the primary trend and are reactionary in nature. In a bull market, a secondary move is considered a correction. In a bear market, secondary moves are sometimes called reaction rallies. A secondary trend is also called an Intermediate trend or retracement trend of the primary trend.
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Daily fluctuations are minor fluctuations that occur within the Primary and Secondary trends. Whatever time frame youโre trading, find your Primary and Secondary trends, and donโt bother with trying to profit from minor (and usually random) trends. It is important to use closing prices since intraday fluctuations are more subject to manipulation.
๐๐ข๐ง๐ค๐๐๐๐ง: https://www.linkedin.com/โฆ/finwings-stock-trading-academy/
๐๐๐๐ค๐๐ง๐ ๐๐ง๐ ๐ฐ๐๐๐ค๐๐๐ฒ๐ฌ ๐๐๐ญ๐๐ก๐๐ฌ ๐ฐ๐ข๐ญ๐ก ๐ ๐ฆ๐๐ฑ๐ข๐ฆ๐ฎ๐ฆ ๐จ๐ ๐ ๐ซ๐๐ ๐ข๐ฌ๐ญ๐ซ๐๐ญ๐ข๐จ๐ง๐ฌ ๐ฉ๐๐ซ ๐๐๐ญ๐๐ก. ๐๐๐ฅ๐ฅ ๐๐จ๐ฐ ๐ฑ – 09773225512
๐๐ฐ๐ข๐ญ๐ญ๐๐ซ: https://lnkd.in/geScFX27
