Stock Market – Today, we will discuss price action basics. The knowledge of price action is most important to be successful in the market. Suppose A person does not have even inside of the stock market. Then that person can not be successful in the stock market.
If a person wants to be successful in this, then he should take a little knowledge about the stock market. So, friends, I will give you some basic information about the price action in the stock market. You will like it very much, and it will benefit you.
Trend Line In Stock Market-
The trend line is straightforward to catch. It is easy to trade on that as we know something in the market. But We know a little bit that we can do trade and invest very quickly. This is an essential tool in the stock market.
On behalf of the trend line in price action, you can take trade quickly and confidently. Because on the trend line, there are little risks and big rewards. Before jumping into the stock market, I suggest that every trader learns about the technical analysis and trend lines of price action.
Now Let’s talk about how to draw the trend line. While Drawing the trendline. We need to connect the last two swing lows of the market. If the Last swing low is connecting Properly and the trendline degree is not more than 30.
Then it is the golden trade. Based on the trend line in price action, we can also catch the market’s direction and which side the market will move. Trendlines indicate the best data using a single line. A single trendline can indicate the direction of the entire market trend.
Support And Resistance In Stock Market –
Guys, we can also usually say drop and drag. Friends’ Support and Resistance are like the soul of the market. Because on its basis the market works more than 90%. We talk about how to support the resistance in the form here.
Friends, if the market is stopping at any level repeatedly and coming down. And we are going back up after stopping at the station. We call it support and resistance. Friends, how do you create support and resistance in the market?
Regarding the resistance, if the market is touching the same level by time-wise or price-wise gap at one level, then we call it resistance. In other words, we can also call it a supply zone. Its opposite is in the support zone. Resistance is the zone there many seller are waiting for the price.
This is a lovely pattern in the price action. It makes for continuing the trend in the market. But whenever it is made, the market gives excellent momentum. Friends, how is it performed? in this pattern, a dynamic trend line comes from bottom to top.
And opposite to that, another trend line comes from top to bottom. They are also called dynamic support and resistance. And these trendlines together form a triangle.
This is a perfect pattern to trade because whenever this pattern forms, it will give a strong momentum in the market. Because this pattern usually continues in the market. Whenever this pattern forms, do not miss to trade it.
Trendline Channel –
Friends, we have already read this thing. Friends, just like the trend line tells the direction of the trend, similarly, in the price action, two trend lines join together to form a channel, which shows that the market is trading between these two train lines.
The market usually works in channels. Whose call is going up but cutting past swing highs with little? And the market is not breaking the last swing low and doing this repeatedly. So from this, one channel is being created by trendlines. It is straightforward to trade if one gets caught in it once. This is the most useful tool for the chart.
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