Maybe it is a question that is often asked by a trader, especially a novice trader. And the right answer is please doing the analysis. By doing the analysis of stock market, you will know when to buy and when to sell or even when to be silent and wait until a signal appears. To determine the buy we must make sure first that the direction of the market will rise. Here are the characteristics of the market will go up!
1. When candlestick chart decreases but body candle decreases
The declining graph does show that the dominant moment is the seller. But when the body candle is smaller means it indicates the start of resistance from the buyer. So the downward pressure will begin to lose by an upward push. As the impulse rises greater than the downward pressure the market begins to rise.
2. When the market breaks through the nearest resistance line/base line
The resistance line is constructed from at least 2 parallel peaks. These two parallel peaks show that at that level the price is guarded by the seller. However, when the resistance line is successfully broken, it means the seller’s position is lost. And of course, that to penetrate it requires a strong force, so that by penetrating the resistance line we know that at that time the power of buyers is great. Therefore sometime after the resistance penetrated buyer still dominates the market. So the market will continue to rise.
3. When the signal indicator moves from the top to below the chart or below the main indicator
Most indicators are built on the development of a moving average that is the average market price in a given period. When the average price is above the chart means the current market movement is weak. And something weak is likely to go down. Therefore when the indicator value moves to the direction of the chart, this indicates the strengthening of the market. And this strengthening has an impact on market growth.
Therefore, what if the stock goes down? Well, a sign that the market is going down is the opposite of a market sign going up. Here’s the review!
1. As the candlestick chart rises but the body candle decreases
2. When the market broke through the nearest support line / baseline
3. When the signal indicator moves from the bottom to above the chart or above the main indicator