What causes the cost of a stock to go up, down, or sideways? Most of what occurs in the market is mental. The cost of a stock is set by the passion or conviction of all prospective purchasers and sellers. There should be a customer for each seller, and a seller for each consumer. It must balance out.
The cost of a stock will go up when customers are way more positive. This suggests the requirement for a stock, the orders to buy, is larger than the supply, which is the orders to sell. When the opposite is right the cost of a stock will go down. If consumers and sellers have about equal conviction, the cost of a stock will stay pretty much the same. Understanding this idea is a great start in stock exchange technical research.
Chart reading, often referred to as technical research, provides us with a record of the battle between consumers and sellers. We are ready to visualise who is winning this battle by researching price and volume action. This is done on a short or long term basis. Some researchers also use over-bought and oversold signals as an element of their across-the-board research. I don't use these signals, because markets can actually go down or up, much longer than, and much further than, what the majority believe is attainable.
Chart reading helps us define the power of demand vs the pressure of supply at varied price levels. This gives us a brilliant idea of the likely direction a stock will move. When you know the likely price direction of a stock, you have gone up your odds of success seriously. Profitable trading is all about chances and putting the percentages in your favour.
In the stock market, history does repeat itself quite frequently. This is down to man's nature, which never changes. Human instinct with its feelings like greed, fear, and hope, is what gives us recurring chart patterns.Learning to correctly investigate these patterns, with price and volume research, is the secret to success.
The cost of a stock will go up when customers are way more positive. This suggests the requirement for a stock, the orders to buy, is larger than the supply, which is the orders to sell. When the opposite is right the cost of a stock will go down. If consumers and sellers have about equal conviction, the cost of a stock will stay pretty much the same. Understanding this idea is a great start in stock exchange technical research.
Chart reading, often referred to as technical research, provides us with a record of the battle between consumers and sellers. We are ready to visualise who is winning this battle by researching price and volume action. This is done on a short or long term basis. Some researchers also use over-bought and oversold signals as an element of their across-the-board research. I don't use these signals, because markets can actually go down or up, much longer than, and much further than, what the majority believe is attainable.
Chart reading helps us define the power of demand vs the pressure of supply at varied price levels. This gives us a brilliant idea of the likely direction a stock will move. When you know the likely price direction of a stock, you have gone up your odds of success seriously. Profitable trading is all about chances and putting the percentages in your favour.
In the stock market, history does repeat itself quite frequently. This is down to man's nature, which never changes. Human instinct with its feelings like greed, fear, and hope, is what gives us recurring chart patterns.Learning to correctly investigate these patterns, with price and volume research, is the secret to success.
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