Part6

🔹 Combining Tools – How to Build a Stronger Analysis

Now that you’ve learned about candlesticks, support & resistance, trendlines, and indicators — the next step is to combine them.
This gives you stronger signals and reduces false trades.

🔸 Why Combine Tools?
No single tool is perfect. But when multiple tools agree, the signal is more reliable.
📌 Example:
RSI shows oversold
Price hits a support level
Bullish candlestick appears
→ Higher chance the price will bounce.

🔸 How to Combine Tools in Practice:

🟢 1. Identify the Trend
Use trendlines or moving averages to see if the market is bullish or bearish.

🟢 2. Mark Key Levels
Draw support and resistance zones.

🟢 3. Look for Candlestick Signals
Watch for patterns like bullish engulfing, hammer, or shooting star near key levels.

🟢 4. Confirm with an Indicator
Use RSI or MACD to confirm strength or weakness in the move.

✅ Example Strategy Flow:

Price reaches support zone

RSI < 30 (oversold)

Bullish candlestick forms
→ Enter a long position with stop-loss below support

📌 In Part 7, we’ll wrap up this lesson by highlighting common mistakes in technical analysis and how to avoid them.

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