What Is This Flowchart?
This flowchart is a step-by-step decision tool that helps you plan your trades by analyzing the market trend and price levels before you make any moves. It helps reduce emotional decisions and guides you toward smarter, more calculated trading.
---
Step-by-Step Explanation
Step 1: Ask Yourself – What Is the Current Trend?
Look at the overall direction of the market:
Bullish: The price is generally going up.
Bearish: The price is generally going down.
Sideways: The price is moving back and forth within a range (no clear direction).
---
Step 2: Based on the Trend, Use the Next Step
If the trend is Bullish (Upward):
Check if the price is at a support level (a level where price tends to stop falling and bounce back up).
If YES: It’s a good time to BUY.
If NO: Don’t trade yet. Wait for a better opportunity.
If the trend is Bearish (Downward):
Check if the price is at a resistance level (a level where price tends to stop rising and drop back down).
If YES: It’s a good time to SELL.
If NO: Don’t trade. Be patient.
If the trend is Sideways (No clear direction):
Wait for a breakout (when price breaks out above resistance or below support). Don’t make a move until a clear trend forms.
---
Why Use This Flowchart?
Keeps your decisions simple and logical.
Helps you avoid trading in uncertain market conditions.
Guides you to enter trades with better risk-reward setups.
Reduces impulsive and emotional trading.
---
Key Trading Terms for Beginners
Trend: The general direction of the market (up, down, or sideways).
Support: A price level where the asset tends to stop falling.
Resistance: A price level where the asset tends to stop rising.
Breakout: When the price moves above resistance or below support, signaling a potential trend change.
