#BNBATH880 Successful Market Reading (1)
It’s not just about following prices on the screen, but it’s an art + science + discipline. A successful trader usually combines technical analysis, fundamental analysis, and understanding market behavior (the psychology of traders). Here are some basic steps to help you read the market consciously:
1. Reading the Trend
The first thing a trader looks for: Is the market bullish, bearish, or sideways?
Using tools like moving averages or trend lines quickly clarifies the picture.
The golden rule: “The trend is your friend” – don’t go against it unless you have very strong reasons.
2. Support and Resistance Levels
Support = Levels where the decline often stops due to buyers entering.
Resistance = Levels where the rise stops due to selling pressure.