🔹 Part 3: Understanding Market Trends & Indicators
To trade effectively and profitably, it's important to understand market trends and use technical indicators. These tools help predict price movements and identify the best moments to enter or exit the market.
📌 Key Market Trends & Indicators:
✅ Support & Resistance: These are price levels where assets typically stop rising (resistance) or falling (support). Identifying these levels is crucial for making informed trading decisions.
✅ Candlestick Patterns: By analyzing bullish (upward) and bearish (downward) candlesticks, you can gauge the market's sentiment and direction.
✅ RSI (Relative Strength Index): This momentum indicator shows if an asset is overbought (above 70) or oversold (below 30), helping you time your entries and exits.
✅ Moving Averages (MA & EMA): Moving averages smooth out price movements over time and help you identify the overall market trend.
✅ MACD (Moving Average Convergence Divergence): A trend-following indicator that helps spot potential reversals in price movements, allowing you to react early to market changes.
Mastering these indicators will give you an edge in trading and reduce unnecessary risks.
📌 Next Topic: Risk Management & How to Protect Your Funds