If you can combine technical analysis with what's happening in the world, then you will be a strong player in the market.
Why are the indicators alone not enough?
We often see people entering strongly on excellent technical signals,
And then a single political news drops… and the market flips on them in a second.
Always work on a mix between technical analysis and the political and economic situation, that's what really helps you know when to ride the wave... and when to get off it early.
Let's start from the beginning... what does a quick technical rebound mean?
If the market is dropping heavily and reaches a strong support area, sometimes buyers enter heavily all of a sudden → and the price makes a strong upward movement in a short time.
We call this a quick technical rebound and it is a temporary movement, not a complete direction change, but a nice opportunity if you know how to enter and exit correctly.
So when do you find this opportunity?
Here is where the mix comes in.
First.. from the chart like RSI below 30 or even below 25 and Stochastic below 20 → The market sold more than necessary.
The price touched MA100 or MA200 → strong dynamic supports.
Exited below the Bollinger Bands → The market is overreacting to the decline.
A significant reversal candle (Hammer or Engulfing) + volume has started to increase.
Secondly.. from the news, is there any effective negative news in the market? (Interest rate increases, political tensions...) or the opposite... is there positive news or at least the situation is stable?
How do I combine this then?
Suppose the market dropped significantly because of a rumor about tightening regulations on crypto.
The indicators are telling you there is a rebound opportunity.
✅ RSI below 25
✅ The price touched MA200
✅ A Hammer candle appeared with high volume.
But at the same time... you are following the news and found an official statement reassuring the market that there is currently no intention to tighten regulations.
What time?
✅ Technical rebound + political stability → Excellent entry opportunity
But what if the opposite happens and an actual news comes out tightening real regulations?
❌ At that time, don't take risks even if the indicators say there is a rebound.
Because at that time it would be a false rebound and the market might drop again violently.
The summary of the game when you work on a quick rebound, ask yourself 3 questions.
1️⃣ Does the chart give me clear signals?
2️⃣ Do the news around the market support the rebound or not?
3️⃣ Does the trading volume confirm that liquidity is coming in?
If 3 answers are "yes" → enter.
If one of them is "no" → wait and watch.
In short
Technical analysis alone is not enough. News alone is not enough. But when you combine both correctly, then you become one of the few who ride the wave at the right time... not the ones the market drives.
And don't forget... the mind is the most important indicator in the market. 😉
And this is just an opinion, not financial advice 👻😊
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