Here is a step -by -step manual for market trends analysis:
Step 1: Select Schedule
Select the graph you want to analyze. Popular options are:
- Every day (one day, 5 days or 30 days charts)
- Week (1 week, 2 weeks or 4 weeks charts)
- Month (3 months, 6 months or 12 months charts)
Step 2: Identify market trees
Understand the market trend. General trends are:
- Growth (upward pace)
- Landing (downward pace)
- At a tied distance
- Medium return
Step 3: Analyze the amount of trade
Get traded amount information from a reliable source, for example:
- Replace application subscriptions
- EOD (end of day) data flow
- Market information providers such as Alpha Vandage or Yahoo Finance
Choose the graphics and the market trend you chose in step 1.
Step 4: Calculate Mobile average
Calculate the variable average to identify the pace. Popular options are:
- Simple sliding average (sma)
- Exponential sliding medium (EMA)
- Relative Endurance Index (RSI)
Use step 3 and calculate variable average indicators with the following formulas:
- Sma = (close price x weighted average) / total volume
EMA = (close price x weighted average) + (open price x weighted average)) / (2 total volume)
- RSI = 100 – (100 / (1 + RS))
Step 5: Analyze volume -related indicators
Determine the number of indicators that help determine market development. Popular options are:
- Balance (OBV): Calculates the difference between buying and sales volumes
- Savings/distribution line (adli): indicates when the warehouse becomes overloaded or exceeded
- Balance Volume Index (OBI): OBV Lines Weighed in a specified period
Step 6: visualize volume trends
Use visualization tools to analyze the volume trends. Popular options are:
- Mapping of software such as Tradingview, Thincktorswim or Ninjatrader
- Time row charts with volume information
The chart visualizes variable average indicators, volume indicators and other trend lines.
Step 7: make deliberate trade decisions
Use your analysis to accept trade -based information. Let’s look at factors like:
- Trends associated with volume (eg growing OBV or adli level)
- Moves average transnational exchange
- RSI levels
Combine these factors with other technical and basic analysis tools from your trade decisions.
By taking these activities, you can analyze market trade in market trends and make deliberate trade decisions.