Market Analysis Financial Markets

This video is a quick lesson on market analysis for day traders. Remember that this text will only make sense if you use it as support after watching the video.

OK, so here we are. The red vertical line is when the market opened. It was 8:30 for me or 9:30 central.

So I start by doing a quick look through. And you can instantly see that the market is going down. It’s not a beautiful downtrend, but it’s still going down.

So when I open up my charts and start to look at what’s happening here I notice that the market kept going down however I also start seeing some serious divergence.

When I see divergence, that is a huge telltale sign that the market is either coming to a serious slowdown or it’s going to change completely.

Until this clears up, I don’t even like to think of anything going on.

And just as I expected, the market totally changed direction.

So I start to look for my earliest possible move but because of the yellow line not being exactly where I wanted to. I didn’t get in.

However, because there was no divergence. It looks like a really strong push. It’s still very early in the trend. So I got in right here.

One tick away from my 610 EMA line right there. I have my stop in place of five ticks and my profit at five ticks.

So I just look for the next valid trade and the market hit my target. But at this point, I’m starting to see some serious divergence. And I’m going to sit this out again, because at this point I do have a little bit of an area. I’m starting to wonder what’s going on.

It’s just not very compelling to me at the moment.

Now I’m just sitting and waiting and I see that it gave me a really nice push so I entered because there’s no divergence.

This was what I call a failure trade because here it totally shifted direction and it didn’t continue down and went up.

So, I got stopped out. That happens!

It was a very good trade. I will take this trade a thousand times again and again. Things happen, a loss is a loss. What can I do?

Moving on, the market changed direction, but it didn’t go through the yellow line.

It’s telling me that maybe something’s going to that it’s going to continue, although I do need to see some serious confirmation. It gave it to me. It went straight up.

At that point, I decided to go back in here, I left a little higher and got my five ticks.

And this was all for the day.

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