7 Rules TO Analyza a Chart 1.Uptrend or Downtrend Describes the price movement of a financial asset when the overall direction is upward. A formal uptrend is when each successive peak and trough is higher than the ones found earlier in the trend. Downtrend A downtrend is when the price is making overall lower swing highs and lower swing lows. https://www.youtube.com/watch?v=uWY6gMn5L_4 2.Strenght of Trend The Trend Strength Indicator. Trading in the direction of a strong trend reduces risk and increases profit potential. The average directional index (ADX) is used to determine when price is trending strongly. https://www.youtube.com/watch?v=eBBJKbsO8Po 3.Momemtum of Trend hough they may initially appear similar, real differences exist between the concepts of momentum and trend. They are two noncompeting techniques aimed at identifying chances to buy on the upswing and sell on the downswing. https://www.youtube.com/watch?v=vGIL6ICqJ00 4.Risk to Reward Ratio Many investors use a risk/reward ratio to compare the expected returns of an investment to the amount of risk undertaken to capture these returns. https://www.youtube.com/watch?v=TjDMG2nRQ8A https://www.youtube.com/watch?v=O6R-HEevueM 5.Relative Strength Relative strength is a measure of the price trend of a stock or other financial instrument compared to another stock, instrument or industry. It is calculated by taking the price of one asset and dividing it by another. https://www.youtube.com/watch?v=ZUkaLIlb9-Q https://www.youtube.com/watch?v=o8beoSovyB4 6.Maturity of Trend https://www.youtube.com/watch?v=lWVNFMYw0-k 7.Potential entry Point The price at which an investor buys an investment. The entry point is usually a component of a predetermined trading strategy for minimizing investment risk and removing the emotion from trading decisions. https://www.youtube.com/watch?v=UXuXEkCE0po https://www.youtube.com/watch?v=2gt9gLr1xnM https://www.youtube.com/watch?v=YVbdCsLDJ_M If You know These Than Must Follow
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