How to determine buy and sell

When to buy and when to sell?

Maybe it is a question that is often asked by a trader, especially a novice trader. And the right answer is "Please Do the analysis ..!"

By doing the analysis you will know when to buy and when to sell or even when to be silent and wait until a signal appears.



How to Determine Buy

To determine the buy we must make sure first that the direction of the market will rise.

Some examples of rising market traits:

1. When candlestick chart decreases but body candle decreases
The declining graph does show that the dominant moment is the seller. But when the body candle is smaller then this indicates the start of resistance from the buyer. So the downward pressure will begin to lose by an upward push. As the impulse rises greater than the downward pressure the market begins to rise.

body candle shrink

2. When the market breaks through the nearest resistance line / base line
The resistance line is constructed from at least 2 parallel peaks. These two parallel peaks show that at that level the price is guarded by the seller. However, when the resistance line is successfully broken, it means the seller's position is lost. And of course that to penetrate it requires a strong force, so that by penetrating the resistance line we know that at that time the power of buyers is great. Therefore some time after the resistance penetrated buyer still dominate the market. So the market will continue to rise.

through resistance

3. When the signal indicator moves from the top to below the chart or below the main indicator
Most indicators are built on the development of a moving average that is the average market price in a given period. When the average price is above the chart means the current market movement is weak. And something weak is likely to go down. Therefore when the indicator value moves to the direction of the chart, this indicates the strengthening in the market. And this strengthening has an impact on market growth.

displacement position indicator displacement position indicator

4. As the trend correction rises to a halt
A correction is to ensure that the market direction is correct. So when the correction stops the market will move again in the previous direction.

correction stalled

5. When the market declines but the indicator rises
It has been discussed at no 3, that the value of an indicator is a reflection of market movement conditions. This means that the value of the indicator is the result of market value processing that occurs. So that the direction of the market with the direction of the indicator is the same. So when there are deviations made by the market, then the right direction is the direction of the indicator.

deviation

6. When candlestick bullish body chartnya more elongated
Candlestick body length indicates a dominance of either party whether the buyer or seller. If the bullish candlestick appears with the body longer than the body before it then this shows the stronger dominance of the buyer. Normal condition is the market will continue to rise until the dominance of this buyer broken by seller.

body candle lengthwise

How to Determine Sell

A sign that the market is going down this is the opposite of the market sign will rise. That is :

1. As the candlestick chart rises but the body candle decreases

2. When the market broke through the nearest support line / baseline

3. When the signal indicator moves from the bottom to above the chart or above the main indicator

4. As the trend correction falls to a halt

5. When the market rises but the indicator decreases

6. When the candlestick chart bearish bodynya increasingly elongated



That is some of the characteristics of the market will move up and down that can be used to determine the buy and sell. Therefore when you do the analysis and see the above conditions you can determine the next direction and then decide to open buy or open sell.

How to determine buy and sell above is very effective because it holds on to the basic rules of market movement. But to maximize its use you must familiarize yourself to observe the market conditions in the above manner. Thus your instincts become sharper in recognizing the direction of the next market.

That is how to determine buy and sell, hopefully useful. How to determine buy and sell more details will be discussed on other pages.

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