Understanding Deeper Influences On Market Flow And Price Action
In this second part of how to identify a market direction, we go beyond the basics of identifying just the basic trends and swings and we start to focus on more of the deeper dynamics that can influence how the markets act, especially conted with uncertain times. One such thing to identify is the key distinction of knowing when a market is clearly moving against one that is in question. When direction is unclear or momentum is shifting due to external influences, you must learn how to adapt to these changes and how to move to protect capital.
The market continually moves through waves of uptrends and downtrends, but it also moves through hesitation, something which most people do not consider. There is a lack of consistency in a market that is in question, and it may be caught between conflicting signals. Seeing and identifying these conditions early can prevent you from entering low-probability trades and possibly losing money. You must also understand how downswings—sharp drops within a trend—can signal a reversal or simply a healthy correction in a larger movement. Knowing the difference is to both of these two is the vital key to protecting trades and spotting hidden opportunities.
In this course, you will learn more about identifying a market’s direction. You will go deeper into how external events and indicators can alter and shape market direction, including the impact of geopolitical events, the importance of tracking the Nasdaq 100 indicator for broader sentiment, and how the international markets can play a powerful role in affecting local price behavior.
