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TRADING ANALYSIS
17/7/2018
TRADING ANALYSIS
How to describe the trading setup. Trading setup include what do you look for in a market, how to decide on your entry and exit points within each trade, who your best trading partners are and how to communicate with them effectively.
Trading analysis is about predicting the movement of a security based on technical indicators and other factors. Trading analysis allows you to find the best times and places to trade.
One of the most challenging aspects of trading is choosing a strategy. There are many classes of strategies, and each has its adherents. We can summarize the major classes by their basic method.
1. Find a stock that has low expectations and is fairly priced.
2. Analyze the chart to determine if there are any clues that can help us predict future price action.
3. If the stock is a "buy" then we buy when it rises to the resistance level and sell when it drops below support (refer to note on stop loss).
4. If the stock is a "sell" then we sell when it goes above its resistance level.
