The indicators and measurements that technical analysts use to determine the trend are not crystal balls that perfectly predict the future. Under certain market conditions, these tools may not work. Also, a trend may suddenly change direction without warning. Thus, the technical investor must be aware of risks and protect against such occurrences causing losses.

It's crucial to remember that past performance does not guarantee future results, and real trading involves costs that need to be factored in for accurate risk management and profit analysis.

By observing volume patterns alongside price movements, traders and investors can gain valuable insights into market sentiment and the strength of prevailing trends. Volume confirmation serves as a crucial tool for making informed decisions and identifying potential trend reversals or continuations.

Understanding market phases is crucial for navigating the complexities of financial markets. By discerning accumulation, trending, and distribution phases, practitioners can make informed decisions, leveraging market dynamics to their advantage. Through a blend of technical analysis and market sentiment evaluation, participants can adapt to evolving market conditions and capitalize on emerging opportunities.

Contracts are crucial for trade activity, forming the backbone of markets. Understanding them is essential for prospective traders to ensure smooth and fair transactions.

Both strategies have their own benefits which depend on personal risk and investment horizon. In this article, we will explore them further.

Understanding the Greeks empowers you to make smarter moves and navigate the options market with confidence.

In technical terms, there are two main categories of price gaps: up gaps and down gaps. An up gap materializes when the lowest price aftermarket closure is higher than the highest price from the preceding trading day. Typically interpreted as bullish signals in technical analysis, up gaps indicate positive market sentiment. On the other hand, a down gap occurs when the highest price aftermarket closure is lower than the lowest price from the previous trading day. Down gaps are generally perceived as bearish indications, signalling negative market sentiment.

This article unlocks the secrets of open interest, revealing its power to gauge market sentiment and inform your trading decisions. Learn how strike prices and time to expiry influence open interest, and uncover valuable insights.

Mastering futures market analysis involves a blend of technical expertise, fundamental understanding, and the right set of tools. In this article, we will further explore it.

This article aims to demystify futures and options, providing a clear understanding of their function, risks, and benefits.