This means long positions are trapped on top and the price falls or short positions are trapped on the bottom and the price goes up. Bulls trap is highly reliable and successful because the bulls have already bought and held the positions, which when exited results in a huge price fall due to panic. But, when bears are trapped at the bottom, people fear entering in fresh longs. So, demand is lowe
Hey there, fellow market enthusiast! Have you ever wondered about those mysterious bars or lines that show up below stock price charts? Well, those are volume indicators, and they're pretty neat tools that can help you make sense of what's happening in the stock market. Let's dive in and explore what volume indicators are all about!
Technical analysis is like being a detective in the stock market. Instead of looking at a company's financial health or the latest news, technical analysts focus on patterns in stock prices and trading volumes. They believe that history tends to repeat itself in the markets, and by studying past trends, they can make educated guesses about future price movements as per previous market history.