The term Market Cycle refers to the period between the two latest highs or lows in case of any security (stock, bonds, commodity, currency, etc) In simple words, it refers to the phases in which the price of any security moves
STAGES OF THE MARKET (MARKET CYCLE)
The term Market Cycle refers to the period between the two latest highs or lows in case of any security (stock, bonds, commodity, currency, etc) In simple words, it refers to the phases in which the price of any security moves.
Although, prices of securities repeatedly go up and down, market participants who trade in them are interested in knowing the patterns through which prices normally move These price patterns are known as Stages of the Market.
There is a well known saying which can be applied to trading. “We cannot direct the wind, but we can adjust the sails.” Knowing what direction the wind is coming from and its speed is what makes a good sailor. Similarly, understanding stages of market and how price moves during these stages helps a trader to identify new trading opportunities and lower their trading risk. Hence before proceeding further, we first need to understand these stages of the market.
STAGES OF THE MARKET
A trader who learns to recognize each of these phases or stages and is able to change his style of trading accordingly, then he will definitely be profitable in trading.
STAGES OF THE MARKET
It has been observed in the market that traders usually behave in a certain way at certain times and those behaviors can be captured through important stages of the market Hence by studying the structure of the market, one come to know in which way the majority of the marke participants are trading in securities.
