During the December Friday trading session, it is evident that market dynamics have already played out, indicating a clear trend. Given the inherent uncertainty in financial markets, it's crucial to recognize that these projections and target areas are provisional. While predicting future market movements remains challenging, we can make certain assumptions.
The primary strategy here is to identify potential target areas and monitor them closely. By adopting this approach, we allow the market to come to us rather than chase after it, which can lead to unfavorable outcomes. It is essential to emphasize that successful trading demands considerable patience and emotional discipline, making it a challenging but engaging pursuit.
During bear markets or prolonged downtrends, markets often exhibit periods of consolidation or even upward movement. However, it's crucial to interpret these movements in the context of trading volume. Low-volume upward movements typically signal underlying weakness. Sometimes, you may observe what appears to be a "test" of the prevailing trend, typically indicating strength.
A genuine turnaround in a bear market following a test will be swiftly supported by increased trading volume, leading to an immediate price rise. However, suppose the response to this strength indication is lackluster or fails to materialize over an extended period, resulting in sideways movement or a slight decline. In that case, this signifies further weakness in the market. In such cases, the test is discounted, implying that professional investors remain bearish, showing limited interest in the market's upside at that particular moment.
The primary strategy here is to identify potential target areas and monitor them closely. By adopting this approach, we allow the market to come to us rather than chase after it, which can lead to unfavorable outcomes. It is essential to emphasize that successful trading demands considerable patience and emotional discipline, making it a challenging but engaging pursuit.
During bear markets or prolonged downtrends, markets often exhibit periods of consolidation or even upward movement. However, it's crucial to interpret these movements in the context of trading volume. Low-volume upward movements typically signal underlying weakness. Sometimes, you may observe what appears to be a "test" of the prevailing trend, typically indicating strength.
A genuine turnaround in a bear market following a test will be swiftly supported by increased trading volume, leading to an immediate price rise. However, suppose the response to this strength indication is lackluster or fails to materialize over an extended period, resulting in sideways movement or a slight decline. In that case, this signifies further weakness in the market. In such cases, the test is discounted, implying that professional investors remain bearish, showing limited interest in the market's upside at that particular moment.