Types of Markets in TradingView Land !!!๐จโ๐ซ
์
๋ฐ์ดํธ๋จ
Hello๐ dear traders. I am Pejman๐ฆ, and today I want to explain the types of markets๐ with another story from TradingView๐ข.
Maybe you love the world of animation๐ถ like me, and I'm trying to make the trading world as beautiful and colorful as the animation๐ถ world๐. So let's dive into another Tradingview๐ข land story.
Once upon a timeโณ, in Hundred Acre Wood, Christopher Robin decides to go to Stocktopia to live with other traders and try to learn trading skills๐.
Since Winnie the Pooh๐งธ likes Christopher Robin very much, he and his friends decided to go with him and move to the city๐ of Stocktopia.
They all knew that the path might be long and complicated๐ข, so they decided to compare different Types of Markets๐ and talk about markets๐ along the way๐ฃ.
Do you know the Wise Owl ๐ฆ? He always has many experiences of everything and explains them loudly.
On the other hand, he had a lot of experience in technical analysis and said: When I was a beginner, I was baffled๐ and even lost a lot of money๐ค because I didn't have a good perception of the market๐.
When my buy orders were filled, the stock would face a crash๐ฅ. And when I was selling, green candles๐ jumped one after the other. Annoying!๐ก
I only found out why when I went to Stocktopia and realized that the market๐ has its own types.
Trends are essential in the market๐, and you need to learn to recognize trends. For training, first, I had to know what technical analysis๐ and its benefits are.
There was a moment something caught my eyes๐ when I was surfing๐โโ๏ธ on a website called โTradingview,โ and I opened the post to see what technical analysis is.๐
During my trading, I learned three types of markets๐. Bullish๐ข, Bearish๐ด & Range market๐.
Tiger๐ฏ: Whoo Whoo Whoooooo! I liked the name of the Bullish trend๐ข. Can we start from that first? What is a Bullish trend๐ข?
The Wise Owl๐ฆ showed Tiger๐ฏ a chart from the book that was with him and said:
Dear Tiger๐ฏ, to find a Bullish๐ข market๐, you must first draw a trendline like a dynamic support trend line.
Do you remember dynamic support and resistance lines? If you don't know these lines, it is better to read the story of Princess๐ธ Snowโ๏ธWhite Chart and Trader Dwarfs before hearing the story of the market๐ types.๐
By the way, the Bullish๐ข market๐ is very similar to Tiger๐ฏ. In the Bullish ๐ขtrend, buyers are happy and positive emotions are seen in the market๐ atmosphere.
There are more buyers than sellers. That is, buyers hope for the growth of a stock.
In the Bullish trend๐ข, you must be fast, so that you donโt lose opportunities.
As you can see in the chart, the price inflates more like a balloon๐. It goes Higher High (HH)every time and forms a Higher Low(HL)๐ป than the previous one.
But no Bullish trend๐ข is permanent.
The market๐ will experience a crash eventually. So you have to be smart because shopping will only sometimes be profitable. You will get bloody candles if you wait to buy them in time.
The Wise Owl ๐ฆ continued: The Bullish market๐ has conditions that I will explain based on my experience:
This type of trend is called a Bullish market๐ because when the bulls๐ข want to attack, they raise their horns from the bottom to the top. And the buyers increase the stock higher and higher by buying.
Christopher Robin asked: What if Higher High(HH) doesnโt touch the previous High๐ป?
The Wise Owl๐ฆ said: This is a sign of a strong Bullish trend๐ข. If you see such an event, prepare your dollars for shopping. Does anyone have any other questions?
Eeyore said: What is the trend of Bearish๐ด? Why is it named like this?
Wise Owl๐ฆ: How interesting that Eeyore himself asked this question because the Bearish trend๐ด is exactly like Eeyore. Ivor John has some negative feelings about him.
Shareholders also feel disappointment๐ฉ and fear๐ฑ in the trend. Because of this, the number of buyers decreases, and the number of sellers increases.
Candles turn red like roses๐น; the more sellers there are, the bigger this red flower garden๐ก will be.
Highs and Lows๐ป form one after the other lowerโฌ๏ธ and lowerโฌ๏ธ.
In a downward trend๐ป, if you are in a one-sided market๐, you should sell your shares, but if the market๐ is two-sided, you can present yourself for a sell/short position.
In this trend, negative emotions may dominate the market๐, but sellers will be happy.
Like the upward trend, the downward trend also has its conditions. Can you guess them before I say them?
Po said: Ah, in the growth trend, each High๐ป should be formed lowerโฌ๏ธ than the previous High(LH)๐ป, and each Low should be formed below the previous one(LL).
On the other hand, if the price falls below a Low in the downward trend, it is better not to return above that Low.
The Wise Owl๐ฆ: It was great, Pooh๐งธ. Now let's take a look at this Bearish trend๐ด chart.
As you can see, there is no news of going up(HH)๐บ in downward trends๐ป. Instead, we see Lower Lows(LL) and Lower Highs(LH).
But the market๐ is only sometimes bullish๐ข or consistently bearish๐ด. Does anyone remember the name of the third type of market๐ that I mentioned?
Piglet answered with a bit of stress: Ummm, I think it was Range Market๐.
Wise Owl๐ฆ: Hohohoho, you are right, Piglet. But don't be afraid and don't stress because this market๐ has no particular trend.
If you looked at the chart and could not find an upward๐บ or downward trend๐ป, the sea market๐ is tame, and no waves move the candles up๐บ or down๐ป.
The number of buyers and sellers in the Range market๐ is almost equal. In the market๐, Range traders are like piglets.
A group of them have hope for stocks and buy with confidence, and another group is still afraid, like piglets, and thinks that the value of their shares may decrease. So they sell it.
Neither bears๐ด or bulls๐ข win in the Range market๐ because they need more trading volume to pull the market๐ in the same direction and form a strong up๐บ or down๐ป movement.
In the market๐, the price range is involved in two Ranges: buy or demand Range and sell or supply Range.
The support zone pushes the price upwards๐บ in the buying Range, but the resistance one does not allow the price to advance.
Therefore, the price is passed between these Ranges like a yo-yo until one of the parties enters more volume and breaks this price compression. The head will run away from one side when the price is done.
As you can see in the picture, finally, the sellers ran away from the price :) And the bears๐ด won over the bulls๐ข.
Rabbit: I have heard that most financial markets are Range, and itโs more difficult to trade in this type of market. By the way, I don't want to rush, but I guess it's time to tell us the use of all this information.
The Wise Owl๐ฆ laughed and replied: "Hey, you didn't rush. Now that you are familiar with different types of markets๐, it is time to learn how to trade in these markets๐."
You must first draw trendlines in trending markets๐ to get a general view of the chosen stock๐. Then you can take a position in the direction of the trend.
Be sure to remember that youโre entering at the right points. Take your time, because waiting is a flower that doesnโt grow in everyone's garden.
The owl๐ฆ opened a new page and showed a downward trend๐ป, which later turned into an upward trend๐บ. Owl๐ฆ continued:
As you can see from the chart below, the price is caught under the bears' claws, and the market๐ is bearish๐ด. It has formed Lower Lows(LL) and Lower Highs(LH).
But after the Bullish engulfing candlestick pattern, the trend changed and turned into a Bullish๐ข market๐.
If you want to learn about candlesticks and how to trade with them, you can go to the following post because I have collected how to trade with all candlestick patterns in this post.๐
As you know, the more the price collides with a trendline๐, the more valid the trendline will be. So these lines๐ will become valuable, like support or resistance lines๐.
In this example, we learned how effective candlesticks could be in identifying or finding the end of trends.
Now it's the turn of the Range market๐, and it is possible to trade in this market๐ considering the volatility of the trend.
In the Range market๐, as I said, the price is like a small fish๐ stuck in a fast Eeyore.
The flow of water๐ง and the flow of buyers and sellers move this fish๐ into the Eeyore bed๐.
As a trader, if you want to catch fish๐ from this water, you must wait until it approaches one of the Eeyore beds๐.
Up๐บ or down๐ป bed, i.e., support line or resistance line. You can buy when you see the price on the support line, and when you see it on the resistance line, it is time to sell.
Rabbit said: Haha. That is very easy. Buy low and sell high.
The wise owl laughed๐ and said: You are exactly right. Trading in this market๐ may seem simple, but this fish๐ can escape anytime.
Trading in Range Market๐ is like eating a sandwich๐ฅช. If you press your sandwich๐ฅช too much, the fillings of the sandwich๐ฅช maybe spilled out from the top or bottom.
Everyone heard the sound of Po's stomach and laughed๐. Po said: We have been walking for a long time, and I also ate my honey๐ฏ on the way. How much is left?
Christopher Robin looked around with his camera๐ธ and said we're finally there. I can see the lights๐ก of Trading Wave๐ Land๐ก.
The Wise Owl๐ฆ continued: Now, knowing the types of markets๐, you can learn more than technical analysis in this land.
All of them went to the land of Trading Wave๐, happy๐ that they got good information along the way๐ฃ by heaRange about the experiences of the wise owl.
If you want to learn how to trade well like the people of this land๐ก, practice today's tips and join me every week because I have many stories to tell about this market๐.
This land๐ก is full of traders who lost their capital๐ธ and became disappointed๐ without carefulness and practice. If you don't want to be one of them, remember to manage your capital๐ธ and training.
I hope you are always healthy and prosperous๐.
Maybe you love the world of animation๐ถ like me, and I'm trying to make the trading world as beautiful and colorful as the animation๐ถ world๐. So let's dive into another Tradingview๐ข land story.
Once upon a timeโณ, in Hundred Acre Wood, Christopher Robin decides to go to Stocktopia to live with other traders and try to learn trading skills๐.
Since Winnie the Pooh๐งธ likes Christopher Robin very much, he and his friends decided to go with him and move to the city๐ of Stocktopia.
They all knew that the path might be long and complicated๐ข, so they decided to compare different Types of Markets๐ and talk about markets๐ along the way๐ฃ.
Do you know the Wise Owl ๐ฆ? He always has many experiences of everything and explains them loudly.
On the other hand, he had a lot of experience in technical analysis and said: When I was a beginner, I was baffled๐ and even lost a lot of money๐ค because I didn't have a good perception of the market๐.
When my buy orders were filled, the stock would face a crash๐ฅ. And when I was selling, green candles๐ jumped one after the other. Annoying!๐ก
I only found out why when I went to Stocktopia and realized that the market๐ has its own types.
Trends are essential in the market๐, and you need to learn to recognize trends. For training, first, I had to know what technical analysis๐ and its benefits are.
There was a moment something caught my eyes๐ when I was surfing๐โโ๏ธ on a website called โTradingview,โ and I opened the post to see what technical analysis is.๐
During my trading, I learned three types of markets๐. Bullish๐ข, Bearish๐ด & Range market๐.
Tiger๐ฏ: Whoo Whoo Whoooooo! I liked the name of the Bullish trend๐ข. Can we start from that first? What is a Bullish trend๐ข?
The Wise Owl๐ฆ showed Tiger๐ฏ a chart from the book that was with him and said:
Dear Tiger๐ฏ, to find a Bullish๐ข market๐, you must first draw a trendline like a dynamic support trend line.
Do you remember dynamic support and resistance lines? If you don't know these lines, it is better to read the story of Princess๐ธ Snowโ๏ธWhite Chart and Trader Dwarfs before hearing the story of the market๐ types.๐
By the way, the Bullish๐ข market๐ is very similar to Tiger๐ฏ. In the Bullish ๐ขtrend, buyers are happy and positive emotions are seen in the market๐ atmosphere.
There are more buyers than sellers. That is, buyers hope for the growth of a stock.
In the Bullish trend๐ข, you must be fast, so that you donโt lose opportunities.
As you can see in the chart, the price inflates more like a balloon๐. It goes Higher High (HH)every time and forms a Higher Low(HL)๐ป than the previous one.
But no Bullish trend๐ข is permanent.
The market๐ will experience a crash eventually. So you have to be smart because shopping will only sometimes be profitable. You will get bloody candles if you wait to buy them in time.
The Wise Owl ๐ฆ continued: The Bullish market๐ has conditions that I will explain based on my experience:
- Each Low should be at least one step higher than the previous one and make a Higher Low(HL) like the Tiger๐ฏ.
- Usually, each High๐ป is formed one step Higher High(HH) than the previous one.
- Preferably, when the price rises above a High๐ป, it is better not to return below it.
This type of trend is called a Bullish market๐ because when the bulls๐ข want to attack, they raise their horns from the bottom to the top. And the buyers increase the stock higher and higher by buying.
Christopher Robin asked: What if Higher High(HH) doesnโt touch the previous High๐ป?
The Wise Owl๐ฆ said: This is a sign of a strong Bullish trend๐ข. If you see such an event, prepare your dollars for shopping. Does anyone have any other questions?
Eeyore said: What is the trend of Bearish๐ด? Why is it named like this?
Wise Owl๐ฆ: How interesting that Eeyore himself asked this question because the Bearish trend๐ด is exactly like Eeyore. Ivor John has some negative feelings about him.
Shareholders also feel disappointment๐ฉ and fear๐ฑ in the trend. Because of this, the number of buyers decreases, and the number of sellers increases.
Candles turn red like roses๐น; the more sellers there are, the bigger this red flower garden๐ก will be.
Highs and Lows๐ป form one after the other lowerโฌ๏ธ and lowerโฌ๏ธ.
In a downward trend๐ป, if you are in a one-sided market๐, you should sell your shares, but if the market๐ is two-sided, you can present yourself for a sell/short position.
In this trend, negative emotions may dominate the market๐, but sellers will be happy.
Like the upward trend, the downward trend also has its conditions. Can you guess them before I say them?
Po said: Ah, in the growth trend, each High๐ป should be formed lowerโฌ๏ธ than the previous High(LH)๐ป, and each Low should be formed below the previous one(LL).
On the other hand, if the price falls below a Low in the downward trend, it is better not to return above that Low.
The Wise Owl๐ฆ: It was great, Pooh๐งธ. Now let's take a look at this Bearish trend๐ด chart.
As you can see, there is no news of going up(HH)๐บ in downward trends๐ป. Instead, we see Lower Lows(LL) and Lower Highs(LH).
But the market๐ is only sometimes bullish๐ข or consistently bearish๐ด. Does anyone remember the name of the third type of market๐ that I mentioned?
Piglet answered with a bit of stress: Ummm, I think it was Range Market๐.
Wise Owl๐ฆ: Hohohoho, you are right, Piglet. But don't be afraid and don't stress because this market๐ has no particular trend.
If you looked at the chart and could not find an upward๐บ or downward trend๐ป, the sea market๐ is tame, and no waves move the candles up๐บ or down๐ป.
The number of buyers and sellers in the Range market๐ is almost equal. In the market๐, Range traders are like piglets.
A group of them have hope for stocks and buy with confidence, and another group is still afraid, like piglets, and thinks that the value of their shares may decrease. So they sell it.
Neither bears๐ด or bulls๐ข win in the Range market๐ because they need more trading volume to pull the market๐ in the same direction and form a strong up๐บ or down๐ป movement.
In the market๐, the price range is involved in two Ranges: buy or demand Range and sell or supply Range.
The support zone pushes the price upwards๐บ in the buying Range, but the resistance one does not allow the price to advance.
Therefore, the price is passed between these Ranges like a yo-yo until one of the parties enters more volume and breaks this price compression. The head will run away from one side when the price is done.
As you can see in the picture, finally, the sellers ran away from the price :) And the bears๐ด won over the bulls๐ข.
Rabbit: I have heard that most financial markets are Range, and itโs more difficult to trade in this type of market. By the way, I don't want to rush, but I guess it's time to tell us the use of all this information.
The Wise Owl๐ฆ laughed and replied: "Hey, you didn't rush. Now that you are familiar with different types of markets๐, it is time to learn how to trade in these markets๐."
You must first draw trendlines in trending markets๐ to get a general view of the chosen stock๐. Then you can take a position in the direction of the trend.
Be sure to remember that youโre entering at the right points. Take your time, because waiting is a flower that doesnโt grow in everyone's garden.
The owl๐ฆ opened a new page and showed a downward trend๐ป, which later turned into an upward trend๐บ. Owl๐ฆ continued:
As you can see from the chart below, the price is caught under the bears' claws, and the market๐ is bearish๐ด. It has formed Lower Lows(LL) and Lower Highs(LH).
But after the Bullish engulfing candlestick pattern, the trend changed and turned into a Bullish๐ข market๐.
If you want to learn about candlesticks and how to trade with them, you can go to the following post because I have collected how to trade with all candlestick patterns in this post.๐
As you know, the more the price collides with a trendline๐, the more valid the trendline will be. So these lines๐ will become valuable, like support or resistance lines๐.
In this example, we learned how effective candlesticks could be in identifying or finding the end of trends.
Now it's the turn of the Range market๐, and it is possible to trade in this market๐ considering the volatility of the trend.
In the Range market๐, as I said, the price is like a small fish๐ stuck in a fast Eeyore.
The flow of water๐ง and the flow of buyers and sellers move this fish๐ into the Eeyore bed๐.
As a trader, if you want to catch fish๐ from this water, you must wait until it approaches one of the Eeyore beds๐.
Up๐บ or down๐ป bed, i.e., support line or resistance line. You can buy when you see the price on the support line, and when you see it on the resistance line, it is time to sell.
Rabbit said: Haha. That is very easy. Buy low and sell high.
The wise owl laughed๐ and said: You are exactly right. Trading in this market๐ may seem simple, but this fish๐ can escape anytime.
Trading in Range Market๐ is like eating a sandwich๐ฅช. If you press your sandwich๐ฅช too much, the fillings of the sandwich๐ฅช maybe spilled out from the top or bottom.
Everyone heard the sound of Po's stomach and laughed๐. Po said: We have been walking for a long time, and I also ate my honey๐ฏ on the way. How much is left?
Christopher Robin looked around with his camera๐ธ and said we're finally there. I can see the lights๐ก of Trading Wave๐ Land๐ก.
The Wise Owl๐ฆ continued: Now, knowing the types of markets๐, you can learn more than technical analysis in this land.
All of them went to the land of Trading Wave๐, happy๐ that they got good information along the way๐ฃ by heaRange about the experiences of the wise owl.
If you want to learn how to trade well like the people of this land๐ก, practice today's tips and join me every week because I have many stories to tell about this market๐.
This land๐ก is full of traders who lost their capital๐ธ and became disappointed๐ without carefulness and practice. If you don't want to be one of them, remember to manage your capital๐ธ and training.
I hope you are always healthy and prosperous๐.
๋
ธํธ
Did you read a new story (new lesson)?
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