Technical Analysis Fundamentals

Stock Market For Beginners:

Learn Stock Market Basics Through Technical Analysis Fundamentals.

In the previous lesson we discussed in detail the Buying Stocks (GREED BAR) (a long or stock buying opportunity).

To understand the stock market concept of GREED BARS, we need to examine technical analysis fundamentals and stock market trading psychology:

Psychology: When day traders, stock market investors or stock market participants witness a solid green bar (GREED BAR)
in the stock market, they know that there is heavy duty institutional buying occurring in that stock.

The stock market psychology at that moment is euphoria.

Why is there Euphoria?

The participants begin to salivate as they begin see dollar signs everywhere.
When there is euphoria in the market or a particular stock, stock market traders know that pay day is bound to be a big one.
Euphoria means big price movements which translate into new Maseratis and many bottles of Cristal champagne once the trade is closed.

It is that simple. When you see a solid green or red bar in the stock market or a particular stock, it means that whichever camp (the bulls or bears) are in control.

If you see a solid red bar you know that the bears have obtained Absolute and Total control of that stock at that time

If you see a solid green bar you know that the bulls have obtained Absolute and Total control of that stock at that time

Stock Market Trading Systems to Employ:

Absolute and Total control in the stock market or of a particular stock is always represented by solid colored candles. These bars have no wicks or tails.

Prior to plunging all your hard earned stock market trading capital into a stock, please take into consideration that this scenario of Absolute and Total control displayed by solid colored bars must take place in a normal market environment.

If you are unsure what a Normal Stock market Environment is, please check this article which clearly defines the difference between normal and abnormal market environments.

In the first section on candlestick charting, we examined Absolute and Total Control Bars for both the bulls and the bears.

If you have not read that section please refer to Technical Analysis Fundamentals, following the syllabus structure will be beneficial to your learning experience.

Stock Market for Beginners:Technical Analysis Fundamentals
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