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4. How To Identify Stock Market Direction (Trends) Part 1

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Want to learn how to gauge the future price of your stock? Part 2: http://www.youtube.com/watch?v=0wL0McpX-l0 Visit: http://marketscientist.in ----------------------------------------­--------------- Learn To Trade - How MarketScientist works: http://marketscientist.in/how-marketscientist-works-faqs/ MarketScientist Courses: http://marketscientist.in/courses/ Follow Prateek's Trading day @ mentor posts : http://marketscientist.in/category/prateek-singh-s-analysistrades-resident-marketscientist/ ----------------------------------------­-------------------------- Transcript market direction is actually referred to in the technical world as "trends" So a stock moving upwards, is in an uptrend And a stock moving downwards is in a downtrend sometimes stocks reach in a no trade zone or a sideways and this happens because as soon as markets go up it forces a situation of supply and when markets fall down it forces a situation of demand coming in. This was seen in the earlier half of December 2012 on the nifty hourly charts. Lets move on, when we use concepts of supply and demand over long periods of time you must realise that psychology exists on all timeframes, Except of course in tick-charts; wherever you have good volume, markets will always behave in the same way if your concept is technically sound. So let's see how you can become your own amateur financial analyst, determining whether your stock that you are stuck in or making a profit, might continue to move up or might continue to move down. Si the first thing we are going to learn is about a rally and a decline A rally and decline are seen on a per bar basis, meaning we look at one bar and then the next. Simply put a rally is an upmove A Decline is simply a down move They together form something more important, which we will discuss later lets look at a rally first, So this is one bar this isn't enough information, the next bar breaks the previous bars high and this continues to happen Now you will notice that every bar is breaking the previous bars high and its also having a higher low. This means the market is in rally mode. Also remember in a real market situation this may not happen consecutively but a general move up is still considered a rally. A decline is just the opposite, and I'm sure intuitively u have understood what I'm about to draw here. So the market falling down each consecutive bar breaking the previous bars low and making a lower low every bar So that's very simple, here is another rally, which makes a new high and here is another decline. so now that we have that, you can see that we have formed a wave structure, markets will always move in waves, markets will never plunge down or move up unless it's an erratic day or days. Over general long periods of time, markets will always move in waves and this is very healthy. So now that we have understood a rally and decline let's move on to swing highs and a swing low. Simply put the meeting point of a rally an upmove and the immediate decline; this tent, mountain or this peak is called a swing high. the opposite of this is a swing low, meaning the meeting point of a decline and the immediate rally is a swing low. Now trends are made up of swing highs and lows, people call these by different names but all technicals follow this because a swing high is a naturally place of resistance, it basically means that the markets rallied hit a supply point, either buying diminished of too much selling happened and we fell, now the longer time frame between a swing high is untouched the more important it becomes. At MarketScientist we follow trend following methods/systems, so awhat we discuss in this video and the next is extremely important, if you don't understand please rewind or you can ask questions by emailing us or writing it in the comments below. Here is a real example of a chart, this chart belongs to nifty and it is basically in downtrend, but what we have to look now is the swing highs and swing lows. I want you to take am moment and try to find the latest swing highs u can see here I'm helping you a bit and marking all of the swing highs on this chart. I've marked them with green circles. Next step is to identify swing lows, now before we proceed I want you to pause and take your time and look at the swing highs and know that you have understood this. We are basically looking for peaks (swing highs) and crests (swing lows). I'm marking the first the swing lows for you and I want you to mark the resting your head or write it down somewhere. Pause this video and find out all the swing lows, we will meet in the next video with the answers.... I'll be waiting for you then.
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Text Comments (119)
IIAlbertII (3 days ago)
Trends / swings reminds me of my wife
LearnApp (3 days ago)
IIAlbertII best comment ever?
Philippe Deleersnyder (11 days ago)
Nice video, i had an awesome knowledge watching this video, i will apply this to my trading plan using my strategy called *Blended Model Strategy* invented by Dmitry, i believe is going to be a great result at the end.
Nice video, i had an awesome knowledge watching this video, i will apply this to my trading plan using my strategy called *Blended Model Strategy* invented by Dmitry, i believe is going to be a great result at the end.
Somber Tempest (3 months ago)
I have to hand it to you, you really broke this down to a simple science. I've been trading for quite some time but in all the classes and mentors I've been in and with, yours was the best explanation.
latest song (3 months ago)
O bhai gunjri h tare avaj
tiffany kadri (4 months ago)
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MANISH KUMAR (6 months ago)
U need protein instead of market trend.
LearnApp (6 months ago)
Thank you sir, checkout the latest video. I stream live positions of my trades :)
MANISH KUMAR (6 months ago)
MarketScientist happy republic day sir.
MANISH KUMAR (6 months ago)
MarketScientist jokes apart u explain very well sir.
LearnApp (6 months ago)
MANISH KUMAR hahaha, made me laugh. I went to the gym and look alot better now. Happy republic day man!
Were Wolf (6 months ago)
Good video. Very insightful! Can your method be applied to U.S. market's?
sagar raut (6 months ago)
Do you have any mathematical model or formula to predict trends?
Michel Johnson (7 months ago)
Great job, good info! Well, I have also found a very impressive quantitative research and statistical analysis related video for companies "Know About Stocks 101, Exchange Traded Funds and Index Funds" by #HumanStartupson YouTube. I suggest you to checkout the same as this channel has some more impressive Vlogs to make better investment decision and tips & related videos regarding better, clear & concise investment decisions, investment planning strategy. Enjoy the videos, Cheers!!!
Knowladge360 (7 months ago)
kindly make videos in hindi
Afro-haitian18x (7 months ago)
Thank God, he didn't say that his name was Richard, Tyler, Peter, Brian or O'Connor Lmao
LearnApp (7 months ago)
Now why would I do that? I like my name :)
Sam AFR (7 months ago)
Crystal clear tutorial.
LearnApp (7 months ago)
Hey thanks Sam
Brandon Geekabit (8 months ago)
does this apply to bitcoin
Anthony Cunningham (3 months ago)
Music Learner you mean $1 buy in is too high? Please respond
Anthony Cunningham (3 months ago)
Well can I buy into stock markets as easily as it is buying into bitcoin?
Sabrina Millette (4 months ago)
Ofcourse. It will burst though..
Music Learner (4 months ago)
Eddieee82 It only takes your common sense to realize that the spread between its ask price and bid price is high. You lose your money the moment you start to trade and need to wait for some time to even make a breakeven.
Eddieee82 (7 months ago)
MarketScientist why?
siva prasad (8 months ago)
also,how to know the volume of a company and also knowing the volume how would i guess the market trend of that company sir.
LearnApp (7 months ago)
Not as simple as that. You need to study, learn and hope to figure that out in a few years. This is a skill like any other, takes time to acquire.
siva prasad (8 months ago)
how to choose best low investment shares of below 50-100 rupees sir,cause they chart are almost too up and down peaks.
siva prasad (7 months ago)
how and where i have to study for exact company detailed before investing a company stock of 30-50 rupees
LearnApp (7 months ago)
Not as simple as that. Study, then trade.
Tay williams (8 months ago)
Is there any free websites out there that let you use trends? I'm not trying to pay for a site.
Nikky Sharma (8 months ago)
hindi bolo yr
Venom Productions (8 months ago)
is iq option 100% legit in india?
Venom Productions (8 months ago)
tysm i will stay away from it
LearnApp (8 months ago)
Good, you see the basis of iq options was never understood by me. It does not seem like a legitimate way of trading the markets. Stay away!
Venom Productions (8 months ago)
okay sir i will stay away from that since i'm a beginner and you have a lot of experience of trading....
Venom Productions (8 months ago)
but why???is there any good brokerout there?
ramiz tambitgar (8 months ago)
Only one queation... How to identify swing high or swing low
LearnApp (8 months ago)
We did a video on how SH SL works, watch it!
mychael jones (8 months ago)
thank you
LearnApp (8 months ago)
Thank you for watching!
Siyazukisa Nkala (8 months ago)
Very good
LearnApp (8 months ago)
Siyazukisa Forex Institution thanks man!
Satish Patel (9 months ago)
Hindi me v video banaeye sir..... thanks
LearnApp (9 months ago)
HIndi mein bhi bohot jald aane waali hain videos :)
What does the meaning of red green color of columns, and why they sometimes short column, and some how its little big column. Plz. Explain, if you have a video on this particular you must refer me.
LearnApp (8 months ago)
So the red bar means the CLOSE of the day was lower than the OPEN of the day. That means it was a day when markets fell. Search for 'basics' of candlesticks and you will find it.
AMOL PAWAR (10 months ago)
sir your videos helped me alot... specially this video..I am beginner but by watching your videos I have made 1000 rs profit in 2 days..by only investing 1000 rs in intraday trading...tysm sir ....keep posting such good videos...plz make videos on technical indicators...thank you
Rajnio Gladin (2 months ago)
AMOL PAWAR : how how got 100% profit by today's can u tell me?
LearnApp (8 months ago)
That is really amazing! Keep it up :)
Paras Vora (11 months ago)
Beautiful explanation baby boy
LearnApp (11 months ago)
Paras Vora thank you Macho man
Paras Vora (11 months ago)
Beautiful ears baby boy
LearnApp (8 months ago)
Thank you He-man
Jochem Westerhof (1 year ago)
Try to fix the acoustics of the room that you are recording in... so it will be less echoey. It will be more comfortabel to listen to your content. P.s Keep up the good work
LearnApp (8 months ago)
You are totally right! my new videos have better acoustics. Thank you for taking out the time and saying this, I hope the new videos we release are better :)
Rajaram Pawar (1 year ago)
But how can we identify the buy call?
LearnApp (8 months ago)
This is an explanation of just how to identify trends. Further courses will have entry exit profit taking techniques.
abdel belhadj (1 year ago)
no when can predict market direction only those who control every thing ;technical analysis is a wast of time
LearnApp (8 months ago)
Nobody controls everything man, it is a myth. I know it can be difficult to believe that's why we started streaming our trades live everyday on this channel called MS live. Come and see for yourself.
Paul R (1 year ago)
Am I the only one who thinks he looks like a panda?
akshay verma (8 months ago)
hahaha can't stop laughing. :D
LearnApp (8 months ago)
hahaha, dont know what to say to that.
David Miller (1 year ago)
Soooo, one bar is nothing, but two bars create something impotent (2:16)? If you ask me, this is not true when the bars are going up. When they go down, than maybe yes.
Guywithaguitar (1 year ago)
Curious, how much money have you made trading? Only then is your advice valuable ...
ruubz001 (8 months ago)
you don't need to have been trading for a statistical method to be proven
LouisVlogs (8 months ago)
doesnt really in this situation, if youre making trading tutorials but you yourself have never been a successful trader at any level then your advice is essentially useless
Matt DeLong (8 months ago)
the money you make is determined by many factors, including your account size....
Srawann Komarr (1 year ago)
hello sir. we need online coaching. can you provide tuitions in online? e mail: [email protected]
Akash Watwani (1 year ago)
nice video, what charting software do you recommend?
iCookie1 (1 year ago)
Click here to make 1 trillion dollars from home trading forex for only 1 millisecond per day!
sujoy saha (1 year ago)
hello ser jee muje English nehi ati hay plz Hind me samjona plzzz
G Chabra (9 months ago)
Yeh tere musibet hai..English mein sikha doon.
Best Yesent (1 year ago)
Can i start right now? *GO HERE* https://twitter.com/7Xwinq/status/814557894679076866
Mohit Banait (1 year ago)
when to buy and when to sell share by understanding graph?
Abhijit Acharya (1 year ago)
great job sir..
Jasvir Singh (1 year ago)
Mr Singh is good speaking technical analyst. I do not have those qualities. I have been trading since, 2004. I had learn that, without practice or experience nothing works. If you like to make money, trade short time, spend a lots of time on candle wick. I am not scam or promote my business here. I wish healthy and wealthy life for all. Thanks
chris ramm (2 years ago)
peaks and crests, should it not be peaks and troughs. great video, just a nit pick
LearnApp (2 years ago)
You are completely right! Sorry about that. Thank you for your appreciation of the work :)
safdar wajid (2 years ago)
sach a great vidio but the imprtant is this what is the stratgy which we use to proftable trade
Luke Williams (2 years ago)
Crest means the top of the wave, I think you mean troughs
nanoday1 (2 years ago)
can we talk about how big this guy's ears are? Adorable, not even kidding.
Trusted Binary (3 months ago)
My fixt income $760 per day expert0ption.com/money
Houssem Ben Malek (5 months ago)
Winner of a video, I've been looking for "online stock trader trading trend" for a while now, and I think this has helped. You ever tried - Sanames Stockify Scripophily - (should be on google have a look ) ? Ive heard some pretty good things about it and my brother in law got amazing results with it.
Stoian Alin (5 months ago)
This is just superb, I have been researching "google stock trading" for a while now, and I think this has helped. Have you ever come across - Sanames Stockify Scripophily - (search on google ) ? Ive heard some incredible things about it and my partner got excellent results with it.
mani N (5 months ago)
This is glorious, I been tryin to find out about "predicting stock prices using technical analysis and machine learning" for a while now, and I think this has helped. Have you heard people talk about - Sanames Stockify Scripophily - (do a google search ) ? Ive heard some great things about it and my friend got cool success with it.
Anil Sangroya (2 years ago)
awesome
Karan k (2 years ago)
if u teach in live market charts it is gud
Waseem Amin (2 years ago)
i think its harder. but can be done and people have been appplying it for much time now. is something woorth it i think
Manish Khatri (2 years ago)
Very Good explanation. but I am getting doubt regarding to second and fourth swing high from Left. 1. Whats the reason behind making second high? 2 In the fourth high,immediate bar after this high is not making a decline. So How its fourth high.
Faye Courtier (2 years ago)
nice... good teaching sir...
ashesh bajpai (2 years ago)
Superb explanation
LearnApp (2 years ago)
+ashesh bajpai Thank you!
rahul kumar (2 years ago)
sir ,plz hindi maim bhi apna chaanel baniye..............thoda typical hota hai english main samjhna
Dinesh Arora (2 years ago)
please suggest good book for technical chart analysis
Dinesh Arora (2 years ago)
could u explain what it mean stock included in msci index ... will including or excluding affect share price ? MSCI adds four cos to India index; removes Oil India, DLF Read more at: http://www.moneycontrol.com/news/market-news/msci-adds-four-cos-to-india-index-removes-oil-india-dlf_4136161.html?utm_source=ref_article also please suggest good book for technical chart analysis thanks again for all your help n nice video tutorial
Harit Pathak (2 years ago)
This is the technical analysis of stock as I understand.. But How can we do fundamental analysis of the stock which are the resorce for fundamental analysis.... how we can find...?
LearnApp (2 years ago)
+Harit Pathak Start with technicals then move onto fundamentals. There are good books by Peter Lynch that you can use to start fundamental analysis.
linkbudy.com (2 years ago)
good explanation
LearnApp (2 years ago)
+linkbudy.com Thank you
Manish Singh (3 years ago)
the way of explaining is superb .... i like the same style
Stock Marketer (3 years ago)
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Anant Valanj (3 years ago)
respected sir, nice &  useful presentation  thanks valanj
MyShareBazaar.com (3 years ago)
Nice Video !!! Very easy to understand.
Shreshtee Yadav (3 years ago)
Hey your video gives a very good basic explanation of market trends. I read somewhere that INCREASING price and DECREASING volumes represents bearish movement in the market, so can u please provide an explanation to my question or suggest me some reading article on this topic. I understand other relations like increasing price and increasing volume signify bullish move, but not the particular Increasing price and decreasing volumes relationship.  
LearnApp (2 years ago)
+Shreshtee Yadav That is true, but as far as I have seen it is best to stick to just price. Volume and price can have divergence for months on end, if something cannot be exact it's not worth using.
urbaniten (3 years ago)
Very clear explanation. One question: what kind of time frame is reasonable for the high and low swings to determine the trend?
jaglinuxmint (3 years ago)
Great video, and you explained really well. 
sudhiir reddy (4 years ago)
Are NSE and BSE public limited companies, If so where can I buy the stocks of NSE or BSE ifself...???
LearnApp (3 years ago)
+sudhiir reddy Hi you cannot buy the NSE and BSE as they are not listed. They ARE the exchange :)
smita kane (4 years ago)
video is v gud  n i will like to take lessons on line ,n will u pls let me knw then i can join smita
LearnApp (4 years ago)
Hey Smita, just goto marketscientist.in and fill out the form in the paid courses section.  Glad you like the video, we are launching a new portal called TradeAcademy which will have much more learning resources. All the best in your trading journey.
subbulaxmi r (4 years ago)
Beautiful Video.. I would really love to learn step by step . Would you suggest a good material where i could first understand terminology of various words like price action etc etc and then learn to trade 
LearnApp (4 years ago)
Hi Laxmi, yes we do conduct weekly online classes at marketscientist.in, we have one coming up on Wednesday and another on Friday/Sunday - you can send an email to Anita [email protected] and she will give you a call :)
laxmi r (4 years ago)
Thankyou Prateek ... By any chance Do you provide any online trading courses for the beginners 
LearnApp (4 years ago)
Hi Subbulaxi! Glad you enjoyed the video, you can search the internet for price action methodlogies. Make sure to backtest, have a mm plan and not more than 3-4 rules for entry exit. We also teach a full price action methodology on our website, do take the time and visit it :) - Prateek
Naeem Awan (4 years ago)
  Excellent video
LearnApp (4 years ago)
Thank you, glad you enjoyed it
LearnApp (4 years ago)
Thank you Mayur :)
Mayur Vyas (4 years ago)
Nice...
LearnApp (4 years ago)
Thank you Sourish, I'm glad it helped
Sourish Chakraborty (4 years ago)
Excellent video Prateek.. Keep up the good work.. Very well explained.

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