Herd behavio methed

1/ When a person enters into his deal and makes a profit, then the price returns to his entry point, he has the hope that he will make more profit and not close his deal ...

  

2/ When a person enters his deal and loses, then the price returns to his entry point, he is afraid of losing again and closes his deal.

3/ When a person enters his bargain and reverses the trend, he enters into another bargain opposing the first deal to cover his losing deal and for fear of missing the opportunity ...

4/ When a person enters into his deal and has little profit because of the lack of price movement, he wants to close his deal ....

5/  A person refuses to buy something at a high price that could have been bought at a lower price in the past few hours ...

6/  Run after breaching support and resistance ....

7/ They enter after the end of the trend, for fear of missing the opportunity or from the panic caused by the price movement significantly.

Accumulation and Distribution

Accumulation 

When the stock is down, the professionals gather this stock .

So they sell and buy but buy a larger quantity of sales .

Why do they do that

When the stock falls they buy cheaply .

They always want to buy at cheap prices so they sell on top so that the price drops and they buy at cheaper prices .

What happens when you buy most stocks?

Once most stocks are bought from the market, the market starts to rise

But find selling resistance stands in the face of rising prices

So professionals have to buy that sale at cheap prices, which leads to a lower price

Thus, the resistance was eliminated preventing the bullish trend

Why should the stock rise ?

Because markets like to follow the path that has less resistors 

You should expect the number of areas that are considered price resistance

Must identify the most resistant areas

During the early stages ?

In the early stages of the accumulation process if the purchase is too much 

Resulting in a high price 

Your purchase will stop

You will find resistance from professionals to buy more on the next downtrend .

Distribution

Distribution occurs in a rising market 

They sell and buy but at the end sell more 

than buy

                      During the early stages?

If the sale in large quantities, which led to

 a strong fall in price

There will be support from the professionals to sell more on the next uptrend

End of the uptrend?

Once you sell most stocks

The market starts to fall

But the buying zones are supporting areas

that stand in the face of falling prices

Professionals sell on the next uptrend 

and the support area has been removed

 from the market

The basics of volume and depth market

volume up
=
High volume on the uptrend .

=

 . Low volume on the downtrend

volume down

 =
 . High volume on the downtrend

=

 . Low volume on the uptrend

Buying signal at the depth of the market:

1/   Buy high on the uptrend .

2/ sell low on the downtrend .

selling signal at the depth of the market:

1/  sell high on the downtrend . 

2/  Buy low on the uptrend .

Support and resistance

Resistance 

Resistance:- It is a region where there are many sales order .

So we conclude that resistance prevents high prices .

Support

Support:-  It is region where there are many  buys orders .

So we conclude that support prevents low prices.