Trade Stock Indices

Technique for Analyzing Retracements in Both Upward and Downward Market Trends

Trading Retracements in Indices: Uptrends and Downtrends

The price of a instrument doesn't move upward or downwards in a straight line. Instead the price moves up or down in a zigzag pattern setup called a trend - in this pattern the price moves up-ward in a trend then it retraces before it resumes the trend direction - in a downwards trend the price moves downward in trend direction & then retraces before resuming the trend direction.

What is a retracement? A stock price retracement happens when the price goes back a bit before the market keeps moving in its initial direction.

Indices Example illustration of Zigzag Price Movement: The trading example illustration explained & illustrated and shown below shows price moving up in a zig-zag pattern setup showing price trend & stock price pull back.

The trading example illustration explained and shown below shows movement in an upward market & stock price pullback.

How Can I Analyze a Retracement on Up-ward Trend & Downwards Trend?

What's Retracement? - What's a Retracement? - Price Retracement Explained with Trading Example

What is Retracement Trading in Indices Trade?

1-2: Price Moves and Heads Up - Trend Direction

2-3: Price Retracement

3-4: Price Moves and Heads Up - Trend Direction

4-5: Price Retracement

5-6: Price Moves and Heads Up - Trend Direction

The pull back of price is shown on the above example - this represents a price retracement in an upward stock trend.

How Can You Analyze Retracement on Up-ward Trend & Downwards Trend

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