📉Market Analysis

This guide comprehensively covers market analysis in a precise and comprehensive manner, catering to traders of all levels of expertise.

Warning: To comprehend the upcoming guide effectively, we highly recommend that you study the Trading Fundamentals group section. This will provide you with a solid foundation to understand the following guides properly.

As you may have noticed, the only timeframes to utilize are the 6-hour, 1-hour, 3-minute, and 1-minute. In this guide, we will break this down and understand why these are utilized.

Market analysis is always conducted by first examining the larger timeframe and then moving to the smaller timeframe. Thus, in a practical manner, it should be analyzed in the following order: 6-hour, 1-hour, 3-minute, 1-minute.

For a comprehensive understanding, we consistently refer to the 6-hour timeframe as the ocean, the 1-hour timeframe as the waves, and the 3-minute timeframe as the smaller waves occurring within the 1-hour timeframe. When utilizing Heikin-ashi candles, the ocean and wave concept becomes much more evident, as these candles reduce unnecessary market noise.

When the market is perceived in this simple manner, our task is to identify a Bullish or Bearish market state on the 6-hour timeframe. Once this is achieved, we have established the market direction. Subsequently, we move to the 1-hour timeframe and search for the same market state. When these two align, it essentially signifies that the waves align with the ocean, enabling us to capitalize on the temporary direction that the market is presenting to us.

The following documents will explain in detail how to analyze each of these timeframes to gain a comprehensive understanding of market conditions and how we should act upon them.