The price of an asset, such as currency or stock, will change based on supply or demand. If demand increases or supply decreases, then the price will rise. Conversely, decreased demand or increased supply will lead to a drop in price.

Investors expect that the value of the asset will go up, so they want to buy it cheaper and sell it later at a higher price.

The value of all assets depends on the dynamics of supply and demand. That means that you can make money when the price of any asset goes up or down.

Make down trades when the asset price goes down. Make up trades when the asset price goes up.

An uptrend shows the upward trend in prices. If the chart goes up, that means the asset price goes up.

Buy an asset when the market goes up to sell it at a higher price later.

A downtrend shows a downward trend in prices. If the chart goes down, that means the asset price goes down.

Sell an asset when the market goes down to buy it at a lower price later.

There is a trading technique momentum - style trading, when traders focus on stocks, the price of which are dynamically moving in one direction.

The essence of the style is to assess the behavior of shares relative to the behavior of the market. To do this, traders evaluate whether the shares are moving with or against the market, whether they have enough volume, and how they behave in comparison with the initial forecast.

The strategy is based on short-term changes in share prices, not on their fundamental value. When choosing a moment to buy or sell, pay attention to the strength of trends that have formed on the asset.

If the value of the asset is actively growing, then an uptrend has formed and it is possible to place up trades.

On a downtrend, when the price is dynamically going down — place down trades.

The analysis of the behavior of a chart allows one to detect patterns in price movements of an asset: whether it grows or falls, continues to move in the same direction or turns around.

The easiest type of chart to understand is the Line Chart. Every change in the price of an asset on it looks like a point. The points are connected and visually represent a permanently broken line.

It is very convenient to find trends and build trading strategies with the help of Line Charts.

You can track more complex signals — trend reversal times and points for entering a trade on a Japanese Candlesticks chart.

To determine the best time to make a trade on a candlestick chart, focus on one or more candles. Each candle has an open and close price as well as a minimum and maximum price. The combination of these four factors determines when a trade is opened or closed.

Sometimes one or more candlesticks form combinations which are called candlestick patterns. Such patterns help to determine when to enter a trade and how the price will behave in the future.

Bars – another type of a chart, quotes on it are displayed in the form of vertical codes. The lower boundary of the code corresponds to the minimum price, and the upper boundary — to the maximum. Horizontal codes to the left of the bar - the opening price, horizontal codes to the right of the bar — the closing price. Sometimes the opening price of a bar cannot be found.

Bar Charts are similar to Candlestick Charts and actually contain the same information as candlesticks charts. Green bars indicate that the price of the asset has been increasing. Red bars mean that it has been falling.

Heikin-Ashi is a specially built candlestick chart. In fact, this technique averages price data to create Japanese candlesticks. To build a candle, we use information about the opening/closing prices of the previous candle and the information about the price change at that moment. Therefore, formally, Heikin-Ashi is an indicator, not a chart.

Heikin-Ashi smoothes price fluctuations and simplifies the analysis of trends, which means that using it makes it easier to find the opening and closing times of trades.

Flat, or a sideways trend in the market is a situation where the price for some period of time does not grow and does not fall.

Price movement in a flat, as a rule, is short. Therefore, a flat is a signal to the trader that now is not the best time to make trades.

However, only 30% of the time the market is trendy and has a good strategy, you can make a profit during the other 70% of the time.

The best strategy of a flat is trading using support and resistance levels. If the price is approaching the support level top down and touches it, open an up trade. If the price approaches the support level bottom up and touches it, open a down trade.

A support level is the point at which the value of the asset reverses and starts to grow. It looks like a line that creates an obstacle for a future price decrease.

It is usually drawn between the lowest price points, i.e., lowest price points on the chart.

A resistance level is the point at which the value of the asset reverses and starts to fall. It looks like a line that creates an obstacle for a future price increase.

It is usually drawn between the highest price points, i.e., highest price points on the chart.

The portion of the chart between levels of support and resistance is called a price channel. If the line moves horizontally along the channel, then this market condition is called a flat or a sideways trend.

If the price has bounced off the support level, make up trades. If the price has bounced off the resistance level, make down trades.

Sometimes the line breaks through the support level. If the price line breaks through the support level and continues going down, a real downtrend forms in the market.

When the line crosses the support level going down, make down trades.

The chart periodically goes beyond the resistance level. If the price breaks through the level and continues to move up, an uptrend is forming on the market.

When the price chart crosses the level of resistance bottom up, open up trades.

If the price channel between the support and resistance levels is visually directed downwards, a real downtrend has formed in the market.

It’s best to trade in the direction of the slope. Make a Down trade when the price line runs into the resistance level line.

If the price channel between the support and resistance levels is visually directed upwards, a real uptrend has formed in the market.

It’s best to trade in the direction of the slope. Make an Up trade when the price line runs into the support level line going down.

The atmosphere of indecision in the market, for instance, when the supply equals the demand, makes it hard to continue making the right decisions about the price trend. Therefore, trades can be unprofitable.

A few simple risk management rules exist to help minimize losses.

Risk management is a set of rules that determine trade amounts and limit the trader’s total trade volume. Risk management is needed to save the original deposit regardless of the trade’s outcome.

In the event of an unsuccessful trade, you increase the amount of the following trade to cover the losses. As soon as a trade closes successfully, you go back to the original trade amount and start over.

For example, you open a trade for $1 and your prediction is incorrect. Next you open a trade for $2 and it fails again. Then you increase the trade amount to $5 and your prediction is successful. This way, you not only recover the losses on previous transactions but earn money. Usually, Martingale consists of 4 - 7 steps.

In the event of a successful trade, you increase the amount of the following trade. As soon as a losing trade closes, you go back to the original trade amount and start over.

The system contains 2-3 steps. This method enables you to invest your profit in the trades that follow and build on your deposit faster.