Market Analysis

Before you enter a trade, you need a reason. That reason comes from analysis.

This section covers every analysis type — so you can find confluences, make decisions, and trade with confidence.

Analysis Types

technical-analysis

Study of price action using charts and indicators.

Core principle: Price discounts everything.

technical-analysis.md >>>

fundamental-analysis

Study of economic factors that affect value.

Core principle: Price follows fundamentals.

fundamental-analysis.md >>>

sentiment-analysis

Study of market feeling and positioning.

Core principle: Extremes create reversals.

sentiment-analysis.md >>>

price-action

Reading raw price movement without indicators.

Core principle: Price is the only truth.

price-action.md >>>

multi-timeframe

Analyzing multiple timeframes for confluence.

Core principle: Direction from higher, entry from lower.

multi-timeframe.md >>>

How Analysis Types Work Together

Analysis isn’t either/or. It’s about confluence — multiple factors pointing in the same direction.

Confluence Model

Technical ──────────┐
                  ├─→ High probability setup
Fundamental ─────┤
                  │
Sentiment ─────────┘

Example: Bullish Confluence

Three factors align = High confidence.

When Each Analysis Leads

Real Examples

Example 1: Forex Trade

Setup: EUR/USD

Technical:

• Daily in uptrend (50 SMA > 200 SMA)
• Price at daily support (1.0850)
• RSI bouncing from 45
• Bullish divergence on H1

Fundamental:

• ECB hawkish, Fed dovish
• Positive Euro data
• Rate differential favoring EUR

Sentiment:

• Retail heavily short
• positioning showing accumulation

Decision: BUY at support

Example 2: Crypto Trade

Setup: Bitcoin

Technical:

• Weekly at key support ($65K)
• Bollinger lower band
• Volume spike on breakdown
• Divergence on RSI

Fundamental:

• ETF approval positive
• Institutional adoption increasing

Sentiment:

• Extreme fear (fear/greed index < 20)
• Social media panic

Decision: BUY at support

Example 3: Stock Trade

Setup: AAPL

Technical:

• Daily in uptrend
• Earnings gap up
• Pullback to 20 EMA
• Volume decreasing on pullback

Fundamental:

• Earnings beat
• New product announced

Sentiment:

• Positive momentum

Decision: BUY on support bounce

Decision Framework

Before Every Trade: Ask These Questions

Question 1: What’s the Trend?

Check higher timeframe:

• Uptrend → Look for longs
• Downtrend → Look for shorts
• Range → Look for range trades

Question 2: Where Are Key Levels?

Find:

• Support (buy zones)
• Resistance (sell zones)
• Key pivots

Question 3: What’s the Catalyst?

Know what’s moving price:

• News event
• Earnings
• Data release
• Market sentiment

Question 4: What’s the Risk?

Define:

• Max risk per trade
• Stop placement
• Position size

Question 5: Is There Confluence?

Multiple factors align:

• Technical + Fundamental
• OR Technical + Sentiment
• OR All three

Analysis Checklist

☐ Trend identified on higher timeframe
☐ Key levels marked
☐催化剂 identified
☐ Confluence found (at least 2)
☐ Risk defined
☐ Entry/exit planned

Analysis by Market

Forex

Crypto

Stocks

Indices

Internal Links

Navigate analysis:

• technical-analysis — Start here
• fundamental-analysis — Drivers
• sentiment-analysis — Mood
• price-action — Pure price
• multi-timeframe — Confluence

Connect to:

• strategies — Apply analysis
• tools — Tools for analysis
• strategies — Build your system

Your Next Step

Start with analysis fundamentals:

technical-analysis.md >>> (most traders start here)

fundamental-analysis.md >>> (for longer timeframes)

sentiment-analysis.md >>> (for reversals)

Analyze first. Trade second.