What is Market Condition?
Market
condition is the general direction of the stock market that drives the flow of
all the stocks. A rising market often takes up all the stocks with it and vice
versa. Therefore, understanding the market condition and its impact on your
portfolio is necessary to understand what you should do in the market.
Use
5Paisa’s Swing Trader to effectively analyse the market by classifying it into
four different conditions.
- Confirmed Uptrend: This is the best time to buy stocks
- Uptrend Under
Pressure: It is
advisable to proceed with caution in this scenario.
- Market in
Correction: The smart move is to avoid fresh buys during this period.
- Rally Attempt: You are required to wait for
the market to follow through or a strong price action to occur, before
adding any fresh positions.
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