Higher Lows: Concept
🎥 What you will learn
In developing a robust trading framework, it’s essential to integrate multiple indicators to confirm market trends. This section provides you with an understanding of the key indicators which will be used to make trading framework.
Key Points
- Exponential Moving Average (EMA): Weighted average of recent prices, to identify price momentum in right direction based on recent trades.
- Volume Indicators: Reflect the number of shares traded, indicating market liquidity and the strength of price movements.
- Higher Lows Concept: Identifies increasing support levels in an upward trend, signaling sustained buying interest.
🎥 Video Guide
✍️ Practice Questions
- What are higher lows, and why are they significant in identifying bullish trends?
- Why is it important to combine multiple indicators rather than relying on a single one?
- How can the combination of EMA crossovers, volume trends, and higher lows be utilized to create a trading strategy?
Think about these questions to reinforce your understanding of stock market basics.
Higher Lows: Application
🎥 What you will apply
We now go to the google sheet to see how the higher lows concept can be applied to on our list of stocks This section leverages price action on a daily basis, volume, moving averages to make recommendations.
🎥 Video Guide
✍️ Practice Task
Make a copy of the Google sheets and tweak the stock list and the filter conditions to develop your own strategy and run it. Keep testing and tweaking your strategy.
Higher Lows Weekly: Application
🎥 What you will apply
We now go to the google sheet to see how the higher lows concept can be applied to on our list of stocks This section leverages price action on a weekly basis, volume, moving averages to make recommendations.
🎥 Video Guide
✍️ Practice Task
Make a copy of the Google sheets and tweak the stock list and the filter conditions to develop your own strategy and run it. Keep testing and tweaking your strategy.