Interpretation of signals or results - Time to Buy or Sell
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Last updated
Last updated
The "Time to Buy or Sell" indicator from Smart Trading Indicators is presented visually and stands out for its simplicity and effectiveness in representing buying and selling pressure in the market.
Below, you will find a more detailed analysis of how this indicator is displayed in action and how to interpret it:
[Image of an Upward Trend Chart]
Description: In this chart, you can see a predominant series of green columns indicating consistent buying pressure. As the trend continues, the green columns become larger and more frequent, suggesting an increase in buying pressure.
The beginning of a bullish trend often comes with an increase in buying volume.
During minor corrections or pullbacks, you may see some red columns, but they are significantly smaller than the green ones, indicating that the bullish trend is still strong.
[Image of a Downward Trend Chart]
Description: Here, the chart shows a predominant series of red columns representing strong selling pressure. As the price falls, the red columns become more dominant.
At the start of a bearish trend, you are likely to see an increase in red columns, indicating increased selling activity.
If green columns appear during this trend but do not change the overall direction of the red columns, it indicates that the bearish trend remains strong.
[Image of a Sideways or Range-Bound Chart]
Description: In a sideways market, you will observe an alternation between green and red columns without a clear direction.
In a range-bound market, the indicator may show more frequent alternation between buying and selling.
Look for a significant increase in green or red columns, accompanied by other technical indicators, to identify a possible breakout from the range.
[Image of a Chart showing a trend change]
Description: Here, after a dominant series of green columns, you begin to see more prominent red columns, indicating a possible change in the market direction.
Sudden color changes, especially when supported by an increase in volume, can be an indication of a trend change.
It is essential to seek confirmation from other technical indicators before taking action based on these changes.
