4 steps to understand market sentiment(1)

The US August CPI represents 8.3% growth year on year, which is higher than the expected 8.1%. As the number exceeds market expectations, fluctuations in stock market ensue. In such cases, the timing seems important.

In general, fundamental analysis is used for picking stocks, whereas technical analysis is used for timing trades.

So today we’re going to dive into technical analysis, to better trace the market price movement.

Candlesticks are primary tools used in technical analysis, and the components of a candlestick are as follows:

If the closing price is higher than the open, the candlestick will be colored green to represent a bullish candlestick.

Conversely, if the closing price is lower than the open, it is usually colored red to represent a bearish candlestick.

If the open and close are virtually equal, the candlestick is usually called a "Doji", which could be interpreted as a neutral candlestick.

While a single candlestick reveals limited information, several candlesticks could give more insights into the market action. If you want to know more about them, follow Cici and always keep an eye on Cici's sharing!

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