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As i see, while trading you can look at price charts and trading volume to make some guess of price trend. This may or may not work. But every time we look at the trends, they are from our local stock exchange. Like for me some stocks have very low trading volume listed on Hamburg Exchange. But at the same time this stock is being actively traded in US exchanges which can be affecting the price in real time, right?

So this means unless you are monitoring the most high volume exchange around the world, you are simply fooling yourself with the parameters you are seeing.

How can we cope with this situation?

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    You can cope with this situation by not trying to time the market and understanding technical analysis is a fools game.
    – Pete B.
    May 25, 2021 at 12:07
  • Could you give an example of the stocks you mentioned?
    – Flux
    May 25, 2021 at 12:11
  • Looking at volume only makes sense on the main exchange, not on alternative exchanges that happen to trade the same stock. However, even that can become difficult nowadays with some many alternative exchanges pushed by brokers that are getting paid for order flow.
    – Manziel
    May 25, 2021 at 12:49
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    "all famous stocks are manipulated by big investors" - This is a pretty bold claim to make.
    – Grade 'Eh' Bacon
    May 25, 2021 at 14:24
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    @RizwanUlHaq Your analysis misses one key factor - the larger the stock, the greater amount of money required to move it. I say this because overestimation of this type of thing can really poison your mind into thinking you have an 'in' into anticipating what these 'whales' will do. Can be a bit of a gambler's mindset to be overconfident in your assessment of where the random walk will go next.
    – Grade 'Eh' Bacon
    May 25, 2021 at 14:57

1 Answer 1

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Determining the trend of a stock is quite easy. You can:

  1. Scan a chart visually for higher highs (or lower lows)
  2. Draw trend lines
  3. Utilize Point & Figure charts
  4. Use trend following indicators such as moving averages, AMCD, Bollinger Bands, On Balance Volume, etc.

There's a problem with this. It's a look back at where price has been and predicts nothing going forward. Taking a trade in such instances is merely based on the hope that the trend continues.

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