Bulls Resurface On NGX Amid Spiraling Inflation, Mixed Corporate Earnings

Post Views: 123

The Nigerian Exchange (NGX) witnessed a rebound after a strong interplay between the buyers and sellers last week, halting the previous week’s loss, as the benchmark NGX All-Share index closed higher on a buying interest in highly priced stocks and blue-chip companies.

Consumer Price Index for June sustained its northward movement, hitting another all-time high of 34.19%.

Below, we bring you write ups on how to trade price and index actions under the prevailing circumstance. However, to trade with price action, you must observe and interpret the movement of market prices accurately to make trading decisions rather than relying on technical indicators. This approach focuses on real-time price data and trends to predict future market behaviour.

You must also recognize trends, patterns, and candlestick formations to help make your trading decisions, while using key candlestick formations for market movements, and determining entry and exit points while practicing patience, discipline, and adaptability. By mastering these techniques, you can develop a strategic edge in trading that will enhance your success and risk management.

To understand the essence of pure price action trading, focus only on historical price movements for clues into current market conditions. In this form of trading, you analyse price charts without the assistance of indicators or oscillators (or very minimal).

By understanding the raw data of price movements, you can gain a better understanding of market behaviour and what potential moves are to come. Price action tools such as candlestick patterns and chart formations become your “tools of the trade” as a trader. Learning to interpret these patterns is the goal of developing a successful price action strategy.

The goal of pure price action trading is to predict future price movements based on past price data. By being able to read the charts and understand the meaning of price action, you can make better decisions in the market that are based on what is happening in real-time.

NGXASI Weekly Chart

NGX Banking Index Weekly Chart