Decoding

Market Moves
Chapter 1

By : Tutor Age
How does the functioning of the market
truly operate?

"All financial markets operate

based on the fundamental
principle of Supply and Demand."
Demand Law: When the price of an item increases, the demand
decreases (buyers are less inclined to purchase at a higher cost), and
when the price decreases, the demand rises (buyers are more eager
to buy at a lower price).

Supply Law: As the price of an item rises, the supply increases

(sellers are motivated to sell at a higher price), and as the price falls,
the supply decreases (sellers are less willing to provide at a lower
price).

Consequently, prices rise to attract sellers and then fall to attract

buyers.
 How to predict the market
movements?

"It is essential to acquire

knowledge in Technical Analysis
to predict the market
movements"
What is Technical Analysis :

Technical analysis involves

examining historical market
price movements to predict
potential future market
behavior.
Basic idea of Technical Analysis:

History repeats itself.

Prices move in trends.

Market behavior takes into

account everything, such as
greed, hopes, fears, as well as
any fundamentals or major
events.
Where all can we apply technical
analysis?

Technical analysis is applicable to stocks,

indices, futures, commodities, or any tradable
instrument whose price is influenced by the
forces of supply and demand.
Where can't we apply technical
analysis?

Technical analysis might not be as effective

with micro-cap companies and penny stocks,
given that they are often controlled and
operated by a small group of individuals.
 End of Chapter 1!
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