The indicators and measurements that technical analysts use to determine the trend are not crystal balls that perfectly predict the future. Under certain market conditions, these tools may not work. Also, a trend may suddenly change direction without warning. Thus, the technical investor must be aware of risks and protect against such occurrences causing losses.

It's crucial to remember that past performance does not guarantee future results, and real trading involves costs that need to be factored in for accurate risk management and profit analysis.

By observing volume patterns alongside price movements, traders and investors can gain valuable insights into market sentiment and the strength of prevailing trends. Volume confirmation serves as a crucial tool for making informed decisions and identifying potential trend reversals or continuations.

Understanding market phases is crucial for navigating the complexities of financial markets. By discerning accumulation, trending, and distribution phases, practitioners can make informed decisions, leveraging market dynamics to their advantage. Through a blend of technical analysis and market sentiment evaluation, participants can adapt to evolving market conditions and capitalize on emerging opportunities.

Contracts are crucial for trade activity, forming the backbone of markets. Understanding them is essential for prospective traders to ensure smooth and fair transactions.

Both strategies have their own benefits which depend on personal risk and investment horizon. In this article, we will explore them further.

Understanding the Greeks empowers you to make smarter moves and navigate the options market with confidence.