How to Analyse Global Market Data for Market Trend ?-A Number Game

 

The main focus and objective of the blog is to keep investors, traders, and new entrants updated about Global Stock Market Data for Prediction of Movements, therefore, we present regularly updated data of major global stock markets in form of Summary and Detailed Historical Data.

The Global Index Data includes Key Performance Indicators and parameters that help determine Support and Resistance levels for market prediction. Wherever you are,  the data can easily be accessed to gain insights into potential market movements. Additionally, we provide detailed historical trading data for the past 60 days of major global financial markets, including parameters such as Gap-up & Gap-down Opening, Intraday Range, and DMAs (from 05DMA – 200DMA Levels). This information is presented separately for more accurate and insightful predictions of stock market trends based on past movements.

DMAs when considered alongside other parameters like previous highs, lows, and “Open Interest” (for determining support and resistance levels), can reveal more accurate predictions. DMAs and Previous High & Low are one of the most important parameters for market predictions, when correlated with a country’s financial policy, key economic events, and global geopolitical developments, they offer valuable insights into market behaviour. This analysis can guide future market predictions and help investors make informed decisions for successful trades.

HOW MARKET CAN BE PREDICTED WITH AVAILABLE DATA

1. WATCH INTRADAY HIGH RANGE

This data helps to identify the movements of the market, simply, if market has remained under low range for a day or two,  it will be followed by High Intraday Range Trade (HIRT), now it is the job to predict which side the range will be extended i.e. either towards upside or towards downside. Sometimes, subsequent to Gap-up open, if prevailing circumstances are negative, the range will be extended towards downside, similarly, if prevailing circumstances are positive, after gap-down opening the range will be extended towards upside, so accordingly position may be taken in Cash and F&O Segment.

2. WATCH NEAREST DMA FOR BREAKOUT OR BREAKDOWN

In most stock markets, the 5 DMA (If 5DMA is broken continue to watch other DMAs) is generally the trigger point for a breakdown or breakout, or reversal. For example, if the market has made new highs in the recent past, it may start trading in a way that reduces the margin between the Spot Price and the 5 DMA (Other DMAs may also be considered depending on circumstances). Now, form an equation, if the 5 DMA is broken, the market will experience a breakdown. If this is supported by a substantial spike in Call Option Open Interest (Check option chain to Check Open Interest), it will make the prediction more reliable.

Similarly, if the market has remained down substantially, it may begin trading in a way that reduces the margin between the Spot Price and the 5 DMA. Now, form an equation where, if the 5 DMA is broken, the market will experience a breakout. If this is supported by a substantial spike in Put Option Open Interest, it will make the prediction more reliable.

Remark: Reading of Option Chain is Technical, will present blog “how to read option chain”.

3. WATCH PREVIOUS HIGH & LOW LEVELS

The above strategy will help in predicting stock market movements. Furthermore, to estimate how much the market will go up or down? predictions will be based on previous low and high levels. In the case of a breakdown, the market will find support at the previous low. If this level is broken, the market will move down to the second low level. If that level is also broken, it will continue to move down to the third low level, and this will persist until the market reaches an oversold condition. If this is happening, fasten your seatbelt and observe. After the levels are broken, the market may drop by the same amount it has risen earlier to reach these levels. Regardless of the magnitude of the decline, it could exceed expectations. In the case of a breakout, the market will find resistant at the previous high. If this level is broken, the market will move up to the second-high level. If that level is also broken, it will continue to move upside to the third high level, and this will persist until the market reaches an overbought condition. If this happens, fasten your seatbelt and observe. After the levels are broken, the market may extend by the same amount it has moved down earlier to reach these levels. Regardless of the magnitude of the upside, it could exceed expectations.

4. WATCH & ACT PATIENTLY, IF MARKET GOES AGAINST TREND

During trading sessions, market movements may often deceive traders by going against the trend. Such movements present prime opportunities for F&O traders and can be leveraged to make profits. For example, if trend of market is upward and market goes down, take position as market is up and vice-versa. Use charts to fix support and resistant levels using DMAs, previous high and low accordingly.