Downtrend Stock Signs Will Long Sideways, Check Now!

zebrablog.net - Sideways stocks are stocks whose costs move sideways or up and down in a limited span. Moreover, it is often said as horizontal or trend number. Sideways can occur at the accumulation stage, participation stage, distribution stage, or capitulation stage in the stock price cycle.

In this opportunity, we will recognize the signs of a downtrend stock that is about to move sideways for a long time. Generally, stock prices that are corrected in or downtrend have the potential to move sideways, if these 4 next characteristics arise.

Loading Starts Reducing

It should be noted, the stock price that fell quite deeply was caused by the hectic selling behavior of traders or investors. And because many of these shares were released, of course the supply would continue to be large. This is in line with the law of supply and demand where when supply exceeds demand, the stock price will tend to move down.

The characteristics of downtrend stocks that are going sideways can be seen from the capacity of businesses that are facing depreciation. The reduced load capacity brought the selling point of focus to weaken in the market. As a result, there is the ability for stocks to enter the sideways era long before the conclusion revolves around aspirations towards an uptrend.

Candle Doji Appears

Doji is a type of candlestick whose initial and closing prices are next to each other or almost the same. Visually, doji have a small body or even have no body at all. Doji candles prove that there is uncertainty that exists in the market. Why is that? Because the emphasis is on buying and selling balances, no one is leading the market. Therefore, stock prices will consolidate (sideways) so that one of the sellers and buyers can lead the market to determine the goals of stock movement.

Support Zone Tried Several Times

Next, the past stock price with a similar support zone indicates that the stock is facing far sideways. As it is known, support acts to hold stock prices from falling too deep. Stock prices are aiming to bounce back up if they hold support. And when the same level of support has been touched for several times, the next day the stock price seems to be moving up and down which means that the sideways era is starting.

The illustration above shows that the stock is sideways, as can be seen from the movement of its costs, which has repeatedly tried the solid support at the 890 price level.

Enter RSI Oversold Type

RSI or Relative Strength Index is a technical marker to measure market volatility. If we use this marker when trading, observe whether the signal shows oversold or overbought. Oversold stocks will aim to consolidate before continuing to rise for some time in the future.

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