Market trends play a crucial role in trading. They show the general direction in which a stock or market moves over a specific period. Trends can be upward (bullish), downward (bearish), or sideways (no clear direction). Recognising these trends helps you decide when to buy, hold, or sell assets.
Today, you do not need multiple screens or complex setups to track market trends. With a mobile trading app, you can study the trends, react in real time, and make well-informed decisions from anywhere. Let’s understand how in detail below.
Learn to use chart types
Charts visually represent price movements. The most informative is the candlestick chart. Each candlestick in your trading app captures four critical price points within a chosen timeframe. They are:
- Opening
- Closing
- Highest
- Lowest
The body shows the closeness of the opening and closing prices. “Wicks” (also known as shadows) indicate the extremes of price movements. Green/white candles reveal upward momentum (closing price above open), while red/black candles indicate downward pressure (closing price below open). Reading sequences of candlesticks helps you find out whether bulls or bears dominate the market sentiment.
Timeframes also matter. Use shorter timeframes, like 5-minute or 15-minute charts, for intraday trading to catch rapid changes, while daily charts help observe broader or detailed trends.
Know key technical indicators
Mobile trading apps have a range of technical indicators. They help confirm what the charts show and give you additional insights. Take a look at some of the most useful ones:
- Moving Averages (MA): This indicator evens out price data to create a single line. A rising moving average suggests an uptrend, and a falling one signals a downtrend.
- Relative Strength Index (RSI): The RSI is a momentum indicator. It measures the speed and magnitude of price changes on a scale from 0 to 100. An RSI above 70 suggests the stock is overbought, and a price correction might be coming. Readings below 30 suggest the stock is oversold, and a reversal might be near.
- Moving Average Convergence Divergence (MACD): The MACD shows the relationship between two moving averages. When the MACD line crosses above its signal line, it gives a bullish signal (potential buying opportunity). When it crosses below, it gives a bearish signal (potential selling opportunity).
Analyse volume levels
Volume reflects the number of shares traded in a given period and helps confirm market trends. Rising prices with high volume hint at strong buying interest, while falling prices with high volume indicate selling pressure. Combining volume analysis with price charts improves the accuracy of trading decisions on your trading app.
Monitor market news and sentiment
Most trading apps have a dedicated news section that highlights updates from financial sources, company announcements, and foreign markets. It is a good idea to check this feed regularly to gauge sentiment that may influence trends. Positive earnings, policy changes, or sector news might drive prices up, while negative reports could trigger declines.
When you pair news insights with chart study, your trading decisions capture market trends alongside real-world developments.
Closing note
So these are some ways through which a mobile trading app helps you analyse market trends effectively. By using charting tools, applying indicators, and following live market news, you can understand the direction and strength of a trend. Applying these methods consistently builds discipline and confidence in trading decisions.
For a seamless trading experience and access to powerful analysis features, trust MO Riise. Backed by Motilal Oswal, a SEBI-registered public entity, MO Riise is used by over 40 lakh users. Benefit from advanced interactive charting, real-time market updates, customisable watchlists, lightning-fast order execution, expert-backed research, and 24/7 support. With StoCoMo, an in-app community of traders, FAQs, and video tutorials, you can also learn and improve your trading skills.
Open a demat account on MO Riise in 15 minutes and start trading today!
Santosh Kumar is a Professional SEO and Blogger, With the help of this blog he is trying to share top 10 lists, facts, entertainment news from India and all around the world.
