WY-01-07 / 01
Step One: Establish the Overall Market’s Position and Probable Direction
First Principles
Lesson / WY-01-07
The five-step method starts with the overall market because many stocks share the effects of index flows, industry changes, and risk appetite. Expanding market-wide selling pressure can suppress a stock’s local strength, while an advancing market provides candidates with aligned context. Step one does not predict the next bar; it assesses which side can more easily move price and hold a new area now.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
7 lessons · Chapter contents
01Step One: Establish the Overall Market’s Position and Probable Direction↗02Step Two: Select Instruments Aligned with Market Direction and Suitable Relative Performance↗03Step Three: Assess Whether the Established Cause Supports the Expected Target↗04Step Four: Assess Whether the Instrument Is Ready to Move↗05Step Five: Time Participation with the Overall Market↗06Dependencies and Reassessment between Steps↗07Redefinition and Adaptation beyond Stock Selection↗Observe the market: start with context and place price within its structure.
Understand structure: compare supply and demand, and let evidence support or revise your hypothesis.
Form a view: define risk limits and know when to reassess.
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