Profit Every Time You See Signs of Strength and Signs of Weakness in the Markets

Business background. Financial data concept with diagram and

The two important questions that constantly arise in the mind person dealing with the stock market are:
1) What is the course of action to be taken when I sense weakness signs?
2) What is the course of action to be taken when I sense strength signs?
Prior to the answering of the above mentioned questions, note that the weakness arises when there is an UP bar in the stock market and strength comes when you are on the DOWN bar in the stock market.
Whenever you sense a weakness feeling while stock trading, it is best advised to take the following steps:
a) Start new short position/positions.
b) Transform or reverse the previous long positions to newer short ones.
c) If you have any long positions, make sure you close them.
Whenever you sense strength, please take the following steps:
a) Start new long position/positions.
b) Transform or reverse the previous short positions to long ones.
c) If you have any short positions, make sure that you close them.

What makes it essential for you to respond to any strength or weakness positions in the stock market?
This is mainly because, the moment you sense a strong or weak position in the market, the first ones to act would be market makers and professionals who would take the maximum benefit out of their stocks by taking appropriate steps.
How do I get to know of the “true” signs of strength and weakness?
To have a clear idea about the strengths and weaknesses of your stocks, you should monitor a volume bar that would help you pick the signs.
If in case you do not have any such volume bar, it is clearly indicated that there is no professional money involved in the stocks and you would have no idea if your position is weak or strong. This would result in the outcome being opposite of what you had anticipated. This would result in a slump period where it gets accumulated until the next indicator is available.
The Golden Rule
You need to understand where the professional money exists and make sure that you follow them. When there is no interest from their side, you should stop showing interest too and if there is an interest, which can be seen by the active trading, you can instill more confidence on your judgmental skills.
Generally, not much of the traders would have an idea about the functioning of the market. Hence, it is advised that you know the market thoroughly and learn how the professionals in the industry work. This would help you to perfectly pitch your entry and exit points so that you stand benefitted at the maximum in the stock market.
For Example:
Whenever there is a sharp upward trend, you may anticipate a fall. When it goes up, sellers get tempted and this would affect them adversely. Instead, professionals would know the right time to enter and exit themselves with the shares, stocks, commodities or currencies they deal with. Similarly, when there is a fall, anticipate a weakness. You can study this more by looking at the way professionals in the stock market perform. This can be done by studying any stock market, be it Dow, Dow Jones, FTSE, NASDAQ or the Nikkei Stock Market.
This said, it is important that you know the way market functions before you start trading in it. As people first trade and then try to understand how the markets work, they are not able to achieve much success. To know more, read the book “The Undeclared Secrets That Drive the Stock Market” by Tom Williams, which is a masterpiece by a professional himself.