Buying and Selling the Market

what we mean by Buying the market. A candlestick shows the same thing as an OHLC bar but there is just a rectangular box drawn out between the open and close and I’m sure you will agree that it’s a lot more visually pleasing to look at when comparing the two.
when we buy, we don’t just buy for the duration of one bar only, we might end up holding a trade over a couple of bars. If the market has been moving upwards over a period of time, then that means (on average) there have been more bars closing higher than where they initially open. When you make a buying decision, you are speculating that the market will continue to move upwards from your entry level to your Take Profit level (where you will exit the trade with a profit). However, if the market had to move downward for long enough and reach your Stop
Loss level then your trade will close in a loss
the same concept defines the nature of selling in the market just visa versa. If the market has been moving downward over a period of time that would mean there has been a collection of bars that have closed lower than where they initially opened. When you make a selling decision, you would be doing so based on a speculative view that they market is going to continue moving down between your entry level and lower towards your Take Profit level where you would exit the trade in profit. Once again, if the inverse had to occur and the market moved upwards instead and had to reach your Stop Loss level then you would lose the trade

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