Stock markets are dynamic and operate in ever-changing environments. Look at the current environment where global stock markets plunged after Russia ordered troops and full-scale invasion into parts of eastern Ukraine. 

Asian stock markets tumbled, while oil prices hit seven-year highs amid the threat to Ukraine by Russia. It is a matter that can affect monetary policy, and the taken measures could disrupt the global economic recovery from the ongoing pandemic. More and more companies intended to issue their Initial Public Offerings (IPOs) to utilize the recovery phase. But this crisis may affect upcoming IPOs schedules.

Traders keep practicing technical analysis to make money. Technical analysis can be defined as a financial asset’s past and present price movements to anticipate future market behavior and then create trading rules. To cope with such market fluctuations, traders need to be flexible to change their trading strategies. 

Amid this crisis in Russia and Ukraine, experts are looking at energy stocks and commodities to trade in order to cope with the market fluctuations. You can open trading account online with your Demat account to trade based on your analysis and expert advice. 

Technical Trading Rules 

Technical traders rely on the relationship between the current market price and price history to decide on a security’s purchase or sale. They need to devise several technical trading rules to be befitted with trends and patterns in the market. You can go through the technical trading rules given below and understand their profitability.

• Make the market trend your friend 

A trend indicates a directional move in a stock price, determined through several technical charts. Technical traders qualify trends with periodic higher highs or lower lows. These technical indications are required to spot trends and then employ trend-based strategies. Follow these two essential rules to live deal with trends:

• A favorable market entry is when it is with the trend.
• A route against the market trend is highly risky.

It is a basic and old concept, yet you always need to keep in mind to make the trend your friend. 

•  Be familiar with the Support and Resistance Concepts

Support and resistance levels are trading indicators. A support or resistance level is a price level that may restrict (or not) price action. A resistance level limits bullish price action but restricts bearish price action. If you are able to locate support and resistance levels, it is easy to integrate them into your trading strategy. What technical traders do is:

• Taking a position to the long (buy) from support
• Taking a position to the short (sell) from resistance

• Say no to Long-term Trends 

Trend-following strategy users should keep in mind that nothing lasts forever. If you master the art of identifying a trend-end, you can determine the overbought or oversold conditions in the market. This may be accomplished with the use of the relative strength index (RSI). It helps you know the signs of trend exhaustion and a likely market reversal.

• Consider Multiple Time Frame Analysis

You can use identified trends in the proper context by scrutinizing monthly, weekly, daily, and intraday charts. For sharp multi-timeframe analysis, you need to: 

• Determinate the macro market condition with the help of longer-term pricing charts
• Establish current trading states using shorter-term or intraday charts

There is no hard and fast rule for the most common time frame for day trading. Day traders can know the true state of markets by a weekly or daily chart. Later you can use the hour or the minute charts to establish entry and exit points.

These are the common and profitable technical strategies and rules. Based on experts’ opinions, market participants should reassess their risk profile and consider allocations to commodities and energy stocks as they can help investors to hedge a portfolio against risks amid the Asian market crisis.