How To Use Vertical Line To Analyze Market Block

In Forex, analyzing market blocks is very important it let you see what market is doing at that moment and you'll decide whether to take action or not based on what the trend is doing.

To Detect a market block, you need to understand market structure and to understand a market structure you have to understand the moves of a market, whether it's an uptrend or downtrend, you'll should be able to detect an impulsive move and a retrace, and a consolidation market is one which everything just goes sideways without any definite trend.

To locate the vertical line is very easy, just go to the tools page on meta trader and click the vertical line.

Come down to your charts and put the first vertical line from where you see a change in the market structure and then put the second line where the structure ends.

Repeat the same thing for the other moves on your chart and that's how you create a market block, and you will be able to to trade breakouts and impulsive moves with this type of strategy.

Market block also, let you know the state the market is in which will further help your decision making process.

 

[Jasz]

* Set up a market block chart.

The market block chart is a visual representation of the competitors in a market, their products and offerings, and how they compete with each other.

Create a vertical line with the company name on the top. Create two more lines below that for two main products or services. Then create another line below that one for the secondary product.

Below each major offering, list out the competitors' offerings and how they compare to yours. Insert your competitive advantage on the side of your offerings' boxes.

* Analyze the results of your market block chart.

Make a list of all of your competitors, and add them to your market block chart. Add in each competitor's primary offering, then their secondary offering if applicable (if it's different from your own).

Mark down where your company falls into this block: is it at the high end, the low end, or somewhere in between? Mark down each competitor's position as well.

Mark any ancillary products or services with an asterisk. These are things that aren't directly related to your main product but that you might want to eventually offer to help expand your business.