This image depicts a trading strategy or trading plan.
Essentially, this strategy is about making decisions based on the market trend or behavior. Below is a description of each step:
1. **Identifying the trend (WHAT'S THE TREND?):** First, you need to understand the current market trend or behavior. It can be of three types:
* **Bullish:** When the market price is consistently going up or is likely to go up.
* **Sideways:** When the market price is fluctuating within a specific range, meaning it is not going too far up or down.
* **Bearish:** When the market price is consistently going down or is likely to go down.
2. **Steps according to the trend:**
* **If it is bullish:**
* Then check **"PRICE AT SUPPORT?"** That is, is the price at the support level? The support level is a price point where the price of a stock or currency is likely to increase again after falling, because the number of buyers exceeds the number of sellers.
* If the answer is **"YES"** (yes), meaning the price is at the support level, then **"BUY"**.
* If the answer is **"NO"** (no), meaning the price is not at the support level, then **"DON'T TRADE"**.
* **If it is sideways:**
* Then **"WAIT FOR BREAKOUT"** that is, wait until the price breaks out of that specific range. Breakout means the price significantly moves above or below the support or resistance level.
* **If it is bearish:**
* Then check **"PRICE AT RESISTANCE?"** That is, is the price at the resistance level? The resistance level is a price point where the price of a stock or currency is likely to decrease again after rising, because the number of sellers exceeds the number of buyers.
* If the answer is **"YES"** (yes), meaning the price is at the resistance level, then **"SELL"**.
* If the answer is **"NO"** (no), meaning the price is not at the resistance level, then **"DON'T TRADE"**.
**In summary, this trading strategy is:**
* When the market is bullish, buy at the support level.
* When the market is bearish, sell at the resistance level.
* When the market is not moving in a specific direction and is within a range (sideways), wait without trading for the trend to become clear or for a breakout.
This is a simplified trading strategy and real trading depends on many more complex factors and analyses. It can only serve as a guideline.