Before doing anything first you need to identify the structure of the market. You need to know whether the trend of the scrip is in:
- Uptrend
- Downtrend
- Sideways
Uptrend
When scrip is making HH (higher highs) and HL (higher lows) and price is increasing then the scrip is in uptrend.
Take for example the image below which is the KSE-100 1W time frame chart. As you can see from the chart the index is in an uptrend. Its continuously making HH and HL on the chart.
Downtrend
When scrip is making LH (lower highs) and LL (lower lows) and price is increasing then the scrip is in downtrend.
Take for example the image below which is the STPL 1W time frame chart. As you can see from the chart the scrip was in a downtrend for 2 years.
Sideways
When a scrip moves in a range of highs and lows and does not break those ranges then we say the scrip is in sideways.
Take for example the image below which is the WTL1W time frame chart. As you can see from the chart the scrip has been in a sideways trend for some time now.
Remember one thing and that is to identify the trend in higher time frame like monthly or weekly time frame. Read more about time frames here