Patterns
Chart patterns every trader should recognize — from Head & Shoulders to ABCD formations.
12 Candlestick patterns you should know
Candlestick charts were invented by Japanese rice traders in the 17th century and were used for trading rice contracts from around 1710 onwards. Fundamentally, these are charts that contain more information than the very classic chart, the line chart, and therefore they also provide an opportunity t
ABCD Patterns
The ABCD pattern is one of the most well-known patterns in technical trading. In a more advanced form, it is also known as Gartley patterns. The ABCD pattern describes a correction in the market with a wave formation either in a downward or upward direction. When the formation is completed,… Continu
Andrews Pitchfork
Many trading platforms include a technical tool called Andrews Pitchfork. It is a tool for technical analysis that can help analyze a trend. It was invented by the trader Alan Andrew, presumably sometime in the 1930s. Andrew was a student under the famous Roger Babson, who made a fortune during… Con
Bullish Engulfing
The simpler, the better. That’s often the case with trading strategies. Here is an example of a strategy that can yield a strong return if you enter the market correctly. The strategy has been backtested with good results. We have tested it on 2-, 5-, and 30-minute charts in Dow… Continue reading
Candlesticks
Candlestick charts were invented by Japanese rice merchants in the 17th century and were used to trade rice contracts from around 1710 onwards. Fundamentally, these are charts that contain more information than the classic chart, the line chart, and therefore also offer the possibility of reading th
Cup & Handle Patterns
Cup & Handle is a so-called bullish candlestick pattern that resembles a teacup and is considered one of the most reliable buying formations if you want to safely enter a rising trend in the market. In this article, we explain what the Cup & Handle pattern is. You will learn… Continue reading
Double bottoms and tops
Double bottoms and double tops are well-known patterns that often occur in financial markets. They frequently appear at the end of a trend, signaling the potential reversal of that trend. These patterns often take the form of a double bottom resembling a large “W” and a double top resembling a… Cont
Engulfing strategy
When prices move sharply up or down, diving headfirst into the market is tempting. However, trading based on emotions often ends poorly. Therefore, we have found a simple strategy that can help most day traders “keep a level head” – at the same time, allowing you to participate effectively in… Conti
Fading the zeros
This strategy was coined by the American forex trader Kathy Lien. The technique involves identifying areas in a currency pair where the price approaches a “double zero,” such as 0.7200 in NZDUSD or 1.1200 in EURUSD. The idea is that these areas represent natural support or resistance for thousands o
Fakemove
This strategy is based on the expectation that the price of gold often moves quickly up or down, after which the price levels out again within a few minutes or at most 1-2 hours. We’ve named the strategy “Fakemove” because these movements in gold can be considered “fake moves” –… Continue reading
Falling Knife
When the stock market falls significantly, it can be especially tempting to buy quickly. You don’t want to miss the “unique” opportunity at a good price, and in the rush, you may forget both your common sense and your normal analyses. In trading, they say you’re trying to “catch a… Continue reading
Gartley patterns
The so-called Gartley pattern is built around a simple ABCD formation but appears slightly more advanced. The Gartley pattern is traded by many professional technical traders who often make their own additions to the classic starting point. One of these traders is the American speculator Larry Pesav
Head and Shoulders pattern
One of the most well-known patterns in technical analysis is called the “head and shoulders” formation. This pattern indicates a market reversal and is one of the most reliable signals in technical trading. At the same time, the pattern is easy to understand, even for beginners. Already in the class
Island Reversal
Normally, liquid stock prices appear continuous and smooth because sellers and buyers are constantly in line to bid at the current price. But occasionally, a phenomenon occurs in the stock price where the price ‘jumps’ so much up or down that a break in the graph occurs, where the new… Continue read
Pennant Pattern
A pennant is a continuation pattern within an existing trend. It is a very powerful pattern that allows for setting a tight stop-loss, thereby offering a good risk-reward ratio. How does a pennant form? A pennant occurs after a strong trend, followed by a pause where a consolidation period emerges.…
Price Breaks
Price breaks offer great opportunities for the technical trader. But very often, a trade around a price break ends as a huge disappointment and lost money. This article helps you understand how to trade price breaks correctly. Most traders who use technical analysis are always on the lookout for so-
Round Numbers
Round numbers play a significant role in analyzing all types of markets. Just like resistance and support levels, round numbers are often points where the price may halt. Examples of this can be found in the markets every single day. Many financial markets pause at round price levels, such as… Conti
Support and resistance levels
Support and resistance levels are fundamental concepts in trading, applicable to both long-term investments and short-term day trading. Both levels represent points on the chart where the price tends to halt and, in some cases, reverse direction. Therefore, many traders use these as potential points