The Hanging Man is a Japanese candlestick pattern that often appears at the top of an uptrend, signaling a possible end of the current price increase. Trading with the Hanging Man pattern typically involves opening a short position in a rising market, which carries higher risks. This article explores how to reduce those risks and […]
The doji pattern is a candlestick where the opening and closing prices are nearly the same. While doji candles are a common feature on charts, the real challenge lies in the uncertainty during their interpretation. Traders are often advised to consider the broader market context and use additional tools to enhance their trading strategies. In […]
A bear trap is a market situation that can mislead inattentive traders. It consists of two movements: First, the asset price falls, creating the illusion of the beginning of a downtrend. Traders anticipating further decline rush to sell the asset, becoming bears. However, shortly after, the price begins to rise. This usually happens very rapidly, […]
The inverted cup and handle is a bearish chart pattern that signals a potential price drop once it is completed. At first glance, this basic pattern may not seem particularly interesting to traders practicing regularly. However, analyzing it through cluster charts offers deeper insights into the reasons behind the bearish price movement. Specifically, it highlights […]
Support and resistance level is not just a basic trading concept — it is a powerful tool used by professionals. These levels play a crucial role in predicting price behavior in the market, offering profit opportunities. How can you find strong support and resistance levels? In this article, we will discuss 10 indicators that can […]
The Piercing Line is a two-candle reversal pattern in candlestick analysis that typically appears at the end of a downtrend, indicating a possible shift toward an upward movement. The pattern is sometimes referred to as the Piercing pattern. Trading the Piercing Line pattern involves making decisions against the prevailing trend, which carries higher risks. This article […]
The hammer pattern in candlestick analysis is a candle with a narrow body and a long lower shadow. It is believed that a proper hammer appears after a downtrend and indicates the end of selling pressure and the start of buying activity. In other words, it signals a trend reversal from downward to upward. However, […]
Wolfe Waves are a trading pattern developed by Bill Wolfe. This article provides a comprehensive guide to trading using this chart pattern. Read more: How Wolfe Waves Work Identifying Wolfe Waves on a Chart Wolfe Wave Indicator How to Trade Wolfe Waves: General Rules Examples on Charts Trend Trading Trading Trend Reversals What Is the […]
The megaphone pattern is a chart formation that looks like an expanding triangle. It appears on the charts of stocks, currency pairs, or other financial instruments, and is characterized by widening boundaries where the highs and lows move in opposite directions, forming a shape similar to a megaphone. Read more: Examples of the Megaphone Pattern […]
In trading, an inside bar is a pattern where a candle is fully contained within the range of the previous candle (bar). The high is lower than the previous bar’s high, and the low is higher than the previous bar’s low. Low of the previous bar < Low and High of the current bar < […]