An ICT Order Block and a Breaker Block are key concepts in the Smart Money Concept (SMC) trading methodology developed by Michael Huddleston, also known as the Inner Circle Trader (ICT). This article provides a practical guide with examples, explaining what an Order Block and a Breaker Block are, why they are effective, how to […]
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 […]
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 […]
Fair Value Gaps (FVG) are impulse price movements caused by an imbalance between buyers and sellers. This article provides a practical guide with examples of what a FVG is, how to identify it on a chart, and how to use this pattern in trading. You will also learn how to apply a strategy using the […]
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 < […]
A bull trap is a market scenario with a deceptive price increase. Traders start buying the asset, expecting the uptrend to continue, but the price soon reverses and begins to fall. As a result, those caught in the trap end up closing their positions at a loss. Bull traps are common across all markets and […]
This is another article on the topic of VSA and cluster analysis. Earlier we have considered: Bag Holding and End of Rising market patterns; No Demand and No Supply patterns; Buying and selling climax patterns. In each previous article, we have grouped two patterns that are in many ways “mirror images” of each other. Shakeout […]