Explanation of Bearish Engulfing Candlestick PatternThe Bearish Engulfing candlestick pattern is a two-candle reversal pattern that typically signals a bearish trend following an upward movement. It forms when a smaller bullish (upward) candle is immediately followed by a larger bearish (downward) candle, which "engulfs" the previous candle’s body. This pattern suggests that selling pressure has...
Explanation of the Bullish Engulfing Candlestick PatternA Bullish Engulfing pattern is a two-candlestick formation that signals a potential reversal from a downtrend to an uptrend. It occurs when a small bearish candle is followed by a larger bullish candle, which "engulfs" the body of the previous candle. This pattern suggests that buyers have taken control, indicating a possible shift in...
Explanation of Inverted Hammer Candlestick PatternThe Inverted Hammer candlestick pattern is a bullish reversal signal that typically forms at the bottom of a downtrend. It features a small real body at the bottom, with a long upper shadow that is at least twice the length of the body. This pattern indicates that, although sellers initially pushed the price lower, buyers stepped in later in the...
Explanation of Hammer Candlestick PatternThe Hammer candlestick pattern is a bullish reversal pattern that typically appears at the end of a downtrend. It signals that a stock may be nearing its bottom, suggesting that the sellers have exhausted their strength and buyers are starting to take control. The Hammer is characterized by a small real body at the top of the candlestick, with a long...
Explanation of Doji Candlestick PatternThe Doji candlestick pattern is a signal in technical analysis that reflects market indecision. This pattern forms when the opening and closing prices are nearly identical, resulting in a small or non-existent body. The Doji is typically characterized by long upper and lower wicks, signifying that price moved both higher and lower during the session but...
In trading, we often get attached to certain ideas and beliefs... then we inevitably find evidence to support those beliefs - this is called confirmation bias. Whether it's a strategy we've relied on for years, an indicator that's "never failed," or a pattern we think is rock solid—our brains love consistency and familiarity. But what if the best way to improve as a trader is to challenge those...
"It's easy to stay motivated when you have momentum."This quote is so true, isn't it? When trades are going well, profits are rolling in, and your equity curve is shooting upwards, it's almost effortless to stay committed and focused. It's easy to push forward, to feel that energy and drive when you see tangible results. You feel invincible, like you're riding a wave of success that will never...
The Scarcity of the Long-Term - It's something we don't often think about in our everyday lives. It's like driving a car while only staring at the hood. You'll eventually crash, right? The same applies to our financial lives. We often focus on the short-term, chasing quick wins, quarterly returns, or that next paycheck. But what about thinking beyond today? What about building wealth that not...
TLDR - Trading Courses Summary Not all trading courses are equal: Many cheap courses rely on high pressure upsells and hidden fees such as expensive commissions from the recommended broker, leaving you exposed to high ongoing costs without delivering real value. Avoid Coursera trading courses: These courses often provide only surface level of knowledge with no mentorship or actionable systems....
The short stock profit calculator is a powerful tool that helps traders evaluate the profitability of short trades. By entering key trade data such as entry price, exit price, commissions, number of shares, days held, and the stock borrow rate, the calculator determines your net profit or loss, taking into account all associated costs. The Short Stock Profit CalculatorStep-by-Step Explanation of...
The Drawdown Calculator is a valuable tool that helps traders calculate both the percentage and dollar drawdown of their portfolio. By understanding the severity of a drawdown, traders can make better decisions about managing risk and preserving capital.Understanding the Drawdown Calculator Formula The drawdown is the decline in portfolio value from its peak to its lowest point. The formula for...
The Capital Gain Stock Calculator (a.k.a. Taxes on Selling Stock Calculator) is a handy tool for traders looking to estimate their capital gains and the taxes owed on stock trades. It allows you to input essential details such as purchase and sale price, dates, and tax rates, giving you a clearer picture of your taxable gains. However, this calculator serves as an estimate only—consult your tax...