The Bearish Harami candlestick pattern signals a potential shift in momentum. It appears when a large bullish candle is followed by a much smaller bearish candle that stays within the first candle’s body. Traders see this as a warning sign that the uptrend might be losing strength. Understanding this pattern can help you recognize possible reversals before they fully develop. This guide explains...
Momentum shifts are what traders look for when spotting potential reversals. The Bullish Harami candlestick pattern is one such signal, appearing when sellers lose control and buyers start taking over. This two-candle pattern suggests a possible trend reversal, giving traders a chance to catch a new move before it gains momentum. Understanding how this pattern works, when to use it, and how to...
Markets rarely move in a straight line. Even in a strong downtrend, there are moments when the price finds support and buyers step in. The Tweezer Bottom candlestick pattern is a signal that sellers may be running out of steam, and a reversal could be on the horizon. This pattern appears when the price reaches the same low on two consecutive candles but fails to break lower, suggesting that...
Traders always look for technical indicators that reveal shifts in market sentiment and trend direction. The Dragonfly Doji candlestick pattern is a Japanese candlestick pattern that suggests a potential trend reversal or continuation pattern, depending on the market context. But spotting a Dragonfly Doji alone isn’t enough. Traders must analyze its pattern formation, validate it with...
When markets trend down, traders look for signs that a trend reversal signal could be near. The Piercing Pattern candlestick is one such Japanese candlestick pattern, often catching the attention of traders who want to anticipate bullish candlestick pattern moves early. But spotting the candle pattern is just the first step. Understanding its market structure, strengths, and limitations is what...
Markets move in trends, but every trend eventually slows down or reverses. The Tweezer Top candlestick pattern is one of the signals traders can use to spot when an uptrend might be running out of steam. This pattern appears when the price reaches a high on two consecutive candles but fails to break through, suggesting potential weakness. Understanding this pattern and its context can help...
The Chaikin Volatility trading Indicator developed by Marc Chaikin, is a powerful tool that measures market volatility by tracking the difference between high and low prices over a given period. Unlike the Average True Range (ATR), the Chaikin Volatility Indicator ignores price gaps and focuses solely on the spread between high and low prices. This article explains how the Chaikin Volatility...
If you’ve ever hesitated to place a trade, second-guessed your decisions, or felt stuck analyzing the market for hours—you’re not alone. Analysis paralysis is one of the biggest reasons traders never go live. The fear of making a mistake keeps you in an endless loop of research, waiting for the "perfect" moment. But here’s the truth: Trading confidence doesn’t come from knowing more. It comes...
Traders are always searching for clues about where the market might head next. The Spinning Top candlestick pattern is one of those signals that suggests indecisiveness in markets, reflecting a balance between buyers and sellers. This common candlestick pattern appears when neither side gains absolute control, leaving the market in a state of uncertainty. While this single candlestick pattern...
If you've been trading for a while, you've probably come across the Shooting Star pattern. It’s one of the simplest trading strategies to spot potential reversals, yet many get caught in false signals. This pattern can signal that an uptrend is running out of steam, but like any trading tool, it needs context and confirmation. This guide breaks down the Shooting Star pattern, how to identify it,...
Gambler’s Fallacy is the belief that past events influence future probabilities in random processes. Imagine flipping a coin five times and getting heads each time. After five consecutive heads, many assume tails are “due,” even though the probability remains 50/50. This deceptive psychological bias leads us to believe that random market events are somehow interconnected—a classic misconception...
Herd mentality is the natural human tendency to follow the crowd. It’s why people rush to buy the latest gadget, why traffic slows down to stare at an accident, and why trends explode overnight. This psychological effect helps people feel secure in their choices and is a well-known phenomenon in trading psychology. I mean, if everyone else is doing it, it must be right… right? When GameStop's...