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...
Most traders spend years searching for the perfect system—but what if the real key to success isn’t about finding the “right” strategy, but asking the right questions? This week, we’re diving deep into the mindset shifts that separate struggling traders from consistent winners, the biggest cognitive biases holding traders back, and a game-changing trading formula that can help you build a...
The Hanging Man candlestick pattern is one that catches many traders' attention. It is a technical analysis tool that shows up at the end of an uptrend and might signal a potential reversal. But like any pattern, it’s not foolproof. Traders who blindly rely on it without context or confirmation often get caught on the wrong side of the market. If you’ve ever seen this pattern and wondered,...
Have you ever held onto a stock simply because of the previous price you initially paid for it? Or hesitated to buy because a stock seemed "expensive" relative to a past price level? If so, you've experienced anchoring bias in trading in your everyday life. Anchoring bias occurs when traders rely too heavily on an initial anchor, like their entry price, to make financial decisions, even when...
When a strong uptrend starts losing momentum, traders look for signals that indicate a potential trend reversal. One of the most reliable bearish candlestick patterns for this purpose is the Bearish Abandoned Baby. It warns that buying pressure has faded and sellers are taking control. This pattern often appears after a prolonged uptrend and suggests a reversal of a bullish trend. While the...
What is Anchoring and Adjustment in Trading?Have you ever bought a stock and fixated on the initial stock price you paid, refusing to sell until it returns to that level, even when the market condition is telling you to get out? That's what we call Anchoring and Adjustment Bias, and it's one of the sneakiest trading psychology traps in trading that relates to everyday decisions. This mental...
The Evening Star candlestick pattern is often regarded as a reliable indicator of potential trend reversals in the financial markets. Frequently used by technical traders, this three-candle formation signals a shift from bullish momentum to bearish sentiment, often marking the early stages of a downtrend. Understanding this pattern is useful for traders seeking to identify high-probability...