Introduction: What is the Dunning-Kruger Effect?The Dunning-Kruger effect is a cognitive bias where people with low ability, knowledge, or skill in a particular area overestimate their competence. In everyday life, it might show up when someone who's only just started...
Introduction to Candlestick PatternsCandlestick patterns are powerful tools in technical analysis that help traders understand market sentiment and make informed trading decisions. By examining the shape and formation of candlesticks, traders can spot potential...
When it comes to achieving mastery in anything, be it trading, sports, or even baking the perfect loaf of sourdough, there's one thing that separates the masters from the amateurs: a willingness to revisit the basics over and over again. I know, it’s...
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...
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...
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...
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...
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...
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...
"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...