Position sizing is a critical aspect of trading that determines how much capital to allocate to a given trade. Whether you are trading stocks, forex, or cryptocurrencies, the size of each trade dictates how much profit you can make and, more importantly, how much of your capital is at risk. Position sizing is therefore not just about profit—it’s about the preservation of capital, ensuring that a single loss doesn’t derail your entire portfolio ..read more

Among the many available indicators, the VWAP indicator—or Volume Weighted Average Price—is particularly popular for day trading. By analyzing price movements, volume, and market trends, the VWAP can offer valuable insights into when to buy or sell. It’s a key tool that blends both price and volume, giving traders a clearer picture of an asset's average trading price throughout the day ..read more

The Evening Star pattern is a powerful bearish reversal pattern that signals a potential change in market direction from an uptrend to a downtrend. This classic candlestick formation is widely used by traders to predict trend reversals, especially after a sustained price rally on a higher timeframe ..read more

Elliot Wave Theory (EWT) is a popular method of technical analysis that helps traders predict market trends by analyzing the psychology of market participants. Developed in the 1930s, this theory suggests that market prices follow specific patterns driven by collective investor behavior, known as waves. Understanding these waves allows traders to forecast potential price movements and adjust their strategies accordingly. By mastering Elliot Wave theory trading, traders can gain insights into the structure of market trends, ultimately improving their ability to identify opportunities and manag ..read more

When trading single candlestick patterns, no pattern is more powerful than the engulfing candlestick pattern. You can create strategies with only this pattern that may easily outperform the market. I know a trader who has built his whole career on this pattern alone ..read more

The Cup and Handle pattern is a bullish trend continuation pattern that typically signals a strong upward movement. It was popularized by William J. O'Neil in his book "How to Make Money in Stocks" who allegedly realized a return of 5000% over 25 years ..read more

When it comes to price action trading, understanding candlestick patterns is one of the most important building blocks of your chart reading. These candlestick patterns offer visual cues that help traders anticipate market movements. One of the most powerful and frequently observed patterns is the pinbar candlestick. In this guide, we'll dive into what a pinbar candlestick is, how to identify it, and, most importantly, how to trade it effectively ..read more

Technical analysis is a method used to predict future price movements by studying past market data and looking for specific price patterns. Recognizing patterns can offer valuable insights into potential market trends. One such pattern is the triangle. It's a geometric shape formed by converging price action. Understanding its nuances can be a game-changer for traders. Let's delve into the world of triangle patterns ..read more

When it comes to chart pattern trading, the head and shoulders pattern is among the most well-known and widely used patterns, and this is for good reason. The head and shoulders pattern is more than just a formation but it demonstrates the shifting powers in the markets, helping traders anticipate the next trending phase ..read more

I just recorded a new price action video and here are the 6 most important takeaways from the video.  ..read more