Trading Academy | Trading Guide for Beginners

What Is the Dark Cloud Cover Pattern and How Do You Trade It?

The dark cloud cover pattern is a two-candle bearish reversal candlestick pattern that appears after an uptrend. A long bullish candle is followed by a bearish candle that gaps up and closes below the midpoint of the bullish candle's body, which shows sellers taking control from buyers.

21 mins read

What Is the Piercing Line Candlestick Pattern and How Do You Trade It?

The piercing line pattern is a two-candle bullish reversal pattern that forms at the end of a downtrend. A long bearish candle is followed by a bullish candle that opens lower and closes above the midpoint of the first candle's body, which shows buying pressure pushing back against sellers.

27 mins read

What Are Tweezer Top and Bottom Candlestick Patterns?

A tweezer pattern is a two-candle reversal pattern that forms when consecutive candles share the same, or nearly the same, high or low. A tweezer top has matching highs after an uptrend and warns of a bearish reversal. A tweezer bottom has matching lows after a downtrend and warns of a bullish reversal.

19 mins read

Inside Bar Candlestick Pattern: What It Is, How to Identify It, and How to Trade It

An inside bar is a two-candlestick pattern where the entire range of the second candle, including its high and its low, sits inside the range of the candle before it. That first and larger candle is the mother bar. The inside bar has a lower high and a higher low, which means price spent the whole period inside the previous candle’s range.

29 mins read

Hanging Man Candlestick Pattern: How to Identify and Trade It

The hanging man candlestick pattern is a single-candle bearish reversal signal that forms at the end of an uptrend. It has a small body near the top of its range, a lower shadow at least twice the length of that body, and little or no upper shadow. The long lower shadow shows that sellers drove price down hard during the session, and the close back near the open shows that buyers tried to push back without reversing the sell pressure dominance.

25 mins read

CFDs vs Stocks: Which Trading Instrument is Right for You?

Global financial markets offer many opportunities for traders and investors, making it critical to understand the available instruments. Two popular choices often mistaken for each other are contracts for difference (CFDs) and stocks, which have similarities and deviations. Let’s delve into these financial instruments' commonalities, differences, and associated risks and why understanding them can empower your trading decisions. By the end, you’ll have a clearer picture of CFDs vs Stocks, helping you determine which might suit your financial goals better.

21 mins read