Trading Education: Strategies & Patterns

Explore trading strategies, chart patterns, risk management, and market fundamentals.

Bull Flag

A continuation pattern that forms after a sharp impulsive move up, followed by a brief consolidation channel sloping downward before the next leg higher.

Bear Flag

The bearish mirror of the bull flag — a sharp drop followed by a brief upward consolidation before the downtrend continues.

Head & Shoulders

A classic reversal pattern with three peaks — left shoulder, head (highest), right shoulder — signalling a shift from uptrend to downtrend.

Inverse Head & Shoulders

The bullish counterpart to head and shoulders — three troughs with the middle being the lowest, signalling a reversal from downtrend to uptrend.

Ascending Triangle

A bullish continuation (or reversal) pattern with a flat resistance top and rising support lows, signalling accumulation and an imminent breakout.

Descending Triangle

A bearish continuation pattern with a flat support bottom and declining resistance highs, signalling distribution before a breakdown.

Symmetrical Triangle

A neutral consolidation pattern with converging trendlines — direction of breakout determines bullish or bearish continuation.

Rising Wedge

A bearish pattern where price rises within a narrowing wedge — both trendlines slope up but the lower rises faster, signalling weakness.

Falling Wedge

A bullish pattern where price declines within a narrowing wedge — both trendlines slope down but the upper falls faster, signalling exhaustion of sellers.

Double Top

A bearish reversal pattern where price tests a resistance level twice and fails, confirming a shift from uptrend to downtrend.

Double Bottom

A bullish reversal pattern where price tests support twice and holds, signalling a shift from downtrend to uptrend.

Engulfing Candle

A two-candle reversal pattern where the second candle's body completely engulfs the first — bullish engulfing signals reversal up, bearish engulfing signals reversal down.

Pin Bar (Rejection Wick)

A single-candle pattern with a long wick and tiny body, signalling strong price rejection at a level — bullish when wick is below, bearish when wick is above.

Inside Bar

A two-candle pattern where the second candle is completely contained within the range of the first — signals consolidation and a potential continuation or reversal breakout.

FVG — Fair Value Gap

A three-candle imbalance where the wicks of the first and third candle don't overlap — price often returns to fill this inefficiency.

BOS — Break of Structure

A candle that closes beyond the most recent swing high or swing low, confirming trend continuation in the direction of the break.

CHOCH — Change of Character

The first candle to close against the established trend, signalling a potential reversal and shift in market character.

Support & Resistance

Horizontal price levels where buying or selling pressure has repeatedly emerged — the foundation of all technical analysis.

Breakout Strategy

Enter when price closes beyond a key level — trading the momentum of a breakout with stops below/above the breached level.

Mean Reversion Strategy

Fade extended moves by trading the return to average price — best in range-bound or choppy markets.

Momentum Strategy

Trade in the direction of strong, accelerating price movement — riding trends when they are clearly established.

R-Multiple (Risk-Reward Ratio)

A standardised measure of trade performance expressed as a multiple of the initial risk — the core language of professional risk management.

Position Sizing

Calculate how many units to trade so that a stop-loss hit never costs more than a fixed percentage of your account.

Stop-Loss Placement

Place stops beyond invalidation levels — where the market would prove your thesis wrong — not at arbitrary dollar amounts.

Managing Maximum Drawdown

A 50% drawdown requires a 100% recovery — keeping drawdown small is critical to long-term compounding.

VWAP: The Institutional Trader's Benchmark

VWAP (Volume Weighted Average Price) is the most important intraday level used by institutional traders — and knowing how institutions use it gives you a decisive edge.

Ichimoku Cloud: Japan's All-in-One Trend System

The Ichimoku Cloud combines trend direction, momentum, support/resistance, and signal generation in a single indicator — once decoded, it's one of the most complete systems in technical analysis.

Options 101: Calls, Puts, and the Right to Trade

Options give you the right (but not the obligation) to buy or sell an asset at a fixed price before a specified date. Understanding them unlocks powerful tools for income, speculation, and risk management.

Stocks vs ETFs: Which Should You Trade?

Individual stocks offer leverage to company-specific catalysts; ETFs offer diversification and smoother technicals. Knowing when to use each is a key strategic decision.

Tutorial: How to Read an Order Book (Level 2 Data)

Level 2 shows you real-time bids and asks with their sizes — understanding how to read order flow and spot spoofing, large block orders, and thin liquidity zones gives active traders a significant edge.