Beginner Guide
Step-by-step roadmaps for traders starting funded challenges.
What Is the Death Cross and How Does It Impact Trading?
Short answer: a death cross is the moment a shorter moving average, usually the 50-day moving average, closes below a longer one, usually the 200-day moving average. Traders read it as a bearish…
Gartley Pattern: Ratios, D-Point Zone, Entry, Stop and Targets
Short answer: the gartley pattern is a four-leg pullback structure, labelled X, A, B, C and D. It marks where a correction should end and the prior trend should resume. Its defining fibonacci…
Golden Cross Explained: What the 50/200 Crossover Really Signals
Short answer: a golden cross is a chart event where a shorter moving average climbs above a longer one. The usual pairing is the 50-day moving average crossing above the 200-day moving average.…
Harmonic Patterns Explained: What the Family Shares and How to Choose One
Short answer: harmonic patterns are multi-leg reversal shapes, usually labelled X, A, B, C and D. Each leg must land within a fixed band of fibonacci ratios measured against the leg before it.…
The January Effect: What It Is and Whether It Still Pays to Trade It
Short answer: the January effect is the observed tendency of stocks, mainly small-cap stocks, to rise more in January than in other months of the year. It was first described in the 1940s and…
The Marubozu Candle: Definition, Types, and Trading Rules
Short answer: a marubozu candle is a single candlestick with a long body and no shadow, or only a sliver of one, above or below it. Price opened at one extreme of the period and closed at the…
Megaphone Pattern: How to Read a Broadening Formation and Trade It
Short answer: a megaphone pattern is a broadening formation. Price prints a higher high, then a lower low, then a higher high again, so the two boundary lines diverge instead of converging. It…
Money Flow Index (MFI): How to Calculate and Read It
Short answer: the money flow index is a volume-weighted momentum indicator that runs from 0 to 100. It multiplies each bar's typical price by its trading volume, then sorts that money flow into up…
What Is a Moving Average Crossover and How to Use It in Trading
Short answer: a moving average crossover is a signal that fires when a faster moving average crosses a slower one, or when price crosses a single average. The fast line tracks recent closes and…
Parabolic SAR: How the Stop and Reverse Indicator Works and When to Trust It
Short answer: the parabolic SAR is a trend-following trading indicator that plots one dot per bar, below price in an uptrend and above price in a downtrend. The dot works as a trailing stop that…
Piercing Pattern: How to Spot and Trade This Bullish Reversal
Short answer: the piercing pattern is a two candle bullish reversal pattern that forms at the end of a decline. Candle one is a solid bearish bar. Candle two opens below candle one's low, reverses…
The Quasimodo Pattern: How to Read It and Trade It
Short answer: the quasimodo pattern is a reversal structure that looks like a lopsided head and shoulders. In the bearish version, price prints a high, then a higher high, then breaks below the…