Archive List for charts

Candlestick Engulfing Pattern Tutorial

Japanese candlesticks have one ability that most other chart types don’t – they can show so called “engulfing” patterns. An engulfing pattern is defined as when the open and close price of a bullish or bearish candle are within the range of the open and close price of the candle following them. When this happens many traders believe it is a sign that a trend has just finished and this is the best possible entry point. That’s the theory but as we know the market doesn’t always answer to predefined rules. That’s why David Jones includes real examples alongside the theory behind these specific chart patterns. You’ll also see different […]

How to Trade Trend Reversals

Trend reversals are the holy grail of trading. They are the coveted tops and bottoms that represent the ideal entry points for opening new positions and closing existing ones. So here we discuss how to identify them and what risks there are when you try to “time the market” as experienced traders say. Whether you use indicators, fundamentals or news it’s always a challenging task to find that exact point in time when a price has reached its highest or lowest point for a certain period. This is especially true for short-term trades that happen on the minute timeframes. The perception is that there is more randomness and noise that […]

What is Technical Analysis?

In our first video lesson about technical analysis our trading expert David Jones explains the very basics of analysing charts. He focuses our attention on the fundamentals of understanding what we see on a chart and the patterns that govern its movements. The three main patterns are price action, trends and history repeating itself at specific levels that have been seen before. David discusses all three and lays the foundations for the next video lessons that will dissect them in theory and in real examples from the most traded instruments. At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can […]