The Hammer and Hanging Man patterns go hand in hand and represent a bullish and bearish signal. In this video trading expert David Jones breaks them down and shows us how to spot them on the chart, how to interpret their appearance and what to watch out for before making a trading decision. At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.
The Dark Cloud is one of the more frequent patterns that can be found in charts. Trading expert David Jones deciphers its structure and meaning for us in this detailed video and shows it in real chart examples. Unlike the Engulfing Candlestick pattern this combination of consecutive candlesticks is found a bit more often and are considered more unreliable. Traders look for these formations as confirmations of larger trends, especially if they are around price levels already identified as support or resistances. David demonstrates the theory behind this pattern and showcases it in real chart examples that also have different levels of success. Its equivalent pattern, perceived as a bullish […]
What exactly is a share of a company? How many shares can a company have? What do I get when I buy one? How many can I buy or sell? All these questions get clear answers from trading expert David Jones in this video. From the definition in the dictionary to the real world of markets and trading, we get a simple explanation of what shares are. We also delve deeper into their purpose, what companies do with them and what we can do with them when trading or investing for the long term. Trading 212 is the first company in the UK offering commission free stock trading – you […]
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 […]
It might seem logical what a point or pip is in trading but some traders, especially new ones can get confused about the meaning of the term. This video sheds light on the exact definition of the terminology and what it represents. Different examples of currencies with two, four and five digits after the decimal are included so that you can see what represents a pip. Stocks are also discussed and presented, as they make up a sizeable portion of the trading world. Real examples on the chart are also shown, so that you can place them in context and see how they are used when talking about trades, targets […]
The Slow Stochastic isn’t necessarily among the top three of most popular indicators but it does have a large and loyal following. Our trading expert David Jones takes a look at the math behind it, ways to adjust its parameters and different tricks and tips on how to get the best out of it. It’s one of those indicators that “smooth the edges” – they need a bit more to provide a buy or sell signal. The parameters that build it are designed not to react to sharp moves in both directions (which are often followed by pullbacks) and looks at a broader picture to come into an oversold or […]
One trading jargon that you’ll hear very often is margin. It’s usually in terms like margin account, margin trading and even margin call. It seems a bit complex at first but after this video with trading expert David Jones it should be something quite easy to grasp. David breaks it down to the basics once again and explains the meaning of the word as well as the scenarios in which it’s used. He makes several trades on the Trading 212 platform – one in Forex and one for a stock CFD – and points to the exact value of the margin as it changes once the trade has been opened. […]
In the first video of our new series explaining trading terminology, David Jones looks at one of the first things newbies see when they open a real account – leverage. What is it exactly? How does it work? Is there any way to see it in a real environment? All these questions and more are answered in this video. Leverage is one of the basic things that one has to understand and keep in mind when trading. Many traders, even experienced ones, miscalculate its impact and reduce their chances of a profit. Knowing what it is will improve your risk-management, reduce stress levels and could lead to better decision-making. Do […]
