Kicker Pattern vs. Exhaustion Gap: Positives and Negatives

bulish kicker pattern

What is the Kicker Candlestick Pattern? The kicker formation is a reversal pattern that starts with a candle in the direction of the primary trend, followed by a gap contrary to the trend. Talk about being caught on the wrong side of the trade if your judgement is off. The pattern symbolizes a strong change Read the full article →

6 Tips for How to Use the 50-Day Moving Average

5-Day SMA

The moving average indicator is one of the most important and commonly used tools in stock trading. Today we will go through 6 tips for how to use a 50-day moving average. Why Use a Moving Average? The moving average is a trading indicator used to smooth the price action on the chart. The moving Read the full article →

5 Tips for Confirming and Trading the Bump and Run

bump and run

The bump and run chart pattern is a rare formation. So, to make things simple, we will walk you through 5 simple steps for identifying the pattern. I am not going to stop there though. I will also provide you a clean strategy to trade this pattern for profits in the market. What is a Read the full article →

How to Day Trade using the Accumulation Distribution Indicator

ADL Value

What is the Accumulation Distribution Indicator The accumulation distribution indicator (A/D) is an instrument which gives information about the money flow in a stock. The word “accumulation” refers to how much equity of the stock is bought. Contrary to this, the word “distribution” refers to how much equity of the same stock is sold. In Read the full article →

5 Tips for How to Trade with the 200-Day Simple Moving Average

Price and Moving Averages

The moving average is one of the most widely used indicators in all of trading. There are different types of moving averages based on calculation method and duration (periods). Today we will discuss one of the most popular of all moving averages – the 200-day moving average. We will describe its structure and 5 tips Read the full article →

Divergence: How-To Identify and Profit from Conflicting Signals


Have you ever wondered why a stock will continue higher, even though the indicators are all rolling over? Well, this my friend is what we call divergence. In this article, we will cover three indicators and a real-life example for how to trade the setup. What is Divergence? Divergence in trading is the contradiction between price Read the full article →

Rectangle Pattern: 5 Steps for Day Trading the Formation

Rectangle Pattern

Today we will discuss one of the most popular continuation formations in trading – the rectangle pattern. How can something so basic as a rectangle be one of the most powerful chart formations? Well, wait no further, we will show you how to identify the pattern and the 5 essential steps to trading the rectangle formation. Read the full article →

Exhaustion Gap: 7 Steps to Recognize and Trade the Pattern

Exhaustion Gap

If you trade the opening bell, then you are quite familiar with the morning gap. What you might not be so accustomed to is the gap that fails and when I say fails – fails miserably. This type of gap is known as the exhaustion gap.  In this article, I will cover the 7 steps Read the full article →

Golden Cross – 3 Simple Strategies for Trading the Pattern

Golden Cross

If you are a fan of the moving averages, then you will definitely enjoy reading this article. Today we will discuss one of the most important patterns related to moving averages – the golden cross (GS). What is a Golden Cross in Trading? A golden cross in trading occurs when a faster moving average crosses Read the full article →

3 Types of Thrusting Line Candlestick Patterns

Thursting Line Candlestick Pattern

In this article, we will do a deep dive into 3 types of thrusting line candlestick patterns.  We will then explore a few trading examples, so you can apply these techniques in Tradingsim. What is a Thrusting Line Candlestick Pattern? A valid thrusting line pattern starts with a bearish candle on the chart, followed by Read the full article →

5 Reasons Day Traders Love Pivot Points

Pivot Points

Today we will go through the most significant levels in day trading – daily pivot points. When you finish reading this article, you will know the 5 reasons why day traders love using them for entering and exiting positions. Pivot Points Explained Daily pivot points are calculated based on the high, low, and close of Read the full article →

Two Simple Ways to Day Trade Descending Tops

Descending Tops Pattern

What is a Descending Top Pattern? Descending tops develop when the price action produces lower tops between swing lows. As the tops are lowering with each successive move, a bearish trend is forming right before your eyes. Therefore, traders use descending tops to enter short trades. How to Identify a Descending Top Pattern To identify Read the full article →

How to Day Trade the Shooting Star Candlestick Pattern

shooting star candlestick

What is the Shooting Star Candle? The shooting star is a single bearish candlestick pattern that is common in technical analysis. The candle falls into the “hammer” group and is a first cousin of the – hanging man, hammer, and inverted hammer. The shooting star has a small body and a very long upper candle Read the full article →

Three Ways to Trade the Opening Range

Opening Range

The most dynamic and active period of the trading day is the opening range. Since this is the most volatile time frame during the trading day, we believe it deserves special attention from our side. In this article, we will cover three methods for trading the opening range. After reading this material, you will feel Read the full article →

3 Above the Market Trading Strategies that Work

Buy Stop Order Example

In this article we will cover three basic trading strategies you can use with above the market order types.  You maybe thinking that order types is too negative, but you will be surprised to know that in some trading examples, you are required for example to sell a stock short on a bid up and Read the full article →

3 Techniques for Trading the 52-Week Range

52-Week Range

52 Week Range Definition The 52-week range is a technical indicator, which pinpoints the low and high of a stock during a 52-week period. In other words, you identify the high and low over the past year. This is a 52-week range example. The vertical lines on the chart measure a 1-year period from July, Read the full article →

Step-by-Step Guide to Trade the Rounding Bottom Pattern

Rounding Bottom

The rounding bottom pattern is a technical setup for the patient trader.  This is because the pattern can take quite a bit of time to develop before any significant price moves begin. In this article, we will walk you through a step-by-step guide for how to trade the pattern and the key things to look Read the full article →

3 Tips for How to Day Trade Ascending Tops

Ascending Tops

In today’s article, we will cover ascending tops, which is one of the most reliable chart patterns you can leverage when trading bullish price movements. The reason ascending tops are such a predictable pattern is due to the amount of time and price action required to complete the formation – thus increasing their reliability. In Read the full article →

How to Day Trade with the Least Square Moving Average

Least Squares Moving Average

The least square moving average (LSMA) calculates the least squares regression line for the preceding time periods, thus leading to forward projections from the current period. Accordingly, the indicator has the ability to identify what could happen if the regression line continued. Least Squares Moving Average Calculation The indicator is based on sum of least squares Read the full article →

5 Steps for How to Successfully Counter Trend Trade

Counter Trend Moves

We have discussed many trend trading strategies on the Tradingsim blog. In this article, we will examine the 5 steps for trading counter trends, which consists of impulsive and corrective price moves. What is a Counter Trend Move A counter trend move is a price correction opposite to the primary trend.  This move is generally smaller Read the full article →