Protective Call
A Protective Call is a hedging strategy where you buy a call option to protect a short position in the underlying asset. It works best when there’s a risk of the price rising unexpectedly. Ideal for bearish conditions, where the…
Position Trading
Position trading is a long-term strategy where traders hold positions for months to years, focusing on major market trends. It is similar to investing but involves active monitoring of economic conditions, sector performance, and macroeconomic indicators. This approach is less…
Intraday (Day Trading)
Intraday trading, also known as day trading, involves buying and selling financial instruments within the same trading day to take advantage of short-term price movements. Unlike scalping, which involves very quick trades, intraday traders hold positions for minutes to a…
Swing Trading
Position trading is a long-term strategy where traders hold positions for months to years, focusing on major market trends. It is similar to investing but involves active monitoring of economic conditions, sector performance, and macroeconomic indicators. This approach is less…
Heikin-Ashi Chart
The Heikin-Ashi chart (meaning "average bar" in Japanese) was developed by Japanese traders and is a modification of candlestick charts. It smooths out price action by averaging the price data over multiple periods. This makes trends easier to identify by…
Candlestick Chart
The candlestick chart originated in Japan in the 18th century, developed by Munehisa Homma, a Japanese rice trader. He used candlestick patterns to predict rice price movements based on market psychology. Each candlestick represents open, high, low, and close prices,…
Renko Chart
The Renko chart (from the Japanese word "Renga," meaning "brick") was developed by Japanese traders in the 17th century. It focuses only on price movements, forming new "bricks" only when the price moves by a set amount. Unlike traditional charts,…
Kagi Chart
The Kagi chart was developed in Japan during the 19th century and introduced to the Western world by Steve Nison, the author of "Japanese Candlestick Charting Techniques." It is a trend-following chart that changes direction based on significant price reversals…
Point and Figure (P&F) Chart
The Point and Figure (P&F) chart was developed in the late 19th century and refined by Charles Dow, the founder of Dow Theory. Unlike time-based charts, P&F charts focus only on price movements, using X’s to indicate price increases and…
Bar Chart (OHLC Chart)
The bar chart (Open-High-Low-Close or OHLC chart) was developed in the early 20th century as an improvement over line charts. Each bar represents four price points: open, high, low, and close. The left tick represents the opening price, and the…