Trading strategy guides
Plain-words guides to indicators, strategy rules and risk. Test every idea on paper first.
RSI explained: what overbought and oversold really mean
Basic3 min read
RSI is a speedometer for recent price moves, not a measure of value. Learn what it shows, what it cannot tell you, and how to test a rule built on it.
MACD explained: the signal line, the zero line and the crossIntermediate2 min read
MACD is two moving averages arguing with each other. See how it is built, what a bullish cross means, and what it cannot promise.
Bollinger Bands explained: volatility, squeezes and band touchesIntermediate2 min read
Bollinger Bands are a volatility gauge drawn on a price chart, not a support and resistance line. Learn how they are built and what a touch really tells you.
Moving averages explained: SMA vs EMA and how traders use themBasic2 min read
A moving average smooths price into one line so the trend is easier to see. Learn the difference between SMA and EMA, and what these lines cannot tell you.
Golden Cross and Death Cross explained in plain wordsBasic2 min read
The Golden Cross is the 50-day average crossing above the 200-day average; the Death Cross is the reverse. Learn what they show, why they are late, and how to test them.
What is backtesting? How to test a trading idea on historyBasic2 min read
A backtest replays a written rule on past prices to see how it would have behaved. Learn what it can show, what it cannot, and how to run a fair one.
Paper trading for beginners: practise with virtual money firstBasic2 min read
Paper trading means trading with virtual money and no real orders. Learn how to use it to test a rule, and where it differs from the real thing.
Stop-loss vs trailing stop: two ways to limit a lossBasic2 min read
A fixed stop sits at one price; a trailing stop follows the highest price reached. See how each behaves and why neither is strictly better.
Position sizing explained: why how much you buy mattersIntermediate2 min read
Two accounts can take the same trade with the same stop and end in very different shape. The difference is how much each one put in.
Trading charges explained: brokerage, STT and slippageBasic2 min read
A strategy's edge is measured before costs, but every trade pays them. Learn the main charges and why frequent trading needs a bigger edge.
Trend following vs mean reversion: two opposite betsIntermediate2 min read
Every trading rule is a bet on one of two opposite ideas: that a move continues, or that it reverses. Knowing which one a rule makes matters more than how many rules you run.
How to read a backtest without chasing one big numberAdvanced2 min read
A big headline number is usually the least useful part of a backtest. Ask four questions about what is underneath it before trusting any result.
For educational purposes only. This is not investment advice. Past performance does not guarantee future results.