The Bullish  Harami  pattern is a two day pattern. It is made with one bullish candlesticks and a bearish candlestick. This is a potential trend reversal pattern and it is not as significant as a engulfing pattern or hammer. 
First day a  large bearish candlestick.
Second day is a small bullish  candlestick  whose real body is between the real body of the first day’s large candlestick real body.

Psychology of this pattern is that the market  is in downtrend  and a long bearish candlestick appears, that likely makes a new low.  It is clear that the bears are in charge. However, the second day gaps higher instead of heading lower .  During the second day, the price moves slightly up and down, suggesting that neither the bears nor bulls are in charge. This indecision of the harami pattern suggests that prices could move sideways or could reverse upward because the bears’ downward move has been exhausted.

The harami pattern is not as significant a reversal pattern as an engulfing pattern or hammer.

If the second day of the Bullish  Harami pattern is a doji rather than a small bullish pattern then the pattern is usually called Bullish Harami Cross Candlestick pattern. The Harami Cross Candlestick pattern is a major reversal signal. 

A bullish Harami got its name because it resembles the appearance of a pregnant woman. “Harami” is the Japanese word for pregnant.

Bullish Harami – Beginner

Bullish Harami – Intermediate

Bullish Harami – Expert

The Dark Cloud Cover is a two day pattern. It is made with one large bullish candlesticks and a large bearish candlestick. This is a trend reversal pattern which occurs on top of an uptrend. 

Dark Cloud Cover is also called Bearish Piercing Line. 

First day is a large bullish candlestick.

Second day is a large bearish  candlestick. It opens above the first day’s high and closes within the price range of the 1st days’ real body. Strictly speaking the bearishness should penetrate more than 50% below the 1st day’s bullish real body. 

Psychology of Dark Cloud Cover pattern is that a market is an uptrend and a large bullish candle appears on day 1 making a new high. On Day 2, the market starts with another new high and then the sell off begins resulting in elimination of over half of the gains made previous day.  Basically the new high got rejected and bears are gaining control. 

Dark Cloud Cover pattern can be dismissed if candlestick after the day2  finishes above the high of the dark cloud cover pattern. 

Practice Dark Cloud Cover – Beginner

Practice Dark Cloud Cover – Intermediate

Practice Dark Cloud Cover – Expert

Support and Resistance is a technical analysis concept / strategy used by traders to refer to the price levels on the charts for a security.

On a chart, resistance is the area around the highest point the price of a security reaches before it is pulled back i.e prices start going down. Resistance levels indicate that there are / will be surplus of sellers for that particular security.

On a chart for a security, support is the lowest point reached before it continues to go up again. 

Support  levels indicate that there are / will be surplus of buyers for the traded asset.

Practice Support and Resistance – Beginner

Practice Support and Resistance – Advanced

Practice Support and Resistance – Expert

Market Sentiment is the overall consensus about a particular security or market in general. This can be one of Bullish, Bearish or Correction. 

A bullish sentiment describes a market condition when prices are on the rise or expected to grow. The phrase usually refers to the stock market but can also be applied to any security  in markets like  asset classes, bonds, commodities, or real estate.

While there’s no hard and fast rule to designate a bull market, typically, a market is considered a bull when stock prices rise by 20% or more after a 20% decline and before another 20% drop. 

Bull markets are long-term trends and usually last several months or years.

A bearish market sentiment is  one that is in a prolonged period of decline in security prices. Typically, a market is considered bearish when prices of security falls 20% or more from their 52-week high.

A correction market sentiment is a decline of 10% or more in the price of a security from its most recent peak. Corrections can happen to individual assets, like an individual stock or bond, or to an index measuring a group of assets.  Corrections can last anywhere from days to months, or even longer.

While damaging in the short term, a correction can be healthy , adjusting overvalued asset prices and providing buying opportunities. 

Market Sentiment – Beginner

   Market Sentiment – Intermediate

Transaction costs are  incurred by a trader during buying and selling  a security. These costs are on top of the price of the security that is being bought or sold.Depending on the type of the security, transaction costs can include broker/ commission fee, bid-offer spread, market impact cost, currency exchange fee, stamp duty and other types of taxes. 

A trader should take into account below additional costs before getting into a buy/ sell trade.

1 Commission or Brokerage Fees

A commission or brokerage fee is the fee paid by a trader to the broker for buying and selling securities  on his behalf. It is calculated as a percentage of the total transaction value. 
Commission usually covers expenses for the broker such as transaction fees paid to the stock exchange, order-handling fees. This varies from broker to broker.  Some brokers offer zero commission traders. 

2 Bid-Ask Spread

The bid-offer spread is the difference between the prices a trader is ready to buy a security  and the price at which the broker  is ready to sell that security.
The size of the spread reflects the liquidity position of the stock, as less liquid stocks will tend to have high bid-ask spread. Therefore, under competitive conditions the bid-ask spread measures the cost of making a trade without delay.
Typical bid-offer spreads in large liquidity stocks are about 0.5-1.0%.

Market Impact:

When people buy and sell a security, it adds new information to the market which has an impact on the market price of security. If all other factors remain the same, buying stocks will increase their market price. This is basically market impact. 
So, in case of a very large trade, where a security is  illiquid, the price at which the trade is executed will be higher than the indicated price. 

Practice Transaction Costs – Beginner

Practice Transaction Costs – Intermediate

Volume is the total quantity of a particular security traded during trading hours on a given day or per transaction.

For a given security, higher day trading volumes are considered more positive than the lower trading volumes because they mean more liquidity and better order execution.

Volume tends to be highest near the market day open, market day close and also on the start of the week and last day of the week. Volume of a trade ( Trade Volume)  is the measurement of the market’s activity and liquidity during a set period of time. This is measured on stocks, bonds, options, contracts, future contracts and all types of commodities. 

Traders use volume levels to decide on timing of their  transaction. When the price of a security is changing fast then it means that Trading Volume is usually higher. 

Candlestick charts primarily highlight price movements of the security. Volume indicators keep track of all the transactions  in any given period.

Trades usually apply volume indicators on the price chart  of the security to analyze patterns. On the candlestick chart, volume indicators are usually displayed at the bottom as a histogram. Each bar shows the total volume traded for a given time  period with a number.

Volume – Example Price Chart

Practice Volume – Beginner

Practice Volume – Intermediate

Practice Volume – Expert

Practice Orders – Beginner

Practice Orders – Intermediate

Practice Orders – Advanced

When you place a trade, you are either buying or selling a security in the market. Buyers who are buying believe  the security value will likely rise. Sellers ( or Bears ) generally think its value is going to fall. 

Buyers and sellers affect the supply and demand of the security and therefore its price. A long position in trading is when you buy a security and short position is when you sell it. When buyers outweigh demand increase and price of the asset rises. When sellers outweigh buyers, supply increases and demand and price drops.

Traders / Investors typically will use a broker account to purchase securities. 

Buying-And-Selling Vs Security Price Impact

Practice Buying and Selling – Beginner

In trading, price is the most recent price at which a particular security was bought or sold.The price of the security is mainly determined by the supply and also demand.

Traders, Investors and Dealers interact in the market to determine the supply and demand which in turn indicates the market price of the security. So the price of the security is constantly changing  as the supply and demand quantities change. 

Bid represents Buying and it is the highest price at which a buyer  trader is willing to pay for a security.
Offer ( or Ask ) represents Selling and it   is the highest price which a seller trader  is willing to accept for a security.

Trading  transaction of a security occurs when the Bid and Offers coincides. 
Bid-ask (or Bid-offer spread ) is the difference between the bid price for the security and the ask price.
Exchanges provide a platform for traders to submit Bids and Offers through Brokers ( called market makers).

Practice Market Price – Beginner

Security is a tradable financial asset that holds some type of monetary value.
Securities are broadly categorized into:

• Debt securities (Example :  banknotes, bonds, and debentures
• Equity securities (Example  stocks)
• Derivatives (Example : , forwards, futures, options, and swaps).

The company or the entity issuing the security is called the Issuer. Every country has its own regulatory structure which determines security. 

Cryptocurrencies are currently not categorised as securities. 

Debt Security :
A debt security represents borrowed money that must be repaid.  The issued security ( usually a paper contract – examples:  corporate bonds, certificates of deposit, collateralized securities   ) has details like the size of the loan, interest rate, and maturity or renewal date and other stipulated contractual rights. 
Investors ( rather than traders ) usually buy these debt securities and they will be entitled to regular payment of interest and repayment of principle (regardless of the issuer’s performance)

These debt securities are typically issued for a fixed term, at the end of which they can be redeemed by the issuer.

Equity Security:
An equity security is basically shares  in a company, trust or partnership. The holder of an equity is called a shareholder, owning a share, or fractional part of the issuer. 

Derivatives :   
A derivative is a contract that derives its value from the performance of an underlying entity. This contract between two parties defines all the  conditions ( especially the dates, resulting values and definitions of the underlying variables, the parties’ contractual obligations   ) under which the payment will be made between the parties.

Practice Securities – Beginner

A  broker is an individual or a company who facilitates financial transaction execution on behalf of a trader. They basically act as sales agents. 

There are mainly four types of broker in financial trading

Stock broker : Stock broker manages and executes the buying and selling of securities for the traders.
Forex broker :Forex brokers buy and sell  currencies for the traders.
Full-service broker :Full-service brokers are financial advisers and offer more services for traders / investors  ( on top of buying and selling ). Example tax advice, research, financial  planning. 
Discount broker : Discount brokers offer lower commission for executing the trades for the traders. The more trades you execute with them, the lower the cost.

Practice Brokers – Beginner