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Doji

Doji

The Doji  is a single day pattern. It is a single candlestick where the open and close price is equal or very close to be the same. 
Doji indicates indecision in the market and is considered as a trend reversal pattern. 
Psychology of Doji pattern is 
When  a market is at an uptrend and a Doji appears then neither the bears nor the bulls have the ability to push prices in their direction.  This inability or indecision to move the markets in one direction will be seen as a trend change candlestick pattern.

For example, if Doji appears after an uptrend, it shows that bulls are unable to push prices much  higher  resulting in traders deciding to sell and pushing the asset  prices lower. This is a Doji  Top Reversal  Candlestick. 
If Doji appears after a downtrend, it shows that bears are unable to push prices much lower resulting in traders deciding to buy and pushing the prices of the asset higher. This is a Doji  Bottom  Reversal  Candlestick. 

The long legged doji is a doji with long upper and lower shadows. When a long legged doji has the open and close in the middle of the upper and lower shadow, it is referred to as a rickshaw man. Dragonfly Doji and Gravestone Doji are other types of Doji.

Doji Doji-1 Doji-2 Doji-3

Practice Doji – Beginner

Practice Doji – Intermediate

Practice Doji – Expert

 

 

Dragonfly Doji

Dragonfly Doji

The Dragonfly Doji is a single day pattern. It  has a ‘T’ shape. This occurs when the open and close are the same and there is a long lower shadow and no upper shadow. Having a very small upper shadow is OK.
Dragonfly Doji indicates indecision in the market and is considered as a possible trend reversal pattern. This is bullish candlestick

Psychology of Dragonfly Doji pattern is that market is on a downtrend and on the day when Dragonfly Doji appears bears are able to push prices downwards and then bulls manage to push prices back up. When prices are returned to the day open level the dragonfly doji is complete. It is very common for the lower shadow of the Dragonfly Doji to act as an area of support for future prices. 
Gravestone Doji is the opposite of Dragonfly Doji.

If dragonfly doji appears after a price rise then it can indicate potential price fall of an asset. Look at the next day’s candlestick for confirmation. 

Dragonfly Doji Dragonfly Doji - 3 Dragonfly Doji -1 Dragonfly Doji -2

Practice Dragonfly Doji – Beginner

Practice Dragonfly Doji – Intermediate

Practice Dragonfly Doji – Expert

Exchanges

Exchanges

An exchange is a physical location or virtual / electronic based which provides opportunities for traders for buying and selling financial assets like Shares, Forex, Indices, Commodities, Crypto currencies.

Shares -These are small units of  ownership in a company, such as Apple, Google, HSBC.
Indices -This indicates group of companies, represented as a single number, eg the FTSE 100, S&P 500, Nikkei 225.
Forex – These are global currencies, including the pound, dollar, euro.
Commodities – These are physical assets, raw materials and agricultural products, for example gold, oil, corn.
Crypto currency : A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.

Traders use online brokers instead of dealing directly with exchanges. 

Examples of brokers are eToro, ETrade.
Examples of exchanges are London Stock Exchange, New York Stock Exchange, NASDAQ, Coinbase, Binance.

Practice Exchanges – Beginner

 

Evening Star

Evening Star

The Evening Star is a three day pattern i.e it has three candlesticks. 

The first day is a long bullish candlestick after a preceding uptrend.  Second day is a little  bullish or bearish candlestick. It gaps up i.e opens at a higher price than the first day’s closing price. 
Third day is a large bearish candlestick and it closes into the first day’s bullish candlestick real body, ideally well down into it.

Psychology of the Evening Star pattern is that the market is on an uptrend  and on the first day of the pattern is a large bullish candlestick which reinforces the existing uptrend.
Next on the second day the candlestick opens higher with a gap up showing bulls in control but bears take control and manage to control the price push. This results in a small real body of the candlestick.
On the third day, bears take control and push prices down creating a long bearish candlestick and change in market sentiment to downtrend.

If the second day candlestick is a Doji then the pattern is called Evening Doji star. Evening star and Evening Doji Star are top reversal patterns.

Evening Star Evening Star-1 Evening Star-2 Evening Star-3

Practice Evening Star – Beginner

Practice Evening Star – Intermediate

 

Hanging man

Hanging man

The Hanging Man is a single day pattern.

It has a none or very little upper shadow and the real body is towards the top of the candlestick. Real body itself can be bullish or bearish. For real impact, the lower shadow of the hanging man should be at least two times the height of the real body. 

Hanging man occurs during an uptrend and can signal the top of that uptrend. Trader has to wait for confirmation of the hanging man’s impact with the  next trading day session close and make sure  it is below the hanging man’s real body. 

Hanging man is a bearish trend reversal pattern and occurs during an uptrend and could indicate that the price of the asset might start going down. 

Psychology of Hanging man pattern is that market is in a uptrend  and 

On the market day of hanging man open bears start selling resulting in price decline.During the day, bulls  take over control and push prices back towards the start of the day price. The closing price can be above or below the open, although the close should be near the open in order for the real body to remain small. 

Next trading day after the hanging man appears ,if the price opens lower on the price chart then  traders who bought at the opening or closing of the day might give up and sell resulting in lowering of the asset price. This confirms bears are in control. 

Whereas Hammer indicates potential price reversal to uptrend, Hanging man signals a potential price reversal to downtrend.

Hanging Man-2 Hanging Man -1

Practice Hanging Man- Beginner

Hammer

Hammer

The Hammer is a single day pattern. This occurs when the price of the asset being traded  goes down significantly lower than the opening price and then bounces back on the same day to close near the opening price.

Hammer Candlestick has a small real body and long lower shadow. Usually Lower shadow is at least twice the size of the real body. 

Hammer candlestick is considered as a bullish reversal pattern.

Psychology of Hammer pattern is that market is in a downtrend and 

On the market day  open bears start selling resulting in price decline.During the day, bulls  take over control and push prices back towards the start of the day price. The closing price can be above or below the open, although the close should be near the open in order for the real body to remain small. After hammer, traders have to get confirmation of  asset price movement upwards. 

Where Doji indicates price reversal or trend continuation, hammer signals a potential upside reversal.

 

 

Practice Hammer – Beginner

Practice Hammer – Intermediate

Gravestone Doji

Gravestone Doji

The Gravestone Doji is a single day pattern. This occurs when the open and close are at the bottom. Candlestick has a long upper shadow and no lower shadow.. It is OK for Gravestone Doji  to have a very small lower shadow. 

Gravestone Doji is considered as a possible top reversal pattern i.e bearish.

 

 

   

 

Psychology of Gravestone Doji pattern is that the market is on an uptrend and on the day when Gravestone Doji appears bulls  are able to push prices upwards. During the day, bears take over control and push prices back to the start of the day price. It is very common for the upper  shadow of the Gravestone  Doji to act as an area of support for future prices. 

Gravestone Doji is the opposite of Dragonfly Doji.

The longer the upper shadow and higher the price level of the Gravestone doji indicates strong bearishness. Gravestone Doji Gravestone Doji-1 Gravestone Doji-2 Gravestone Doji-3

 

 

Practice Gravestone Doji – Beginner

Top 10 Free Apps for Daily Self-Learning

Top 10 Free Apps for Daily Self-Learning

 

It is what we know already that often prevents us from learning –  Claude Bernard

 

 

 

Here are Top 10 free apps and websites our team uses on daily basis to learn something new and improve everyday! 

Favourite Apps for Daily self-learning

 

 

 

 

 

 

 

1: Duolingo  App for daily free language learning education for free.

2: Youtube –App for video based learning from creators all around the world. 

3: Podcast App –  App to listen to audio content from creators all around the world. 

4: freeCodeCamp– App to help people learn to code for free. 

5: Edx – High quality education from top universities in the world. 

 6Coursera – High quality education from top universities in the world. 

7: Goodreads – An app to find your next favourite book.

8: Wikipedia – App which is a free online encyclopedia created and edited by volunteers around the world. 

9: Lumosity – App with games to improve memory, attention, flexibility, problem solving, and speed of processing. high resolution images and videos of artworks and cultural artefacts from organisations around the world. 

10:  Quora – App to ask questions to gain and share knowledge.

Lifelong Learning!

Lifelong Learning!

 

Lifelong Learning is a continuous pursuit for acquiring knowledge for either personal or professional reasons  –  Commission of the European Communities

The Delors Report stressed on the importance of learning  over the course of a lifetime and also highlighted four pillars of learning. 
1 Learning to know.
2 Learning to do.
3 Learning to be.
4 Learning to live together

So how to be a Lifelong learner? 

FalconFunda team have put together a step by step approach and important actions you can take today  to begin your journey as a lifelong learner.

Step 1 : Identify your interests & passions and make a list.
Action
:Use the
Princeton Review Career Quiz to identify your personal interests.

Step 2 : Identify your Learning goals for each of your interests / passions. Start with one interest /passion.
Action :  Use a SMART Objective framework to set yourself a learning goal. 

Step 3 : Find your learning style using VARK.
Action :Use Vark Questionnaire as a tool to discover your learning style.

Step 4 : Find online communities  to connect with people who have similar interest  / passion.
Action : Do Google search community + <name of your interest > keyword and look at the top 3 results. 

Step 5 : Find a website / app to Learn Fundamentals concepts of your interest / passion.
Action : Research and identify self-learning resources / tools. Choose one learning resource ( i.e Website or App ) and try to learn the fundamental / basic concepts of  your interest / passion.  

Step 6:  Develop Growth Mindset.
Action: Use the skills at every given opportunity, Be  Curious, Consume latest information in the area of interest on daily/ weekly basis through blogs, books / podcasts, news. Challenge your assumptions!

Step 7 : Maintain a Learning Logand keep updating on a regular basis – ideally daily / weekly basis.
Action :  Start capturing information into a document( Google Doc/ iPhone Notes/Microsoft Word ) on your phone or compute.

With FalconFunda.com you can  self-learn fundamental concepts of investing / trading in financial market(s).

Learn with FalconFunda.com

 

So many books, so little time – Frank Zappa

So many books, so little time – Frank Zappa

 

 

‘Employ your time in improving yourself by other mens writing so that you shall gain easily by what others have laboured hard for’ – Socrates.

One of the common themes  in the path from novice to master, amateur to professional, inexperienced to expert is learning.

Below are some of the favourite books of  FalconFunda team members. These books have helped us to get inspired, learn more effectively and make learning a fundamental part of our nature!

 

1 Make It Stick: The Science of Successful Learning   – Peter C. Brown Henry L. Roediger III Mark A. McDaniel 

 

 

 2 The 5 Elements of Effective Thinking  –  by Edward B. Burger , Michael Starbird

 

3 Think Again: The Power of Knowing What You Don’t Know by Adam Grant

 

 

4 The 80/20 Principle: The Secret to Achieving More with Less   by  Richard Koch 

 

5 Grit : The Power of Passion and Perseverance by  Duckworth, Angela 

 

 6 The Tipping Point: How Little Things Can Make a Big Difference  by Malcolm Gladwell 

 

 

 

7 Tiny Habits: The Small Changes That Change Everything by    B.J. Fogg 

 

8 Smarter Faster Better: The Secrets of Being Productive in Life and Business by Charles Duhigg 

 

9 Black Box Thinking: Why Some People Never Learn from Their Mistakes – But Some Do   by Syed, Matthew

 

 

 

 

10 Start with Why: How Great Leaders Inspire Everyone to Take Action  – Simon Sinek 

 

 

 

 

FalconFunda – Starting with Why!

FalconFunda – Starting with Why!

We are on a mission to identify and organise fundamental concepts of modern finance to help traders and investors easily learn, remember & discover market opportunities in a fastest way possible.

FalconFunda Brand Story

 

 

Behind the brand!

‘There is no end to education. It is not that you read a book, pass an examination, and finish with education. The whole of life, from the moment you are born to the moment you die, is a process of learning’ – Jiddu Krishnamurti 

Ultimately, education in its real sense is the pursuit of truth. It is an endless journey through knowledge and enlightenment. A. P. J. Abdul Kalam

Live as if you were to die tomorrow. Learn as if you were to live forever –  Mahatma Gandhi

You can practice shooting eight hours a day, but if your technique is wrong, then all you become is very good at shooting the wrong way. Get the fundamentals down and the level of everything you do will rise  – Michael Jordan

Success is all about consistency around the fundamentals  –  Robin Sharma

All compromise is based on give and take, but there can be no give and take on fundamentals. Any compromise on mere fundamentals is a surrender. For it is all give and no take  – Mahatma Gandhi

Fundamental preparation is always effective. Work on those parts of your game that are fundamentally weak  –  Kareem Abdul-Jabbar

Success is neither magical nor mysterious. Success is the natural consequence of consistently applying the basic fundamentals – Jim Rohn

First master the fundamentals  – Larry Bird

“The best thing about the future is that it comes one day at a time.”  ― Abraham Lincoln

In a world of constant change, the fundamentals are more important than ever – James C. Collins

Learning never exhausts the mind – Leonardo da Vinci

We believe in intentional  bitesize everyday skill learning –  We are Falcons!

Charts

Charts

In order to study how the price of a traded security moves, a trader needs some sort of way to look at its historical and current price behavior.A  price chart is usually a preferred first tool that most of the traders use for technical analysis 
A chart is simply a visual representation of a traded security’s price over a set period of time.

On the chart, the y-axis (vertical axis) represents the price scale and the x-axis(horizontal axis) represents the time scale. Prices are plotted from left to right across the x-axis.

 

A chart aggregates every buy and sell transaction of that financial instrument (in our case, currency pairs) at any given moment. A price chart depicts changes in supply and demand.

Below are the some of the most popular types of Price Charts

  1. Line chart 
  2. Bar chart
  3. Candlestick chartCharts&Type -Content Image

Charts are useful  because they make it easier for us to present securities being traded in a visual and organized manner.
Charts blend all activity from the millions of market participants of all types and it doesn’t matter  whether they’re humans or machines!

Practice Charts & Types – Beginner

Practice Charts & Types – Intermediate