What you should know before trading commodities
Commodities present a wide variety of trading opportunities, with platforms offering CFDs in energy markets such as crude oil and a variety of precious metals, from gold to palladium. The interaction of supply and demand is key to price discovery in the key commodity markets.
What you need to know about RSI
The Relative Strength Index (RSI) is a technical indicator that can help traders to identify when an asset is oversold or overbought.
Trading the new indices
Capital.com is pleased to be expanding its offering, adding six new equities indices on which you can take long or short positions. These include the China A50, the Italy 40, the Netherlands 25, the Poland 20, the Singapore Index and the Switzerland 20.
Understanding trading risk and applying risk management
It’s all too easy to disregard the importance of risk management when it comes to trading. But remember, even if you've been enjoying an excellent rate of success in percentage terms, you could all too easily lose a high proportion of your gains should just a couple of trades go wrong.
How to trade a triple-bottom reversal
A triple-bottom reversal is generally viewed as a bullish chart formation that can help identify buying opportunities. Typically, the triple bottom can detect a reversal of a bearish trend, highlighting opportunities to go long on an upwards price breakout.
How to trade a triple-top reversal
A triple-top reversal is generally viewed as a bearish chart formation that can help identify shorting opportunities. Typically, the triple top can uncover a reversal of a bullish trend, highlighting opportunities to go short on a breakout towards the downside.
How to trade a rounding bottom
A rounding bottom is a U-shaped pattern, just like the U shape found in the cup and handle chart pattern. Rounding bottoms tend to be observed towards the end of down price trends and can signal a price reversal to the upside. Many traders therefore use the pattern to better capture buying opportunities.
How to trade a cup and handle
The cup and handle pattern is one of the more bullish technical signals that traders commonly look for. As the name suggests, the pattern resembles a cup and a handle; it’s comprised of a U-shaped cup followed by a handle that is denoted by a modestly downwardly sloping trendline.
How to trade a double-top reversal
A double-top reversal is a bearish pattern that could signal the end of an uptrend. As the name suggests, a double-top pattern is characterised by two price peaks at around the same level.
How to trade a double-bottom reversal
A double-bottom reversal is a bullish pattern that could signal the end of a downtrend. As the name suggests, a double-bottom pattern is characterised by two price troughs at around the same level.
How to trade runaway and exhaustion price gaps
Runaway and exhaustion price gaps are often confused with one another, though being able to correctly differentiate between them can potentially lead to much more profitable trades.
How to trade a breakaway price gap
Breakaway price gaps often indicate that a given asset is in the throes of a sustained breakout from a trading range. Such gaps can be either a bullish or bearish signal, pointing to a change in investor sentiment, especially following significant news flow.
How to avoid common CFD trading mistakes
Avoiding some of the common pitfalls of trading could save you a lot of money in the long run and help to maximise your trading profits. It’s all too easy to make these basic trading mistakes. So, what are they, and how best to avert such mishaps?
How to trade a symmetrical triangle
A symmetrical triangle pattern, also referred to as a wedge, is a consolidation phase before the asset price either breaks out to the upside or downside.
How to trade a descending triangle
Traders use the descending triangle chart pattern to help capture shorting opportunities. While generally categorised as a bearish pattern, the descending triangle is typically a continuation formation. It can also be observed as a reversal pattern following a pronounced upward price trend.