📈 Struggling to see the trend through all the market noise? The Zig Zag indicator filters out smaller price moves and connects key highs and lows with straight lines.

The indicator makes it easier to spot the main trend, gauge the size of price swings, draw support and resistance levels, and identify Elliott wave patterns.

🔍 However, Zig Zag doesn't predict price movements, and its latest line segment can change as new price data comes in.

Our new article explains how to read Zig Zag signals, what the indicator does well, where it falls short, and how to use it in your trading.

🔍 Different trading instruments can have different contract sizes, minimum volumes and overnight swap rates.

Check the contract specification before opening a trade to understand the trading conditions and calculate your position size correctly. You can find it for every instrument in LiteFinance terminals.

👇 Do you check the contract specification before trading a new instrument?

🧭 Is the market trending or moving sideways? Aroon helps you tell by tracking how many candles have passed since the highest high and lowest low within a set period.

Its two lines, Aroon Up and Aroon Down, range from 0 to 100%. Aroon Up staying at 100% for several candles signals a strong uptrend. Aroon Down at 100% points to a downtrend.

📊 Aroon doesn't measure the size of price moves or account for trading volume, so it works best alongside other tools.

Our new article explains how to read Aroon signals and use them in your trading.

⚠️ Adding to a losing position lowers your average entry price, but it also increases your total exposure and potential loss.

If the market keeps moving against you, your free margin will shrink even faster.

👇 Have you ever averaged down on a losing position?

🐈 After a sharp sell-off, green candles start appearing on the chart. A beginner rushes to buy, thinking the market has turned. Then the price falls to a new low.

This is a Dead Cat Bounce: a brief recovery during a strong downtrend. Prices can briefly rebound as traders buy to close short positions, try to catch the bottom, or react to news, even though the factors behind the broader decline haven't changed 📉

The rebound runs out of steam as buyers struggle to break through resistance or hold above it, and the downtrend resumes.

Our new article explains how to spot a Dead Cat Bounce and trade the pattern.

⚠️ Averaging down lowers your average entry price, but increases the size of a losing position and puts more pressure on your free margin.

Trying to fix one losing trade can lead to even bigger losses. It's better to define your risk in advance and stick to your trading plan instead of making emotional decisions.

👇 Have you ever added to a position while the price was moving against you?