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A AHAMED SULAIMAN SHAMEEM replied to the topic What is Engulfing pattern? What are its conditions to qualify? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 5 months ago
Engulfing pattern is one of the candlestick patterns.
Conditions
- The latest body should cover the previous one
- Trading volume might increase during the engulfing day but not necessarily.
- Bullish engulfing appears after a price fall and bearish after a price hike.
Buy when the price goes above the highest of the two days during a bullish…[Read more]
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A AHAMED SULAIMAN SHAMEEM replied to the topic Who should use candle stick analysis? What is the role of volume in candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 5 months ago
Candlestick analysis should be used by weekly traders. Volume decides the trend reversal.
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A AHAMED SULAIMAN SHAMEEM replied to the topic What are HAMMER / hanging man? Why it is very popular when to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 5 months ago
Hammer is a candlestick pattern which appears after a significant price fall. Buy when the price goes above the highest price of the hammer day.
Hanging man is a candlestick pattern which appears after a significant price rally. Sell when the price goes below the lowest price of the hanging man day.
These are very popular because the profit…[Read more]
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A AHAMED SULAIMAN SHAMEEM replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 5 months ago
The general forecasting duration using candlestick analysis is 3 to 4 days.
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A AHAMED SULAIMAN SHAMEEM replied to the topic What is Candle stick analysis? Its evaluation and it real time application? in the forum The Simple Candlestick Analysis 7 years, 5 months ago
Candlestick Analysis is a simple and powerful method used for weekly trading. It is evolved from the Japanese. It is used to derive the short term trends in the market which lasts for 3 to 4 days.
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A AHAMED SULAIMAN SHAMEEM replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 5 months ago
Morning star is a DOJI which appears after a significant price fall, buy after the price goes above the DOJI day high on the next day.
Evening star is DOJI which appears after a significant price rally, sell after the price goes down below the DOJI day low on the next day.
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A AHAMED SULAIMAN SHAMEEM replied to the topic What Should be Entry price, Exit Price and Stop loss for Flag Pattern in the forum Price Patterns and its characteristics 7 years, 5 months ago
Entry price should be just after the breakout
Exit price should be just after the price movement has reversed its direction
Stop loss should be at the point where the breakout gap is filled
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A AHAMED SULAIMAN SHAMEEM replied to the topic What Should be Entry,Exit &Stop loss prices for triangle pattern – Shor position in the forum Stock market questions and answers 7 years, 5 months ago
Entry position should be just after the breakout
Stop loss price should be after the breakout gap is filled
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A AHAMED SULAIMAN SHAMEEM replied to the topic What is inverted Head and Shoulder? What are their conditions to determine the bullish trend? in the forum Price Patterns and its characteristics 7 years, 5 months ago
Inverted head and shoulder happens during accumulation of stocks.
Conditions to determine bullish trend
- Shoulder – Head – Shoulder pattern should be formed (which is inverted)
- Minimum three months to form the head and shoulder pattern
- High volume during the left shoulder
- Low volume during the right shoulder
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A AHAMED SULAIMAN SHAMEEM replied to the topic What is rounding bottom / Cup pattern? What are their conditions to determine the bullish trend? in the forum Price Patterns and its characteristics 7 years, 5 months ago
Cup pattern is an accumulation pattern formed when investors buy huge amounts of stock gradually for a long time.
Conditions for cup pattern
- Rounded bottom should be visible (cup shaped)
- The correlation of the stocks and the market movement should be low
- Lacklustre volume at the rounding bottom
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A AHAMED SULAIMAN SHAMEEM replied to the topic Which chart types are suitable for understanding Price patterns namely CUP, Flag in the forum Stock market questions and answers 7 years, 5 months ago
Line charts for
- Double Top/Bottom
- Head and Shoulder
- Cup
- Triangle
Candlestick charts for Flag.
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A AHAMED SULAIMAN SHAMEEM replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 5 months ago
Buying or selling should be done when the price crosses the neckline or breakout gap.
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A AHAMED SULAIMAN SHAMEEM replied to the topic What is Double TOP? What are their conditions to determine the bearish trend? in the forum Price Patterns and its characteristics 7 years, 5 months ago
Double top is a price pattern where there are two identical tops present.
Conditions for bearish trend :
- Duration between the identical top should be minimum one month
- Volume should be high at the second top or while crossing the neck line
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A AHAMED SULAIMAN SHAMEEM replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 5 months ago
Price patterns are various patterns of price movement which represent the direction as well as the characteristics of the market trend.
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A AHAMED SULAIMAN SHAMEEM replied to the topic What is triangle pattern? What are the conditions to qualify as perfect triangle? in the forum Price Patterns and its characteristics 7 years, 5 months ago
A triangle pattern is formed when the buyers and sellers are equally powerful for a certain period of time. It is identified by a five wave pattern after which a breakout happens on the either side.
Conditions to qualify as a perfect triangle :
- Five wave structure should be formed
- The tops and bottoms of the wave should converge by time (the…
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A AHAMED SULAIMAN SHAMEEM replied to the topic What type of Charts Used, Minimum look up period, Duration of Trend forecasting for Dow Theory? in the forum Dow Theory in Practice 7 years, 5 months ago
- Daily charts are used
- Minimum look up period is two years
- Duration of trend forecasting is usually two to three months
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A AHAMED SULAIMAN SHAMEEM replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 5 months ago
Resistance is the price level at which the price is prevented from going above for several times continuously.
Support is the price level at which the price is prevented from going downwards for several times continuously.
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A AHAMED SULAIMAN SHAMEEM replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years, 5 months ago
Buy when the current price goes higher than the target price.
Sell when the current price goes below the stop loss.
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A AHAMED SULAIMAN SHAMEEM replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 7 years, 5 months ago
- Open the price chart
- Identify the tops and bottoms
- Classify them as higher or lower
- Higher Bottom to Higher Top sequence with a good volume means the trend is bullish
- Lower top to Lower Bottom sequence with a good volume means the trend is bearish
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A AHAMED SULAIMAN SHAMEEM replied to the topic Since dow theory is only to find the trend, cant we keep target and stop loss? in the forum Stock market questions and answers 7 years, 5 months ago
Yes. We can set target and stop loss in Dow Theory by identifying the tops and bottoms and their sequence.
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