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Alagu Meenakshi 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, 12 months ago
Engulfing is when the current candlestick(bullish) should cover the previous candlestick (bearish).
There should be recent falls in prices.
Stock should be bought at a point higher than the current high value.
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Alagu Meenakshi replied to the topic What is piercing pattern? What are its conditions to qualify? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 12 months ago
In piercing pattern, the second candlestick should cover the previous day’s low. The current candlestick should cover atleast 50% of the previous candlestick.
Buy when price goes higher then the highest of both candlesticks.
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Alagu Meenakshi replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 12 months ago
A bullish trend in DOJI is called morning star and a bearish trend in DOJI is called an evening star.
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Alagu Meenakshi 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, 12 months ago
When buyers and sellers are moving forward with the same degree, a triangle pattern is formed.
Duration should be minimum 1.5 months.
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Alagu Meenakshi replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 12 months ago
Dow theory analyses demand and supply for a long period.
Price patterns analyse the price movements for a short period.
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Alagu Meenakshi 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, 12 months ago
In rounding bottom, there is gradual accumulation of stock.
Duration is minimum 6 months.
The volume is expected to be low.
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Alagu Meenakshi replied to the topic What is Double BOTTOM? What are their conditions to determine the bullish trend? in the forum Price Patterns and its characteristics 7 years, 12 months ago
Double bottom is where there are 2 bottoms.
Volume should be high at the second bottom.
Duration should be 20 days.
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Alagu Meenakshi replied to the topic What is Head and Shoulder? What are their conditions to determine the bearish trend? in the forum Price Patterns and its characteristics 7 years, 12 months ago
Head and shoulder is a pattern where there is low volume in the right shoulder and high volume in the left shoulder. The head is where the price is high. Duration is 3 months.
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Alagu Meenakshi replied to the topic What is FLAG pattern? What are the conditions to qualify as perfect FLAG? in the forum Price Patterns and its characteristics 7 years, 12 months ago
Flag movement is a sideway movement in the trend.
Conditions –
Before the flag there should be a steep trend.
There should be high volume.
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Alagu Meenakshi 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, 12 months ago
Inverted head and shoulder is the opposite of head and shoulder.
Conditions –
Durations is around 3 months.
Volume should be high at the left shoulder.
Volume at right shoulder should be low.
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Alagu Meenakshi replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 12 months ago
Buy when the demand becomes stronger than the supply.
Sell when the supply becomes stronger than demand.
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Alagu Meenakshi 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, 12 months ago
Double top is two equivalent tops.
Conditions –
Volume should be high at the second top.
Duration between the two tops should be 20 days.
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Alagu Meenakshi replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 8 years ago
Dow theory is a type of technical analysis which is useful in determining when to create what kind of position for long term trades. It studies the demand and supply using price and volume.
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Alagu Meenakshi replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 8 years ago
Look at line charts for a period of 2 years. Identity major tops and bottoms. Identify a higher bottom – higher top or lower top – lower bottom sequence with high volume and accordingly create a long or short position.
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Alagu Meenakshi replied to the topic What are the major critics against Dow Theory? How come it remains on top of any analysis? in the forum Dow Theory in Practice 8 years ago
It has to be analysed for a long period of time.
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Alagu Meenakshi 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 8 years ago
Line charts for over a period of 2 years is analysed for Dow theory.
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Alagu Meenakshi replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 8 years ago
Buy when demand is greater than supply.
Sell when supply is greater than demand.
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Alagu Meenakshi replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 8 years ago
People avoid penny stocks because it is traded at low prices and doesn’t involve a lot of profit.
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Alagu Meenakshi replied to the topic What are different types of charts? in the forum Understanding the Price Movement 8 years ago
Line charts
Bar charts
Candlesticks
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Alagu Meenakshi replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 8 years ago
PROS –
The input is available to everyone.
CONS –
It doesn’t give any information about the company.
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