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Amith Nandakumar replied to the topic How to name a GAP? What are Four Types of GAP? in the forum GAP Analysis and its interpretations 7 years, 2 months ago
Gap determines the strength of the trend. The four types are
Area gap : The Gap which occurs in the non trending area. The gap is most likely to get filled.
Breakout gap : Gap occurring when moving out of the non trending area. This also symbolizes the trend is bullish. There should be good amount of volume.
Run away gap :The gap formed…[Read more]
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Amith Nandakumar replied to the topic How to name a GAP? What are Four Types of GAP? in the forum GAP Analysis and its interpretations 7 years, 2 months ago
Gap determines the strength of the trend. The four types are
Area gap : The Gap which occurs in the non trending area. The gap is most likely to get filled.
Breakout gap : Gap occurring when moving out of the non trending area. This also symbolizes the trend is bullish. There should be good amount of volume.
Run away gap :The gap formed…[Read more]
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Amith Nandakumar 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, 2 months ago
It indicates reversal pattern.
After a bearish trend there is a candle which completely engulfs the previous day and the day should be positive.
Buying should happen when the trend raises above the highest point of the engulfing candle.
Stop loss should be the lowest point of the engulfing pattern.
Sell when the risk calculated is expected in return
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Amith Nandakumar 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, 2 months ago
Both hammer and hanging man indicates trend reversal.
Hammer occurs after a bearish trend and the day when hammer occurs it should be a positive day. The tail should be twice that of the body size and the highest point should very near to the closing point.
Hanging man occurs after a bullish trend and that day should be negative. The length of…[Read more]
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Amith Nandakumar replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 7 years, 2 months ago
DOJI is a japanese word. It indicates neutral trend where opening and closing is at the same point.
It indicates trend reversal with high volume.
Long position held when there is a morning star.
Short position held when there is a evening star.
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Amith Nandakumar 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, 2 months ago
It is a strong powerful tool for weekly traders.
It indicates trend reversal.
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Amith Nandakumar replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 2 months ago
Morning star : DOJI after a bearish trend. Long position held when the trend crosses the highest point of the morning star. Sell when twice the risk calculated is achieved.
Evening star : DOJI after a bullish trend. Short position held when the price decreases below the lowest point of the evening…[Read more]
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Amith Nandakumar replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 2 months ago
Forecasting period is generally less than a week.
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Amith Nandakumar 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, 2 months ago
Candle stick analysis is best and powerful tool for weekly traders. It indicates reversal pattern.
Volume indicates the trend reversal.
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Amith Nandakumar 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, 2 months ago
It is a reversal pattern. Present day candle should cover the previous days candle’s low and should have crossed 50% of the previous day candle.
The trend should be positive.
Buy when it crosses the highest point of the previous day candle.
Stop loss must be the lowest point of that candle which covered 50% of the previous candle.
Sell when…[Read more]
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Amith Nandakumar 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, 2 months ago
Entry price : the price when the flag exceeds the rectangular formed area.
Stop loss : The price at the bottom of the flag.
Exit price : The same amount calculated as the stop loss.
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Amith Nandakumar replied to the topic What Should be Entry price, Exit Price and Stop loss for Head & Shoulders in the forum Price Patterns and its characteristics 7 years, 2 months ago
Entry price : Short position created when the trend decreases below the neck point.
Stop loss : The top of the right shoulder.
Exit price : It is the target price which is the same as what risk we have taken.
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Amith Nandakumar 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, 2 months ago
Cup pattern is an accumulation process.
It takes long period of time to form.
The volume must be low at the rounding bottom.
Bullish trend can be determined if the trend exceeds the previous high top.
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Amith Nandakumar replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 2 months ago
Dow theory good for identifying the trend of the market.
Price pattern identifies the characteristics of the trend.
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Amith Nandakumar replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 2 months ago
Long or Short position can be held with respect to the trend moving above or below the neck point and also it should be backed with good amount of volume.
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Amith Nandakumar 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, 2 months ago
Two equivalent top has to be spotted.
The duration between the two top must be minimum 1 month.
Large volume must be spotted at the second top.
Short position can be held if the price decreases below the neck line.
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Amith Nandakumar 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, 2 months ago
Two equivalent bottom has to be spotted.
The duration between the two bottom must be minimum 1 month.
Large volume must be spotted at the second bottom.
Long position can be held if the price increases above the neck line.
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Amith Nandakumar 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, 2 months ago
Two equivalent bottom has to be spotted.
The duration between the two bottom must be minimum 1 month.
Large volume must be spotted at the second bottom.
Long position can be held if the price increases above the neck line.
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Amith Nandakumar replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 2 months ago
Price pattern helps the analyst to determine the characteristics of the trend.
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Amith Nandakumar 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, 2 months ago
Candle stick charts prefered for flag analysis.
A steep pole of slope 70 – 80 should be formed.
Then there should be a sideway or a rectangular pattern formed within a period of 3- 7 days.
There should be no volume during the rectangular period indicating lack of suppliers.
The breakout should always happen in the same side of the steep pole.
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