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Ananthakrishnan 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, 1 month ago
In candlestick view, when the second candle covers the first candle of about 50-70% then the pattern is called as a piercing pattern.
Bullish Piercing Pattern:
1.The prior trend should be a downtrend.
2.The first candle should be red in colour and the second candle should be green in colour.
3.The second candle should cover atleast 50-70% of…[Read more]
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Ananthakrishnan 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, 1 month ago
Engulfing pattern is a trend reversal pattern in which the second candlestick completely engulfs the first candlestick.
Bullish Engulfing Pattern:
1.The prior trend should be a downtrend.
2.The first candle should be red in colour while the second candle should be green in colour.
3.The body of the second candle should completely engulf the…[Read more]
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Ananthakrishnan replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 1 month ago
the general forecasting duration can be 3 to 4 days or a maximum of 1 week
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Ananthakrishnan 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, 1 month ago
Candlestick charts are an effective way of visualizing price movements. There are two basic candlesticks:
Bullish Candle: When the close is higher than the open (usually green or white)
Bearish Candle: When the close is lower than the open (usually red or black)
Better for  short term buy/sell decisions.
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Ananthakrishnan 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, 1 month ago
Generally useful for short term traders. Volume in candlestick analysis is useful in identifying any trend reversal.
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Ananthakrishnan 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, 1 month ago
Head and shoulder is the distribution pattern. It means some stronger hand is liquidating all of their shares in the market over a short period of time i.e. around 3 months of time.
Head should be recent top
Left shoulder volume should be high
Right shoulder volume should be low
Short position can be considered when price breaks the neck line
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Ananthakrishnan 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, 1 month ago
1. Two equivalent Tops.
2. Volume at the 2nd top or its low should be high.
3. Duration between the first top and the 2nd top should be min 20 days.
4. Short position can be considered after the 2nd top low is higher than it’s previous low.
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Ananthakrishnan 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, 1 month ago
1. Two equivalent bottom.
2. Volume at the 2nd bottom or it’s high should be higher.
3. Duration between the first bottom and 2nd bottom should be min 20 days.
4. Long position can be considered when the 2nd bottom high goes than the previous high.
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Ananthakrishnan 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, 1 month ago
Inverted head and shoulder is to determine a trend reversal from Bearish to Bullish.
Conditions :
Duration – minimum 3 months.
Inverted head must be the lowest price reached and should be steep.
The volume is low on the left shoulder and high on the right shoulder.
When the prices cross the neckline, a bullish trend can be expected.
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Ananthakrishnan 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, 1 month ago
Left shoulder – In the left shoulder, price falls and rises to the neckline to form a V shape.
Head – In the head, price falls and rises to the neckline to form a bigger V shape bottom.
Right shoulder – The right shoulder is similar to the left shoulder.
Entry – When the price crosses the R.shoulder Bottom.
Exit – When the shift in price hap…[Read more]
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Ananthakrishnan replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 1 month ago
Price patterns are basically used to analyse the behaviour and characteristics of the stocks. Below are the different type of price patterns –
Double top, Double bottom, Flag, Triangle, Head & Shoulder, Cup
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Ananthakrishnan replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 1 month ago
Dow theory helps us to understand the forces of demand and supply over a long period. It gives us an indication what should be our risk and at what point should we exit. Where as price pattern studies data for past few days gives more tools and tells us when to invest and when to exit with required return and risk with the time horizon of max…[Read more]
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Ananthakrishnan replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 1 month ago
Buy:
double bottom,when it crosses the previous top
cup pattern
flag pattern ,when positive pole flag give positive breakout
triangle pattern,when triangle breakouts in uptrend
inverted head and shoulder
Sell:
double top,when it crosses the previous bottomhead and shoulder
triangle pattern,when it breakout in downtrend
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Ananthakrishnan 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, 1 month ago
Flag is a price pattern using open candle stick charts.
The leading pole must be steep 70-80 degrees.The rectangular region should stay for min 3 – 7 days.The volume should be low during the rectangular region.Volume should be high when breaking out.Flag should not droop
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Ananthakrishnan 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, 1 month ago
Find the steeper pole, then rectangular flag pattern which reveals the consolidation ,next once again it should move steeper,with a high volume when t
he break out takes place ,this is the Entry, and the stop loss with the LB ,and the target will be double the LB. The flag may move for 4-7 days for
consolidation.
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Ananthakrishnan 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, 1 month ago
Cup pattern is an accumulation pattern through a few months or even years.
1. The pattern should be visible as a round bottomed cup.
2. Must take months or even years to form.
3. The volume should be low at the round bottom.
4. The market co-relation should be minimum.
5. can assume long position when the price starts to go up.
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Ananthakrishnan 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, 1 month ago
Triangel Pattern- Indicates trend consolidation
The pole of is not as steep as Flag pattern
Takes minimum 45 days to form.
need to identify the 5 waves . where A,C,E are bottom of waves and B,D are tops of waves,  where each bottom has to be higher than previous and each top  has to lower than previous to converge as a triangle at extended p…[Read more]
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Ananthakrishnan and Divya S are now friends 7 years, 2 months ago
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Ananthakrishnan and Maruti Patil are now friends 7 years, 2 months ago
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Ananthakrishnan replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 2 months ago
Support – where buyers dominate (demand is more)
Resistance where sellers dominate(Supply is more)
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