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Anish replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 8 years, 1 month ago
In all price patterns buying or selling can take place when the breakout occurs. Buy or sell decision can be made based on whether the pattern indicates upward movement or downward movement.
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Anish replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 8 years, 1 month ago
While Dow theory helps to identify the overall trend of the market, price patterns help us to determine the price at which we can buy and sell shares.
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Anish 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 8 years, 1 month ago
The flag pattern is a continuation pattern which is formed sideways after a sharp price movement. The flag pattern looks like a rectangle. The rectangle is formed by 2 parallel trend lines that act as support and resistance for the price till the price breaks out. In general, the flag will not be perfectly flat, but will have its trend lines…[Read more]
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Anish 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 8 years, 1 month ago
Price falls to a low and subsequently rises. Then the price falls below the former low and again rises. Finally, the price falls once again, but not up to the second low and rises once more. The first and third lows are shoulders and the second low forms the head. The line connecting high after the first shoulder and high after the head is known…[Read more]
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Anish 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 8 years, 1 month ago
Price rises to a peak and subsequently declines. Then the price rises above the former peak and again declines. Finally, the price rises once again, but not up to the second peak and declines once more. The first and third peaks are shoulders and the second peak forms the head. The line connecting low after the first shoulder and low after the…[Read more]
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Anish 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 8 years, 1 month ago
The double top pattern is found at the peak of an upward trend and is a clear signal that the preceding upward trend is weakening. The first stage of this pattern is the creation of a new high during the upward trend. Once the high is reached, resistance is found from sellers and the price comes down to a level of support from buyers. In the…[Read more]
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Anish 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 8 years, 1 month ago
The double bottom pattern is found at the peak of a downward trend and is a clear signal that the preceding downward trend is weakening. The first stage of this pattern is the creation of a new low during the downward trend. Once the low is reached, support is found from buyers and the price goes up to a level of resistance from sellers. In the…[Read more]
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Anish 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 8 years, 1 month ago
The cup and handle pattern is preceded by an upward move, which stalls and sells off. The selloff is what forms the initial part of this pattern. After the selloff, the security will basically trade flat for an extended period of time with no clear trend. The next part of the pattern is the upward move back towards the peak of the preceding upward…[Read more]
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Anish 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 8 years, 1 month ago
Triangle pattern is a convergence of either two of the three trend lines – flat, ascending or descending – with price of the security moving between them. Triangle patterns are generally continuation patterns i.e. when the price breaks out from the pattern; it breaks out in the direction of the prior trend. Breakout should be supported by an inc…[Read more]
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Anish replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 8 years, 1 month ago
A price pattern/ price movement pattern is represented using a series of trend lines or curves. Technical analysis has long used price patterns to examine current movements and forecast future market movements. When a price pattern signals a change in trend direction, it is known as reversal pattern. A continuation pattern occurs when the trend…[Read more]
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Anish 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 8 years, 1 month ago
Dow theory can be used to find only the market trend. Finding the margin or risk is beyond the scope of the theory.
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Anish replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 8 years, 1 month ago
When demand is more than supply, the price will go up. At a certain level, this upward movement will reverse and this level is called resistance.
When supply is more than demand, the price will go down. At a certain level, this downward movement will reverse and this level is called support.
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Anish replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 8 years, 1 month ago
We can buy a stock if there is higher bottom followed by higher top, both accompanied with high volume of transactions.
We can sell a stock if there is lower top followed by lower bottom, both accompanied with high volume of transactions.
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Anish replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 8 years, 1 month ago
Dow theory helps us to understand whether the market is bullish or bearish by observing demand and supply.
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Anish 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, 1 month ago
Line charts are used for Dow theory. Look up period will be 2 years and trend forecasting will be 2 to 3 months.
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Anish replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 8 years, 1 month ago
Dow theory arrives at the market trend in the below methods:
Bullish – if the pattern is higher bottom and higher top
Bearish – if the pattern is lower bottom and lower top
Volume is important for this analysis
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Anish 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, 1 month ago
The major critics against Dow Theory is that it can not be used in short term, it can be used only in long term. It still remains on top because it is the first ever concept to describe demand and supply.
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Anish replied to the topic What is the average turnover in NSE only daily basis? Can any one manipulate the stock price? in the forum Understanding the Price Movement 8 years, 1 month ago
The average turnover in NSE is 3 lakhs crores per day. No one can manipulate or control the stock price.
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Anish replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 8 years, 1 month ago
Pros
• Fundamental analysis examines the health of a company.
• It is generally a good to invest in a company with sound financials.
Cons
• The problem with fundamental analysis is that you are still making predictions about the future that may not come true.
• Fundamental analysis can be a lengthy, complex process.
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Anish replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 8 years, 1 month ago
Pros:
Technical analysis clearly tells what is the price at which we can buy a share and how much return we can expect and how much risk we can take.
It is short term.
We can use visual patterns in this. Patterns repeat overtime. If a part of the pattern occurs, there is a heavy chance that the second part also will occur.
Cons:
It is…[Read more]
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