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Aravindan replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 8 years, 6 months ago
Few days to a week
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Aravindan 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, 6 months ago
Head and shoulder is a price pattern that occurs after a significant rally. This is a reversal pattern.
The head should be the highest among the recent price action
Volume should be high in the left shoulder and low on the right shoulder
The duration for the complete pattern should be at least 1 month
Short position can be considered when the…[Read more]
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Aravindan replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 8 years, 6 months ago
Buy or sell should happen during breakout with high volume.
Exit should happen when the price breaches either the high or low which is based on the pattern
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Aravindan 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, 6 months ago
The head and shoulders bottom is the inverse of the head and shoulders
They occur after a downtrend and usually mark a major trend reversal when complete
The head and shoulders bottom forms after a downtrend,
Volume plays a very important role in head and shoulders bottom
Volume levels during the second half of the pattern are more important…[Read more]
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Aravindan 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, 6 months ago
The head and shoulders bottom is the inverse of the <span style=”line-height: 1.5;”>head and shoulders</span><span style=”line-height: 1.5;”> t</span><span style=”line-height: 1.5;”>op.</span>
They occur after a downtrend and usually mark a major trend reversal when complete
The head and shoulders bottom forms after a downtrend,
Volume plays a…[Read more]
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Aravindan 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, 6 months ago
A double top is formed when the following happens
– Two equivalent tops with at least 20 days of duration between them
– High volume at the second top or at the breakout after the second top
Short posistion can be considered below the low point between the two tops
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Aravindan replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 8 years, 6 months ago
Price patterns are formations such as <span style=”color: #777777; font-family: ‘Open Sans’; font-size: 13px; line-height: 20px;”>Head and Shoulder, Double top and bottom, Cup pattern, Flag pattern, Triangle pattern etc…which are used to identify short term price movements in a overall positive or negative trend</span>
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Aravindan replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 8 years, 6 months ago
Dow Theory can identify the overall trend but it cannot identify the strength of the trend.
Price Patterns though based on the Dow theory, can identify the characteristics of the price movement and the Entry/Exit positions.
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Aravindan 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, 6 months ago
Cup pattern is formed when the following happens
– Cup shaped formation indicating accumulation over a long period of time
– They are considered powerful
– The volume is low
– The stock generally seems to be detached with the overall market trend
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Aravindan 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, 6 months ago
Triangle pattern is formed when the following happens
– Formation of 5-wave corrective pattern in the form a traingle with a minimum duration of 1.5 months
– Triangle breakout expected around 70% zone.
– Volume required to confirm breakout
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Aravindan 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, 6 months ago
A flag pattern is formed when the following happens
– There is a steeper pole which formed with in 2 or 3 days
– Rectangular shaped sideways price movement with in 4 to 7 days.
– Incresed volume while giving breakout
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Aravindan 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, 6 months ago
A double bottom is formed when the following happens
– Two equivalent bottoms with at least 20 days of duration between them
– High volume at the second bottom or at the breakout after the second bottom
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Aravindan 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, 6 months ago
The theory does not recognize a trend reversal until long after it has occurred and has been confirmed. Also it will not tell the strength of the trend.
But still Dow theory is capable of identifying major movements of the stock market
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Aravindan 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, 6 months ago
Chart – Line
Lookup period – Minimum 2 year
Trend forecasting – 1 – 3 months
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Aravindan replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 8 years, 6 months ago
Dow theory is the first one which is based on the market and not on the company.
It says the price depends on the demand and supply. The bullish and bearish trends are identified based on the formation of higher/lower tops/bottoms with volume.
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Aravindan replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 8 years, 6 months ago
When a sequence of higher bottom and higher top appears with good volume, it is considered as bullish as per Dow theory
When a sequence of lower top and lower bottom appears with good volume, it is considered as bearish as per Dow theory
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Aravindan replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 8 years, 6 months ago
Buy on bullish trend. Bullish – Sequence formation of higher bottom and higher top with volumes
Sell on bearish trend. Bearish – Sequence formation of lower top and lower bottom with volumes
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Aravindan replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 8 years, 6 months ago
Support is a strong Buyer Zone. Here buyers will prevent price from dropping further.
Resistance is strong Seller Zone. Here sellers will prevent price from moving up further.
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Aravindan replied to the topic price movement in the forum Stock market questions and answers 8 years, 6 months ago
What is the question?
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Aravindan replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 8 years, 6 months ago
Technical Analysis – Price and volume (traded)
Fundamental Analysis – Analyzing the Qualitative & Quantitative data about the company. S<span style=”color: #222222; font-family: arial, sans-serif; line-height: 19.2px;”>tudies everything from the overall economy and industry conditions to the financial condition and management of…[Read more]
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