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Arif Jani replied to the topic What are the characteristics of four phases (Consolidation, Breakout, Runaway and Exhaustion) of trend? in the forum GAP Analysis and its interpretations 7 years, 8 months ago
<p style=”text-align: left;”>CONSOLIDATION</p>
<p style=”text-align: left;”>It is an area gap occurring in a non trending zone. It is present between the supply zone and demand zone. It will be filled again by the counter party.</p>
<p style=”text-align: left;”></p>
<p style=”text-align: left;”>BREAKOUT</p>
<p style=”text-align: left;”>It occurs…[Read more] -
Arif Jani replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 7 years, 8 months ago
GAP is the difference between the previous close and next day opening price of the stock.
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Arif Jani 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, 8 months ago
GAP can be named based on the area where it occurs
If it occurs in the trending area, it is called area gap
If the gap occurs outside the trending area, when either the buyers or sellers are strong, it is known as breakout gap. Usually breakout gap is accompanied with good volume
If the gap occurs after the breakout gap in the same trend, then…[Read more]
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Arif Jani replied to the topic What do we interpret using GAP ANALYSIS? in the forum GAP Analysis and its interpretations 7 years, 8 months ago
We can interpret the strength of the trend using GAP analysis. It indicates the position the price in the trend, whether it is at the beginning or in the middle of it or at the dog the trend.
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Vinish Kumar and Arif Jani are now friends 7 years, 8 months ago
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Arif Jani replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 8 months ago
Morning star is a doji appearing after a steep price fall. It is usually accompanied with a good volume. The trend usually gets reversed and a bullish trend is expected. But when there is a doji after a sidewards price battle between sellers and buyers, the doji is of no significance. We can create a buy position after a morning star is…[Read more]
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Arif Jani 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, 8 months ago
Piercing pattern is seen in the candlestick analysis. It appears rarely and is often accompanied with good volume. It signifies a reversal of trend from the previous bullish or bearish trend
In bullish trend, the piercing pattern appears after a price fall. The piercing body opens at a lower price than the previous day and covers more than 50…[Read more]
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Arif Jani 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, 8 months ago
Engulfing pattern is seen in candlestick analysis on a frequent basis. this pattern occurs after a price rise or price fall. The pattern can be confirmed when the present body in the day candle chart covers the complete body of the previous day which was in the opposite trend. So, the engulfing pattern confirms the reversal of trend.
when the…[Read more]
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Arif Jani replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 8 months ago
The forecasting duration for candlestick analysis is 4-5 days
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Arif Jani 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, 8 months ago
Candle stick analysis is type used by the japanese. Its application involves creating a day chart with a candlesticks, wherein each candlestick has a coloured body which is either red or green and if the day’ s high and low points are apart from the opening and closing price, then an upper tail and lower tail can be seen. A red body indicates…[Read more]
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Arif Jani 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, 8 months ago
Candlestick analysis is better suited for weekly traders. Volume is a criteria when we derive a trend using doji, hammer and hanging man patterns of candle stick. A good volume confirms the patterns role in the trend
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Arif Jani 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, 8 months ago
Hammer and hanging man are patterns in candlestick analysis. A hammer sign signifies a bullish trend where as a hanging man signifies a bearish trend.
A hammer usually appears after a significant fall in price. The lower tail is 2 times the body of the candle. The upper tail is absent or very minimal. The highest point of price rise is also the…[Read more]
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Arif Jani replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 7 years, 8 months ago
Doji is a pattern in candle stick analysis. It is cross shaped where in the opening price and closing price are the same. Usually a doji is witnessed in a day candle chart. It signifies the reversal of trend after a significant fall or significant rise with a good volume. A doji after a significant price fall is called a morning star, wherein a…[Read more]
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Naveen and Arif Jani are now friends 7 years, 8 months ago
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Arif Jani 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, 9 months ago
Head and shoulder is a price pattern which shows distribution phase by strong hands. It basically consists of a Head and two shoulders. The shoulder on left side shows good volume, where as the right shoulder has low volume.When the price goes below the neck line, it indicates a bearish trend. Here we can go for short position. The head and…[Read more]
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Arif Jani 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, 9 months ago
Rounding bottom or cup pattern is an accumulation phase which spans atlas over 6 months to 2 years.The volume is generally low during the phase. Once the demand becomes greater than the supply, the price shoots up. The stock has no relation to the market trend during the rounding bottom phase.
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Arif Jani replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 9 months ago
We usually buy when the demand is greater than supply with a good volume and sell when the supply is greater than demand with a good volume.
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Arif Jani 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, 9 months ago
A triangle pattern takes 1.5 months to form. Its has series of descending tops and ascending bottoms. Five point are marked A,B,C,D,E,. A line is drawn connecting the consecutive tops and consecutive bottoms. the two lines joining the tops and bottoms meet and form the triangle. The break out happens at about 70% of the triangle area, and it can…[Read more]
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Arif Jani replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 9 months ago
Price patterns are created by the trading behaviours of the buyers and sellers over a period of time. Some patterns like cup patterns can take at least 6 months to form, whereas patterns like flag can form in 7-10 days. These patterns are reliable to either go long or short.
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Arif Jani replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 9 months ago
DOW theory gives us a market trend for the next 2-3 months, where as the price patterns can be short termed except for cup pattern. The price patterns are realised only after the studying the pattern
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