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Arshad R Khuroo replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 8 years, 5 months ago
buy a stock when price of the stock crosses previous top with increase in volume where as sell a stock when the price of the stock crosses the previous bottom with increase in volume may be compared with other parameters as well
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Arshad R Khuroo replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 8 years, 5 months ago
although the price pattern follow the dow theory,price pattern gives the entry ,exit level to enter a stock. dow theory needs two years of chart for analysis whereas price pattern uses short period and the market trend for analysis and good results based on chart study.
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Arshad R Khuroo 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, 5 months ago
two equivalent top patterns formed with high volume for right side and tops formed at the interval of 20 days it is considered bearish pattern when the pattern crosses previous lower bottom with good volume.
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Arshad R Khuroo 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, 5 months ago
two equivalent bottoms formed at 20 days interval and volume should be high for right side bottom may consider bullish trend when the pattern crosses the previous high with good volume.
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Arshad R Khuroo 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, 5 months ago
inverted head and shoulder is just opposite to the head and shoulder forms with three bottom wave pattern with middle one form the lower bottom compare to other two bottom.interval between three bottom is 1 month. it form bullish pattern when the right wave pattern crosses the the neck of the middle bottom and usually volume is higher for r…[Read more]
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Arshad R Khuroo 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, 5 months ago
head and shoulder pattern shows the formation of a pattern which resembles like head in the middle and two shoulders left and right means 3 waves of up and downs .duration between the patterns is one month period and volume is high in left shoulder and low in right shoulder to identify the bearish trend .the right wave go below the neckline means…[Read more]
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Arshad R Khuroo 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, 5 months ago
Flag is one of the price pattern and gives the representation of the trend rise or fall: it Should have steeper pole(<70 degree). The price of the stock should move in side ways and takes less time to form less than a week. Positive pole flag gives positive break out(bullish trend) and negative pole flag gives negative break out. .As the price…[Read more]
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Arshad R Khuroo 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, 5 months ago
the pattern is like a wave pattern should be like a triangle shape and formation is usually of 45 days. breakouts can be in either direction up or down. the
volume is high after 60 % of triangle indicates bullish but can be bearish as well.
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Arshad R Khuroo 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, 5 months ago
the cup patterns are generally formed with low volumes and take long time to form. the accumulation pattern occurs due to stronger hands of buyer .condition to determine the bullish pattern is rounding bottom generally take long time to form and volume is low and sentiment of the market will not affect the formation of cup pattern. generally there…[Read more]
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Arshad R Khuroo replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 8 years, 5 months ago
the price patterns consist of the following chart patterns which help us to forecast share price they are
head and shoulder pattern
cup pattern
triangle pattern
flag pattern -
Arshad R Khuroo 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, 5 months ago
it requires 2 yrs data to identify the market trend using dow theory . although it is still used primarily to identify market direction. intraday use is limited and so is not commonly applied
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Arshad R Khuroo replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 8 years, 5 months ago
higher bottom and higher top should beat the previous top and bottom is the buy indication. where as if lower top lower bottom is beaten by new top and bottom it is the sell indication.
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Arshad R Khuroo replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 8 years, 5 months ago
market trend is determined using dow theory by higher bottom higher top with good volume means demand greater than supply gives bullish trend where as lower top lower bottom with low volumes gives bearish trend means supply is greater than demand.
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Arshad R Khuroo 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, 5 months ago
type of charts used in dow theory is line charts where we can see top and bottom of stock movement. min look up period is 2 yrs. and the duration of trend forecasting is 1-3 months.
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Arshad R Khuroo replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 8 years, 5 months ago
dow theory is actually we derive demand and supply based on line charts and trends in them, although it is very old but gives basic concept of price movement.
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Arshad R Khuroo replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 8 years, 5 months ago
support is a zone where buyers seem to give a positive move to a falling share price. where as resistance is a zone where sellers tend to reduce a rising share price. in other words support belongs to buyers and resistance belongs to sellers.
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Arshad R Khuroo replied to the topic price movement in the forum Stock market questions and answers 8 years, 5 months ago
price movement is based on demand and supply or buyers and sellers deciding on a share price.
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Arshad R Khuroo replied to the topic What are different types of charts? in the forum Understanding the Price Movement 8 years, 5 months ago
chart types are line charts, bar charts, candlestick charts, gap analysis charts
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Arshad R Khuroo replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 8 years, 5 months ago
details about the company and its expansion plans are needed to do fundamental analysis where as trend study with price and volume or demand and supply for technical analysis.
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Arshad R Khuroo replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 8 years, 5 months ago
penny stocks are avoided becoz they are not fundamentally strong and even technical analysis is difficult to do with these stocks. often traded with low volumes or even not traded for some days.
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