Deepika Nautiyal

[Deepika Nautiyal]

The Buy Signal based on Dow Theory

A buy signal can develop like this:

1. After the primary downtrend has reached its low trend in the bear market, a secondary uptrend will happen.
2. After that, a certain pullback on some average will have to exceed 3%.
3. This setback should hold higher than the prior lows on both transportation and industrial averages.
4. In the end, a breakout higher than the previous rally high of both averages sends a clear buy signal for the certain bull market.

The Sell Signal based on Dow Theory

1. A sell signal can be recognized with similar methods, but you will have to look in the opposite direction.
2. When a market top and gets set back after, followed up with a rally that goes back up again and falls short of reaching the past high while penetrating recent lows when the next decline happens, it’s a clear sign for sale.

[Deepika Nautiyal]

Major critics against DOW THEORY are :

1. It can’t be used for short term trading.

2. Price movement is predictable only with historical data hence a trader can’t make big profits.

3. It gives price movement only not price characteristics.

[Deepika Nautiyal]

In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal. The head and shoulders pattern is believed to be one of the most reliable trends reversal patterns. It is one of the several top patterns that signal, with varying degrees of accuracy, that an upward trend is nearing its end with varying degrees of accuracy, that an upward trend is nearing its end.

CONDITIONS

Head should be highest among left and right shoulder
Left shoulder – High volume
Right shoulder – low volume
Duration of pattern – minimum 3 months
Short position to be created when it goes below neckline

[Deepika Nautiyal]

Meaning

The song that sticks in your mind, and will not leave no matter how much you try.

Sentence

I have an ear worm. I keep hearing the “AKON” songs over and over and over.

[Deepika Nautiyal]

MEANING
“To relax and enjoy yourself by lying in the sun“

 

SENTENCE
“I just want a little more time to bask in the beauty that perhaps I’m carrying a life.“

[Author]

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