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Divya E R replied to the topic How do we use Fibonacci retracement to identify support and resistance zone? in the forum Technical Indicators to understand market trend 2 years, 6 months ago
Fibonacci retracement levels are horizontal lines that indicate where support and resistance are likely to occur. Each level is associated with a percentage. The percentage is how much of a prior move the price has retraced. The Fibonacci retracement levels are 23.6%, 38.2%, 61.8%, and 78.6%. While not officially a Fibonacci ratio, 50% is also used.
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Divya E R replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 2 years, 6 months ago
On a technical analysis chart, a gap represents an area where no trading takes place.
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Divya E R 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 2 years, 6 months ago
Consolidation or area gap- Area gap will appear inside the trading range and may be filled in the near term. The volume during the gap day is generally low.
Breakout gap- Breakout gap appears only when the price gives breakout from its trading range and may not be filled in the near term. The volume during the gap day should be high.
Runaway…[Read more]
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Divya E R replied to the topic What do we interpret using GAP ANALYSIS? in the forum GAP Analysis and its interpretations 2 years, 6 months ago
A gap analysis is the means by which a company can recognize its current state—by measuring time, money, and labor—and compare it to its target state. By defining and analyzing these gaps, the management team can create an action plan to move the organization forward and fill in the performance gaps. This analysis is used to determine whether a c…[Read more]
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Divya E R replied to the topic How to name a GAP? What are Four Types of GAP? in the forum GAP Analysis and its interpretations 2 years, 6 months ago
A gap is an area discontinuity in a security’s chart where its price either rises or falls from the previous day’s close with no trading occurring in between. There are four different types of gaps – Common Gaps, Breakaway Gaps, Runaway Gaps, and Exhaustion Gaps – each with its own signal to traders.
Area gap or common gap- Common gaps gen…[Read more]
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Divya E R replied to the topic What Should be Entry price, Exit Price and Stop loss for Head & Shoulders in the forum Price Patterns and its characteristics 2 years, 6 months ago
Entry – When the price crosses the Right shoulder Bottom.
Exit – When the shift in price happens
Stop Loss – Height of the right shoulder.
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Divya E R 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 2 years, 6 months ago
An uptrend that is interrupted by a head and shoulders top pattern may experience a trend reversal, resulting in a downtrend. Conversely, a downtrend that results in a head and shoulders bottom (or an inverse head and shoulders) will likely experience a trend reversal to the upside. Investors typically enter into a long position when the price…[Read more]
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Divya E R replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 2 years, 6 months ago
The duration of the price pattern is an important consideration when interpreting a pattern and forecasting future price movement. Price patterns can appear on any charting period, from a fast 144-tick chart, to 60-minute, daily, weekly or annual charts. The significance of a pattern, however, is often directly related to its size and…[Read more]
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Divya E R replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 2 years, 6 months ago
Dow theory indicates the direction of the price movement while Price patterns are a subset of Dow theory, which gives an early indication on the price movement and helps to understand the characteristics.
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Divya E R replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 2 years, 6 months ago
A DOJI candlestick forms when a security’s open and close are virtually equal for the given time period and generally signals a reversal pattern for technical analysts. A Doji is used to illustrate market indecision and serves as a signal for a reversal in a market that is either upward or downward trending. A Doji does not occur frequently and is…[Read more]
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Divya E R replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 2 years, 6 months ago
An evening star is a stock-price chart pattern used by technical analysts to detect when a trend is about to reverse. It is a bearish candlestick pattern consisting of three candles: a large white candlestick, a small-bodied candle, and a red candle. The Morning Star pattern is also a trend-reversal pattern, which is bullish and gives a buying…[Read more]
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Divya E R 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 2 years, 6 months ago
The hanging man and the hammer are both candlestick patterns that indicate trend reversal. The only difference between the two is the nature of the trend in which they appear. If the pattern appears in a chart with an upward trend indicating a bearish reversal, it is called the hanging man. If it appears in a downward trend indicating a bullish…[Read more]
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Divya E R replied to the topic What is Candle stick analysis? Its evaluation and it real time application? in the forum The Simple Candlestick Analysis 2 years, 6 months ago
Candlestick charts are used by traders to determine possible price movement based on past patterns. Candlesticks are useful when trading as they show four price points (open, close, high, and low) throughout the period of time the trader specifies. These charts are used by traders to determine possible price movement based on past patterns. They…[Read more]
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Divya E R 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 2 years, 6 months ago
Piercing Pattern is a bullish reversal pattern that can be found at the end of a downtrend. This candlestick pattern is used as an indicator to enter a long position or exit the sell position. Piercing pattern is formed when the bulls and bears, both are fighting to gain control over the prices.
As the market is already in a downtrend, the opening…[Read more] -
Divya E R 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 2 years, 6 months ago
A bullish engulfing pattern occurs in the candlestick chart of a security when a large white candlestick fully engulfs the smaller black candlestick from the period before. This pattern usually occurs during a downtrend and is thought to signal the beginning of a bullish trend in security.
Condition for bullish engulfing: Fall in price trend for…[Read more] -
Divya E R 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 2 years, 6 months ago
Traders use candlesticks to make trading decisions based on regularly occurring patterns that help forecast the short-term direction of the price.
Volume determines the width of the candlestick. Wide candlesticks form when the volume is high, while narrow candlesticks form when the volume is low.
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Divya E R replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 2 years, 6 months ago
Candlestick analysis can be used for weekly forecasting, i.e buying and selling within the week time. Candlestick analysis is very effective for weekly forecasting and it is a very useful tool for positional traders. Forecasting can be done for 4-5 days using the candlestick pattern.
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Divya E R replied to the topic What Should be Entry price, Exit Price and Stop loss for Flag Pattern in the forum Price Patterns and its characteristics 2 years, 6 months ago
Entry price should be at a breakout above the upper pennant line.
Exit price should be just after the price movement has reversed its direction
Stop-loss should be at the point where the breakout gap is filled
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Divya E R 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 2 years, 6 months ago
A cup is a technical chart pattern that resembles a cup and handle where the cup is in the shape of a “u”.
Cup patterns takes longer time to construct and volume is expected to be low.
The correlation between market to the stock should be low during MID pattern. -
Divya E R 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 2 years, 6 months ago
A double bottom has a ‘W’ shape and is a signal for a bullish price movement.
Conditions are:
Two equivalent bottoms
Volume should be high at point B or point C duration should be minimum 20 days
Long positions cab be considered above price high - Load More