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Sriram Raghavendran 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, 2 months ago
Traders who want to buy/sell within a week should use candlestick analysis. Volume indicates the trend of the market.
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Sriram Raghavendran 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, 2 months ago
Helps study price movements in few days to 1 week. It is powerful during reversal pattern and it helps traders in deciding whether to take long position or short position based on the price movement.
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Sriram Raghavendran replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 7 years, 2 months ago
DOji means neutral trend (No significant rise or fall )
After price fall, doji appears called bullish doji or morning star, create long position
After uptrend doji appears called bearish doji or evening star, create short position
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Sriram Raghavendran replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 2 months ago
3/4 days to 1 week
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Sriram Raghavendran 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 7 years, 2 months ago
1. Two equivalent Tops.
2. Volume at the 2nd top or its low should be high.
3. Duration between the first top and the 2nd top should be min 20 days.
4. Short position can be considered after the 2nd top low is higher than it’s previous low.
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Sriram Raghavendran 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 7 years, 2 months ago
1. Two equivalent bottom.
2. Volume at the 2nd bottom or it’s high should be higher.
3. Duration between the first bottom and 2nd bottom should be min 20 days.
4. Long position can be considered when the 2nd bottom high goes than the previous high.
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Sriram Raghavendran 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, 2 months ago
Head and shoulder is the distribution pattern. It means some stronger hand is liquidating all of their shares in the market over a short period of time i.e. around 3 months of time.
Head should be recent top
Left shoulder volume should be high
Right shoulder volume should be low
Short position can be considered when price breaks the…[Read more]
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Sriram Raghavendran 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 7 years, 2 months ago
Inverted head and shoulder is to determine a trend reversal from Bearish to Bullish.
Conditions :
Duration – minimum 3 months.
Inverted head must be the lowest price reached and should be steep.
The volume is low on the left shoulder and high on the right shoulder.
When the prices cross the neckline, a bullish trend can be expected.
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Sriram Raghavendran 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 7 years, 2 months ago
Left shoulder – In the left shoulder, price falls and rises to the neckline to form a V shape.
Head – In the head, price falls and rises to the neckline to form a bigger V shape bottom.
Right shoulder – The right shoulder is similar to the left shoulder.
Entry – When the price crosses the R.shoulder Bottom.
Exit – When the shift…[Read more]
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Sriram Raghavendran 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, 2 months ago
5 wave corrective pattern should form a triangle.This shows both the buyers and sellers are aggressive.
Conditions:
1. Triangle area should be minimum 45 days
2. Volume should be high at the breakout
3. Breakout is expected around the 70% of the triangle zone.
If it breaksout upward,then it is bullish trend, so create long position.
If it…[Read more]
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Sriram Raghavendran 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, 2 months ago
1. Cup patterns are generally powerful if it takes long time to construct.
2. Druing the rounding bottom, the volume is expected to be low as possible.
3. The correlation between the market to the stock should be low during the mid of the pattern.
4. Do not buy when it is at the rounding bottom, called dead snake state.
5. Long…[Read more]
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Sriram Raghavendran 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 7 years, 2 months ago
Entry price : the price when the flag exceeds the rectangular formed area.
Stop loss : The price at the bottom of the flag.
Exit price : The same amount calculated as the stop loss.
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Sriram Raghavendran 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 7 years, 2 months ago
1. A Steeper pole.
2. Rectangular shaped sideways movement can be considered as flag.
3. Generally takes less time to form ( 4 to 7 days).
4. Positive pole flag should give positive break out.
5. Volume is expected to increase while giving break out.
6. Long position can be considered when the price goes above the break out…[Read more]
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Sriram Raghavendran replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 2 months ago
Double Top: Short position can be considered when the price goes below the previous low.
Double Bottom: Long position can be considered when the price goes above the previous high.
Head and Shoulder: Short position can be considered when the price goes below the R. Shoulder (While breaking down the Neck Line).
Cup:Take Long position…[Read more]
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Sriram Raghavendran replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 2 months ago
Dow theory focuses on Trend whereas Price patterns focuses on behaviour and character of the stock. Price pattern is ideal for medium term investments.
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Sriram Raghavendran replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 2 months ago
Price patterns are basically used to analyse the behaviour and characteristics of the stocks. Below are the different type of price patterns –
Double top, Double bottom, Flag, Triangle, Head & Shoulder, Cup
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Sriram Raghavendran 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 7 years, 2 months ago
Dow theory cannot be applied on short term or intraday trading. it needs a chart of 2 years at the least to identify major tops and bottoms.
It remains the easiest way to follow trend and identify demand and supply using volume
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Sriram Raghavendran 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 7 years, 2 months ago
Charts used – Line chart (Daily)
Minimum look-up period – 2 years
Duration of trend forecasting – 3 months to +1 year
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Sriram Raghavendran replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 2 months ago
Support is the area where buyers are strong enough to prevent the further fall. (Bottom region)
Resistance is the area where sellers are strong enough to prevent the further rise. (top region)
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Sriram Raghavendran replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years, 2 months ago
D>S – Buy
S>D – Sell
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