-
Lakshmisudha R replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 8 years, 5 months ago
In candle stick analysis forecasting duration is days to week.
-
Lakshmisudha 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 8 years, 5 months ago
Short term traders who wants to buy or sell shares within a week should use candle stick analysis
High volume indicates trend reversal
-
Lakshmisudha R replied to the topic What is Candle stick analysis? Its evaluation and it real time application? in the forum The Simple Candlestick Analysis 8 years, 6 months ago
candle stick analysis has its origin from Japan.
It has the clear details of open and close prices for the stock and its colorful representation i.e., red for bearish and green for bullish is easy to determine the trend
candle stick analysis is helpful for shot term trading particularly for weekly trading
-
Lakshmisudha R replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 8 years, 6 months ago
Dow Theory helps us to identify the market trend with the help of demand and supply and it is suitable for long term trading.
whereas, Price patterns helps us to identify the price movements which is very helpful for long term as well as short term trading.
-
Lakshmisudha R 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, 6 months ago
Flag pattern is one of the types of price patterns.
duration is around 3 to 7 days
in this pattern lot of buying happens in short span
conditons to qualify as perfect FLAG are
1. Identify the steeper pole in the chart
2. price movement for 3 to 7 days should form a rectangular line
3. Break out happens only on positive side if considered a…[Read more]
-
Lakshmisudha R 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, 6 months ago
Flag pattern is one of the types of price patterns.
duration is around 3 to 7 days
in this pattern lot of buying happens in short span
conditons to qualify as perfect FLAG are
1. Identify the steeper pole in the chart
2. price movement for 3 to 7 days should form a rectangular line
3. Break out happens only on positive side if considered a…[Read more]
-
Lakshmisudha R 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, 6 months ago
Triangle pattern is one of the type of price pattern which shows the strength of consolidation.
Duration is around 45 days
conditions to qualify as perfect triangle are:
spot the five wave points in the chart (tops, bottoms), each top and bottoms should be lower than the first top and bottom marked.
connect all the tops and bottoms it should…[Read more]
-
Lakshmisudha 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 8 years, 6 months ago
Cup pattern is accumulation type of price pattern
stronger hands plays role in this pattern
it takes long duration and has a gradual movement in prices.
Volume should be low for longer duration and When the cup shape is clearly visible and prices starts rising it clearly determines the bullish trend
-
Lakshmisudha 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 8 years, 6 months ago
inverted head and shoulder is exact opposite of head and shoulder.
Identify the shoulder, head and shoulder
Volume should be high in left shoulder and volume should be low in right shoulder
duration should be 3 months
when the prices starts rising beyond the neckline create long position
-
Lakshmisudha R 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, 6 months ago
Head and shoulder is one of the distribution type of Price patterns.
Anyone who wants to sell the shares fast creates this type of pattern.
Conditions to determine the bearish trend
Identify the shoulder , head and shoulder pattern
volume in left shoulder should be high , Volume in right shoulder should be low
Duration should be 3…[Read more]
-
Lakshmisudha R replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 8 years, 6 months ago
There are different price patterns that helps us in identifying the bullish trend and bearish trend
Double top, head and shoulder, cup pattern , Flag pattern are important price patterns that identifies the bullish trend , buying can be done in bullish trend
Double bottom, inverted head and shoulder, inverted cup <span style=”line-height:…[Read more]
-
Lakshmisudha 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 8 years, 6 months ago
Two consecutive equivalent bottom is Double Bottom
Volume should be high at Previous top
When the Price starts crossing the previous top point long position can be created
These are the conditions to determine the bullish trend
-
Lakshmisudha R 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, 6 months ago
Where the buyers are aggressive consecutively at a point, which is spotted as higher top , the consecutive Higher top is termed as Double Top
Duration between the tops should be minimum 1 month
volume should be high at second top
when the prices starts going below the previous bottom we have to create short position
In this way we can…[Read more]
-
Lakshmisudha R replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 8 years, 7 months ago
Price patterns are study of characteristics of price movements.
-
Lakshmisudha R 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, 7 months ago
Dow theory cannot be used for intra day trading
Dow theory still remains on top of any analysis is because it is the oldest theory with 56 percent success ratio
-
Lakshmisudha R replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 8 years, 7 months ago
Support is Buyers Zone, Prices will not go high beyond this point
Resistance is Sellers Zone, Prices will not go low beyond this point
-
Lakshmisudha R replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 8 years, 7 months ago
Take two years data of a company in the form of line chart.
Mark Tops and Bottoms as per Dow Theory
Mark Higher Tops and Higher Bottoms, Lower Tops and Lower Bottoms
when the sequence like Higher Bottom and Higher Top comes with significant volume then it is Bullish we should go for long
When the sequence like Lower Top and Lower Bottom comes…[Read more]
-
Lakshmisudha R replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 8 years, 7 months ago
Take two years data of a company in the form of line chart.
Mark Tops and Bottoms as per Dow Theory
Mark Higher Tops and Higher Bottoms, Lower Tops and Lower Bottoms
when the sequence like Higher Bottom and Higher Top comes then it is Bullish we should go for long
When the sequence like Lower Top and Lower Bottom comes then it is Bearish we…[Read more]
-
Lakshmisudha R 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, 7 months ago
Line Charts are used in Dow Theory
Minimum look up period is 2 years
Duration of Trend forecasting is 2 months
-
Lakshmisudha R replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 8 years, 7 months ago
Buy – following the Higher Bottom – Higher Top sequence along with the volume which is bullish trend.
Sell – Following the Lower Top-Lower Bottom sequence along with the high volume which is bearish trend.
- Load More