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Gowri Santhosh replied to the topic What is the logic behind golden Mean – Fibonacci Series? in the forum Technical Indicators to understand market trend 8 years, 2 months ago
Fibonacci Series   0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144,………….
1.618 is the golden mean
the logic is If a number is divided by the previous number the value is approximately 1.618  (ex: 21/13=1.6153)
Fibonacci studies is to obtain a more accurate forecast.
Used to find lines in the stock price movement that help in identifying…[Read more]
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Gowri Santhosh 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 8 years, 2 months ago
Area gap:
If a Gap is formed when the markets are moving in a narrow range.
Breakout gap:
this gap ends a consolidation pattern and happens as prices break out.Break-out Gaps are generally not filled for a long time. The prices may not rise soon to wipe off the loss.
Runaway gap:
Increased buying interest happens all of a sudden, and the…[Read more]
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Gowri Santhosh replied to the topic How to name a GAP? What are Four Types of GAP? in the forum GAP Analysis and its interpretations 8 years, 2 months ago
Gap is named based on where the zone it appears.
There are four types of gaps:-
Area gap
Breakout gap
Runaway gap
Exhaustion gap
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Gowri Santhosh replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 8 years, 2 months ago
If there is difference between previous day closing and current day opening is called as a gap.
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Gowri Santhosh replied to the topic What do we interpret using GAP ANALYSIS? in the forum GAP Analysis and its interpretations 8 years, 2 months ago
Gap analysis is use to identify the strength of the market in any direction.
It doesn’t say whether it is bullish or bearish, but it will say whether the movement because of full strength or lack of strength.
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Gowri Santhosh 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, 2 months ago
The candle stick analysis is useful for weekly traders, the volume should be trend reversal.
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Gowri Santhosh replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 8 years, 2 months ago
Morning Star:
It appears at the bottom of the trend, after a significant price fall,
Volume should be high, it indicates the reversal of trend,
On next day, if the price crosses the morning star’s high we can go for Buy.
Evening Star:
It appears at the top of the trend, after a significant price moves up,
Volume should be high, it i…[Read more]
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Gowri Santhosh replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 8 years, 2 months ago
forecast duration is one day to a week.
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Gowri Santhosh 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 8 years, 2 months ago
It is also a reversal pattern, appears very rarely.
The latest body should cover the 50% of previous body.
To Buy:Â The latest green body should cover the 50% of previous red body, and this should happen after the bearish trend.
To Sell:Â The latest red body should cover the 50% of previous green body, and this should happen after the bullish t…[Read more]
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Gowri Santhosh 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, 2 months ago
Its simple and powerful analytical method.
The line charts doesn’t focus on particular day’s action, whereas the candle sticks analysis gives more detail of studies.
It requires basic understanding of demand and supply and it provides short term trends, which is useful for weekly traders.
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Gowri Santhosh replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 8 years, 2 months ago
Doji meant neutral. That shape of doji look like a star, that means the opening and closing price would be same.
It appears very rarely but very powerful to indication of trend reversal.
If it happens after a major trend then we can get ready for Sell/Buy based on the previous price movement.
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Gowri Santhosh 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 8 years, 2 months ago
when one body completely covers the second body then engulfing accurs. The volume also should me more on that day
when the green body covers the previous red body go for buying it should happen after the bearish trend
when the red body covers the previous green body then go for selling it should happen after a bullish trend
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Gowri Santhosh 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 8 years, 2 months ago
Hammer pattern is a bullish reversal ,when the price opens and moves lower but managed to close towards the open , having a short body and long tail, color of the hammer is not very important,good volumes are expected, this signals the strong presence of buyers at the price level , one can buy with the stop loss of the low of the tail.
Handing…[Read more]
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Gowri Santhosh 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, 2 months ago
Double top is a price pattern, which creates 2 equivalent tops with significant volume difference.
Conditions:
Identifying equivalent tops.
Duration between 2 tops would be around 1 month.
Higher volume at 2nd top and break out point.
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Gowri Santhosh 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, 2 months ago
Double bottom is a price pattern, which is creates 2 equivalent bottoms with significant volume difference.
Conditions:
Identify 2 equivalent bottoms,
Duration between 2 bottoms would be minimum 1 month,
Volume should be higher between 2nd bottom and the break out point.
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Gowri Santhosh 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, 2 months ago
Head and shoulder is a price pattern, which creates the shape like a head creates the shoulders on both sides.
Conditions:
Identify the Head and shoulder pattern,
Duration to form the entire shape is about 3 months,
Volume at left shoulder should be high, at the right shoulder should be low,
Short position can take at the break up point
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Gowri Santhosh 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, 2 months ago
cup pattern is the slow accumulation pattern. The duration to form is very long it may take  1 to 2 years.
There should not be any correlation between the market movements and these stocks. Long positions can be created.
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Gowri Santhosh replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 8 years, 2 months ago
price patterns are price trend that appears in the stock chart. Â The pattern form recognizable shape and are used to forecast the prices.There are list of chart pattern for analysis, double top, double bottom, cup pattern, head and shoulder, flag and triangle.
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Gowri Santhosh replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 8 years, 2 months ago
Dow Theory is a Trend Analysis based on the Price movement, it helps to identify the market trend. Price Patterns are reading the price movement by using the price chart of the stock, it signals a change in trend direction, also known as reversal pattern.
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Gowri Santhosh replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 8 years, 2 months ago
Buy when the price crosses the previous high in the selling zone
Sell when the price comes below the previous low in the buying zone.
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