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Gowri Santhosh 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, 3 months ago
minimum duration of 45 days of buying and selling aggression thereby providing five wave points which constitute a triangular form. Breakout or break down is expected at 70% stage and with a very good volume.
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Gowri Santhosh 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, 3 months ago
Flag Pattern is a graphical representation of the market trend which denotes momentum.
The conditions to qualify as perfect FLAG are:
Need to spot the steeper pole which should be about 75 to 80 degree.
Then there should be rectangular movement of price for about 3 to 7 days and the volume should be low during the flag. When breakout is…[Read more]
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Gowri Santhosh 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, 3 months ago
1.The duration shall be 3 months to form the Head and Shoulder pattern.
2. The head should be the lowest in the recent price.
3.The volume should be high during the left shoulder.
4.Right shoulder volume should be low.
5.Long position can be considered after breaking up the neck line.
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Gowri Santhosh 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, 3 months ago
The major critic against Dow theory is that it only tells us the market trend and fails to tell us its characteristics. It still remains in the top because Dow theory is the basic for any modern day analysis.
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Gowri Santhosh replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 8 years, 3 months ago
Take 2 year data
Identify the significant tops and bottom
Mark higher and lower tags to the tops and bottom
Higher bottom to Higher top trend is Bullish and for long trading
Lower top to Lower bottom trend is Bearish and for short trading
High Volume  should be observed on these days
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Gowri Santhosh replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 8 years, 3 months ago
Higher Bottom Higher Top with high volume – Bullish Trend – buy stock, create Long Position
Lower Top and Lower Bottom with high volume – Bearish Trend – sell stock, create short position
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Gowri Santhosh replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 8 years, 3 months ago
Higher Bottom Higher Top with high volume – Bullish Trend – buy stock, create Long Position
Lower Top and Lower Bottom with high volume – Bearish Trend – sell stock, create short position
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Gowri Santhosh 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, 3 months ago
Generally a line chart is used. Minimum of 2 years data should be considered. The trend duration is about 2-3 months.
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Gowri Santhosh replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 8 years, 3 months ago
Support – When buyers dominate the market preventing price to go downward ( Bullish)
Resistance – When Sellers dominate the market preventing price to go UP ( Bearish)
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Gowri Santhosh replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 8 years, 3 months ago
Dow theory is one of the oldest method of technical analysis. It gives us the market trend whether it is positive or negative.
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Gowri Santhosh replied to the topic price movement in the forum Stock market questions and answers 8 years, 3 months ago
price movement is based on the demand and supply by using the price movements we can determine entry point and exit point for buying the stocks.
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Gowri Santhosh replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 8 years, 3 months ago
Penny Stocks are high risk stock, less traded in the market and highly manipulated stocks.
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Gowri Santhosh replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 8 years, 3 months ago
Demand and supply drives the stock price. Stock prices changes so often because of the buyers and seller competing their trade based on their bid and ask prices.
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Gowri Santhosh replied to the topic What are different types of charts? in the forum Understanding the Price Movement 8 years, 3 months ago
Line chart, bar chart and candle stick chart.
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Gowri Santhosh replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Fundamental analysis – Complete view of the company , past, current and future components in detail.
Technical analysis – Understand the price movement based on demand and supply.
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Gowri Santhosh replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Pros – It is not time consuming and a difficult process. It can be done by anyone who follow the market such as retail traders.
Cons – It is not as accurate or powerful as Fundamental analysis.
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Gowri Santhosh replied to the topic What is technical analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Technical analysis is the method by which you determine the demand and supply based on price movement and volume traded for a stock.
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Gowri Santhosh replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Pro -It is more accurate and can be relied upon.
Cons – Requires more money and time. As retail investor it is not possible to acquire necessary inputs for fundamental analysis.
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Gowri Santhosh replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
To understand the risk and return and increase our success percentage in stock trading.
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Gowri Santhosh replied to the topic What is the average turnover in NSE only daily basis? Can any one manipulate the stock price? in the forum Understanding the Price Movement 8 years, 3 months ago
Its approx 3 lakh crores. We cannot manipulate the stock price.
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