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jagadheesh replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 8 years, 7 months ago
Price patterns used for Buy signal:
1. Double bottom – Volume should be high at second bottom or while crossing neck
2. Inverted Head and shoulder – Low volume during formation of the right inverse shoulder
3. Cup pattern – Long position can be created, when the cup starts getting filled.
4. Flag pattern – Steeper pole, rectangular sideway…[Read more] -
jagadheesh 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, 7 months ago
Flag Patterns are chart patterns, formed by price action, which is contained within a small rectangle or a parallelogram. This is created when there is a minor profit booking in either an uptrend or a downtrend.
Flag patterns in an up trend are bullish continuation patterns. So if the price rise stops or even retraces a little with out momentum,…[Read more] -
jagadheesh replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 8 years, 7 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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jagadheesh 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, 7 months ago
The Triangle is a continuation pattern using the concepts of support and resistance and price breakouts.
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jagadheesh 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, 7 months ago
The rounded bottom is a reversal pattern designed to identify the end of a downtrend and the beginning of a potential uptrend. It has the appearance of a ‘U’ shape on the price chart.
The Rounding Bottom is a long-term reversal pattern that is best suited for weekly charts. It is also referred to as a saucer bottom, and represents a long…[Read more] -
jagadheesh 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, 7 months ago
A chart pattern used in technical analysis to predict the reversal of a current downtrend.
Volume Confirmation
LH Shoulder – high volume
Head – declining volume
RH Shoulder – low volume
Neckline – must be broken on high volume -
jagadheesh 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, 7 months ago
Head and shoulders formation occurs when a market trend is in the process of reversal either from a bullish or bearish trend.
Volume Confirmation
LH Shoulder – high volume
Head – declining volume
RH Shoulder – low volume
Neckline – must be broken on high volume -
jagadheesh 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, 7 months ago
Double Top is a chart pattern with two swing highs very close in price. This pattern can be seen in all time-frames. There are a few requirements to classify a chart pattern as a double top:
1.Two peaks that are near equal in price
2.Equal distance in terms of time between highs
3.Volume decreases on the second top -
jagadheesh 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, 7 months ago
A double bottom occurs when prices form two distinct lows on a chart. A double bottom is only complete, however, when prices rise above the high end of the point that formed the second low.
The double bottom is a reversal pattern of a downward trend in a stock’s price. The double bottom marks a downtrend in the process of becoming an…[Read more] -
jagadheesh 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, 7 months ago
<p class=”style88″><span style=”color: #000000;”>A double bottom occurs when prices form two distinct lows on a chart. A double bottom is only complete, however, when prices rise above the high end of the point that formed the second low. </span>
<span style=”color: #000000;”>The double bottom is a reversal pattern of a downward trend in a stock’s…[Read more] -
jagadheesh replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 8 years, 7 months ago
Price Patterns are reading the price movement by using the price chart of the stock, it signals a change in trend direction, also knows as reversal pattern.
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jagadheesh replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 8 years, 7 months ago
Support and Resistance can helps traders to identify the entries and exits.
Support: Tend to stop price from falling below a specific point.
Resistance: Act like a price ceiling,the price cannot break above.
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jagadheesh replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 8 years, 7 months ago
Bullish:
1. Higher Bottom – Higher Top Sequence 2. High Volume 3. No divergence between the Index/Sector and Stock
Bearish:
1.Lower Top – Lower Bottom Sequence 2. High Volume 3. No divergence between the Index/Sector and Stock
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jagadheesh replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 8 years, 7 months ago
Bullish:
1. Higher Bottom – Higher Top Sequence 2. High Volume 3. No divergence between the Index/Sector and Stock
Bearish:
1.Lower Top – Lower Bottom Sequence 2. High Volume 3. No divergence between the Index/Sector and Stock
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jagadheesh 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
UP TREND – An upward trend is broken up into several rallies, where each rally has a high and a low. For a market to be considered in an uptrend, each peak in the rally must reach a higher level than the previous rally’s peak, and each low in the rally must be higher than the previous rally’s low.
DOWN TREND – A downward trend is broken up into…[Read more]
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jagadheesh 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
UP TREND – An upward trend is broken up into several rallies, where each rally has a high and a low. For a market to be considered in an uptrend, each peak in the rally must reach a higher level than the previous rally’s peak, and each low in the rally must be higher than the previous rally’s low.
DOWN TREND – A downward trend is broken up into…[Read more]
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jagadheesh 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 chart
1.Primary Trend – 1 to 3 years
2. Secondary Trend – 3 weeks to 3 months
3. Minor Trend – less than 3 weeks
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jagadheesh 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
The dow theory is criticised for being too late,the trend doesn’t change from bearish to bullish untill the previous reaction high has been surpassed.traders feels this s simply too late and misses much of the move.
Dow theory is much more suited for technical analysis,the success ratio is higher and proven, it was a platform of all other analysis
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jagadheesh replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 8 years, 7 months ago
Dow theory is an Trend Analysis based on the Price movement,it helps to identify the market trend.Dow theory identifies three trends in the market
Primary, Secondary and minor.
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jagadheesh replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 8 years, 7 months ago
Dow theory is an Technical Analysis based on the Price movement,it helps to identify the market trend.Dow theory identifies three trends in the market
Primary, Secondary and minor.
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