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Janani replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 7 years, 8 months ago
Looks like a cross with same opening & closing price. Price remains unchanged which shows market ability to take price decisions.
<div>- Trade it like a reversal signal (if there is a trend to reverse)
- Treat it as a signal to stand aside (if there is no trend to reverse)
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Janani replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 8 months ago
the morning star and evening star are reversal patterns.
the first candlestick is in the direction of the trend.
the second candlestick can be bullish or bearish and has a small body, denoting indecision in the market.
- the third candlestick is a candlestick in the direction of the reversal, closing preferably beyond the half way mark of the…
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Janani replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 8 months ago
By definition, a price pattern is a recognizable configuration of price movement that is identified using a series of trend lines and/or curves.
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Janani replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 8 months ago
<span class=”_Tgc”>By definition, a price pattern is a recognizable configuration of price movement that is identified using a series of trend lines and/or curves.</span>
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Janani 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, 8 months ago
A double bottom is the end formation in a declining market. It is identical to the double top, except for the inverse relationship in price. The pattern is formed by two price minimalism separated by local peak defining the neck line. The formation is completed and confirmed when the price rises above the neck line, indicating that further price r…[Read more]
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Janani 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, 8 months ago
Looks like a head perched atop two shoulders. A 3-peak pattern with the middle peak above the others. The pattern should look like a person’s head and shoulders, proportional, and not lopsided. The two shoulders should peak near the same price, be nearly the same distance from the head, and look similar (both wide or both narrow peaks). Volume b…[Read more]
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Janani 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, 8 months ago
Among the chart patterns reverse head and shoulder chart pattern formation gives us the opportunity to cover our short position and enter a long trade. These trades will have high rate of success. The formation of reverse head tells us that there is heavy buying of the stock. Reverse Head and shoulder is the result of extraordinary increase in…[Read more]
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Janani replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 8 months ago
buy above the bullish Engulfing pattern for bullish continuation -Means buy when the piercing line breaks through previous high
sell below the bearish Engulfing pattern for bearish continuation – Means sell when the line-height piercing line breaks through previous low
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Janani 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, 8 months ago
Two equivalent tops in a line graph .
Bearish trend, create a short position.
Volume should be high in the left top.
It’s duration is if 1-3 months.
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Janani replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 8 months ago
Dow theory only explains if the trend is Bullish or bearish based upon the previous history.
Where as price patterns help us to predict prices early with volumes.
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Janani 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, 8 months ago
This is also an accumulation neither the buyers nor the sellers are able to take market control . Which means market is making lower highs and higher lows.
Triangle is formed when slope of lower highs and slope of high lows converge at a point.
Create a long position after a break thr’ point of lower highs and stop loss at below higher lows.
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Janani 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, 8 months ago
In candle stick chart , when a sharply trending price suddenly pauses and retraces slightly in a rectangular range , then it breaks the range and continues in the original patterns giving a better opportunity than before the flag formations, which is a bullish pattern.Create a long position.
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Janani 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, 8 months ago
Cup pattern is formed in line charts , its a accumulation pattern which is for min. of 6 months. Price patters are not affected by market movements with low volume. A high rise is formed at break out point where long position can be created.
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Janani replied to the topic Which chart types are suitable for understanding Price patterns namely CUP, Flag in the forum Stock market questions and answers 7 years, 8 months ago
Line charts are for easy understanding in terms of long duration.
Candle sticks are for daily and for short duration’s.
Head & shoulders of line charts are easily understandable.
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Janani replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 8 months ago
Support is bullish helpful for traders to make money , where demand>supply with increase in price.
Resistance is bearish , where demand<supply with decrease in price.
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Janani replied to the topic Since dow theory is only to find the trend, cant we keep target and stop loss? in the forum Stock market questions and answers 7 years, 8 months ago
Targets & stop loss cant be identified out of dow theory . It talks only about demand & supply.
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Janani 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, 8 months ago
Line charts.
minimum of 2 years daily charts.
next 3 months can be forecasted.
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Janani replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 7 years, 8 months ago
It’s a theory to identify demand & supply with volume and to understand the price patterns based upon the market movements, which requires a minimum of 2 years daily charts.
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Janani replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 7 years, 8 months ago
Use daily chart of minimum 2 years. Look for tops and bottoms. at high & low points look if volume is there. Understand if the trend is bullish or bearish.
On bullish – buy
On bearish – sell.
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Janani 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, 8 months ago
It can be only used for long term investments and trading.
Long historical data is required to understand and follow the dow theory which doesn’t suit for short term traders.
It’s only used to refer the market movement and its price reflections.
Remains top , as it narrates the pattern of demand and supply, which strongly recommends only to…[Read more]
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