-
Johnson replied to the topic What is called technical indicators? How it is different from other analysis? in the forum Technical Indicators to understand market trend 8 years, 8 months ago
Indicators can help in identifying Trends and their turning points.They can provide a deeper insight into the balance pf power between Bulls and Bears.
Indicators are more objective than chart patterns.
Indicators can be further divided into Two Groups
Trend -following indicators– Moving averages,MACD, OBV,etc
Oscillators-Stochastics, ROC,…[Read more]
-
Johnson replied to the topic What is RSI? How to identify the buying zone? in the forum Technical Indicators to understand market trend 8 years, 8 months ago
Relative Strength Index(RSI) is an oscillator that measures the strength of any trading stock by monitoring changes in its closing prices.
When RSI declines below the reference line ,it show the bears are strong but the market is oversold and entering its buy zone
-
Johnson replied to the topic How do we use Fibonacci retracement to identify support and resistance zone? in the forum Technical Indicators to understand market trend 8 years, 8 months ago
Fibonacci Price retracement level ratios are-0.236,0.382,0.500,0.618,0764.
These ratios are used as price retracement levels and is used in trading as possible support and resistance levels .
Traders all over the world are watching these levels ans placing buy and sell orders at these levels which becomes a self -fulfilling expectation.
-
Johnson replied to the topic What is the logic behind golden Mean – Fibonacci Series? in the forum Technical Indicators to understand market trend 8 years, 8 months ago
The ratio derived by dividing any number in the series(1,2,3,5,8,13,21……)by the next higher number ,after 3 is always .625.After 89,it is always .618. By dividing any Fibonacci number by preceding number after 2 is always 1.6 and after 144 the number is always 1.618.These ratios are referred a to as the “Golden Mean”.
Additional ratio were…[Read more]
-
Johnson replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 8 years, 8 months ago
A Gap in a chart is essential an empty space between one trading period and the previous trading period .
-
Johnson 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, 8 months ago
Area Gap-Any gap which is forms inside the trading area is called Area gap,and this gap is expected to be filled quickly.
Breakout Gap- This gap occurs when prices leap out of a congestion zone on heavy volume and begins a new trend.
Runaway gap-A runaway gap is found around the middle of fa trend,usually after the price has already made a…[Read more]
-
Johnson replied to the topic What do we interpret using GAP ANALYSIS? in the forum GAP Analysis and its interpretations 8 years, 8 months ago
Gap analysis is used to classify gap and tell us if a gap will be filled or not.
-
Johnson 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, 8 months ago
Gaps occur when prices jump in response to a sudden imbalance of buy or sell order.
Gaps are divided into four major groups;Common,breakaway,continuation,and exhaustion.
-
Johnson 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, 8 months ago
Piercing pattern bullish reversal pattern, occurs in a down trending market and is a two day pattern.
The first day is black which supports he down-trend and the second day is long white day which opens at new low and then closes above the midpoint of the preceding black day.
Buy when the price crosses the previous midpoint .
-
Johnson replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 8 years, 8 months ago
The morning Star is bottom reversal pattern, where a Doji appears at the end of down trend and gives us clear signal to buy.
The evening star is uptrend reversal pattern, where a Doji appears at the end of uptrend and gives us clear signal to sell.
-
Johnson 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, 8 months ago
Intraday traders and short term traders should use candle stick analysis.
The presence of high volume during reversal pattern confirms the sell /buy signal.
-
Johnson replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 8 years, 8 months ago
Candlestick analysis is basically used by Day traders and short term traders.
The general forecasting duration is day to weekly.
-
Johnson replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 8 years, 8 months ago
Doji are neutral patterns.Any bullish or bearish bias is based on preceding price action and future confirmation.
After an advance or long white candle stick ,a doji signals that buying pressure may be diminishing ,and during a decline or long black candlestick,a doji indicates that selling pressure may be diminishing .
-
Johnson 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, 8 months ago
Bullish engulfing pattern appears at the culmination of a decline or a down trend .The market falls and a black candle forms ,Next a candle Line develops with a real body that wraps around the prior sessions black body.it shows that buying pressure has overpowered selling pressure and gives us clear buy signal.
Bearish engulfing pattern appears…[Read more]
-
Johnson 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, 8 months ago
The different shapes for candlesticks have different meanings.The Japanese have defined different primary candlesticks,based upon the relationship of open ,high,low,and close prices.understanding these basic candle sticks is the beginning of candlestick analysis.
Candle stick charts offer a much more visually appealing chart.Information…[Read more]
-
Johnson 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, 8 months ago
Hammer/hanging man are made of single candlestick lines.They have long shadow and small real bodies that are at or very near the top of their daily trading range.
A hammer/hanging man gives a potent signal when it appears after a significant downturn/upward market.It is potential reversal pattern,a clear signal to go buy/sell
-
Johnson replied to the topic Price Patterns in the forum Double Bottom / Double Top 8 years, 8 months ago
Price pattern are trend indicators basically used by analyst to check for entry or exit signals.
-
Johnson 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, 8 months ago
Double top is one of the most common reversal pattern used for checking the reversal of a bullish trend.
Conditions
Two consecutive tops at about dame price level
Volume is very high in the first top(peak) and light on the second
Minimum 25 days between the two tops
-
Johnson 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, 8 months ago
Graphically two consecutive bottoms are formed like W shape indicated reversal pattern from bearish to bullish trend.
Conditions for double bottom
A prior down trend
25 to 30 days between two bottom peaks
volume should be high in the second bottom
-
Johnson replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 8 years, 8 months ago
Price patterns are formations which appear on the price charts of stock or commodities that can be classified into different categories and that have predictive value.
The most commonly used patterns are
Head and shoulder
Double top and bottoms
cup pattern
Flag pattern
Triangle pattern
- Load More