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Karthikeyan 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 7 years, 6 months ago
Technical indicators are only used to determine the strength and current trend of the market. Decisions are not to be made by it.
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Karthikeyan replied to the topic What is RSI? How to identify the buying zone? in the forum Technical Indicators to understand market trend 7 years, 6 months ago
RSI – Reltive strength index is used to determine the strength of the demand and supply in non trending areas. RSI < 70 means over bought – create short position.
RSI > 30 means over sold – create long postion.
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Karthikeyan 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 7 years, 6 months ago
Area gap – occurs in non trending area, volume may not be high, will be filled by counter party.
Breakout gap – occurs when a party wins and starts forming a new trend with high volume.
Runaway gap – occurs when short position starts to exit by covering position.
Exhaustion gap – occurs when runaway gap is filled on same day.
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Karthikeyan replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 7 years, 6 months ago
Difference between previous day closing price and today’s opening price.
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Karthikeyan replied to the topic What do we interpret using GAP ANALYSIS? in the forum GAP Analysis and its interpretations 7 years, 6 months ago
We get to know the strength of the demand/supply of the particular position. This is useful before taking a call on the stock.
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Karthikeyan replied to the topic How to name a GAP? What are Four Types of GAP? in the forum GAP Analysis and its interpretations 7 years, 6 months ago
Gap is named after the trend and position it takes. Types are Area gap, Breakout gap, Runaway gap, Exhaustion gap.
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Karthikeyan replied to the topic What is Candle stick analysis? Its evaluation and it real time application? in the forum The Simple Candlestick Analysis 7 years, 6 months ago
Candle stick analysis give us more information on single frame. It is good to evaluate a week data, and holds good for week traders.
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Karthikeyan 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 7 years, 6 months ago
Conditions:
Day open lower than previous day low.
Manages to bounce back and end near day high which has pierced 50% of previous day candle.
Trend reversal with high volume.
Buy previous day high.
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Karthikeyan 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 7 years, 6 months ago
When a candlestick completely covers the previous day candle including day low/high it is called as engulfing. The engulfing candle should be in opposite to the recent trend. Buy at day high if high volume was seen.
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Karthikeyan replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 6 months ago
A doji appearing after bearish trend is a morning star, the one which appears after bullish is evening star. Indicated trend reversal. Need to buy at day high of morning star or sell at day low of evening star.
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Karthikeyan 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 7 years, 6 months ago
Hammer occurs during bearish trend denoting the rise of demand. On that day the day low is very low but the stock manages to close at the day high, with volume this indicates that the demand is strong and trend reversal is going to occur. This method gives higher chances of getting profit. The hanging man is the exact opposite of the hammer,…[Read more]
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Karthikeyan 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 7 years, 6 months ago
One’s who are willing to exit the position in a week shall do with candle stick method, Volume is a very significant factor in confirming the trend reversal.
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Karthikeyan replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 6 months ago
A week holds good for candlestick analysis.
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Karthikeyan replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 7 years, 6 months ago
Doji is also known as evening star. It is very powerful if it comes in trend reversal. It is neutral, the body of the candle stick is barely visible. The volume should be high on the day.
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Karthikeyan 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, 6 months ago
Flag patterns occurs when buyers are readily available to buy the stocks. A steeper pole is expected with less volume during flag.
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Karthikeyan replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 6 months ago
Price patterns helps us to create a position quicker than the dow theory, but it is still based on dow theory.
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Karthikeyan 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, 6 months ago
Double bottom occurs when buyers are seen at the same price range for more than once. Bullish trend occurs when demand outgrows supply.
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Karthikeyan 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, 6 months ago
In head and shoulder, head is longer than shoulder. left shoulder has more volume. Right shoulder has lesser volume. It happens when a stronger hand has to liqudate the stock as soon as possible.
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Karthikeyan 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, 6 months ago
Cup – line
flag – candle stick
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Karthikeyan 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, 6 months ago
It is accumulation pattern, where the demand is predicted to become more than supply. It takes 2-3 months or more sometimes.
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