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khushi 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, 9 months ago
candlesticks is Japanese way of identifying demand and supply. it was been practised in japan more than 200 yrs ago which was later been taken over by the western people. its simple and powerful method to analyse. when compared to any other charts candlesticks provide us more information. accounts few days to study and provides a short term trend…[Read more]
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khushi replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 8 years, 9 months ago
candlesticks are used to forecast within a week
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khushi 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, 9 months ago
piercing indicates trend reversal and is good for weekly traders the criteria’s are as follows
bullish – green body should cover the previous days low, the bull body should cover atleast 50% of previous day body, the upper tail should be shorter, volumes may increase, buy when the price crosses the previous day high, stop loss should be…[Read more]
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khushi 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, 9 months ago
The inverted head and shoulder pattern is a accumulation pattern. Should have significant rally before the trend. period of the trend is 3 months, left shoulder should have high volume, head should be high
long position can be made after breakout
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khushi replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 8 years, 9 months ago
we should buy when there is a breakout and sell when the price crosses neckline.
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khushi 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, 9 months ago
double bottom is when we make 2 equivalent bottoms in the shape of “w”. volume should be higher on second bottom. duration between one bottom and the second one should be 1 mth. we should create a long position if the price crosses the neckline.
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khushi 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, 9 months ago
a triangle pattern is when the pole is not very steep and should make 5 waves where in the bottoms of every wave should be higher than the previous one when connecting the 2 tops and 2 bottoms triangle pattern should be formed. volume should be high when giving breakout. this pattern takes 45 days to form. if breakout can happen with good volume…[Read more]
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khushi 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, 9 months ago
cup shaped patterns should be visible in the line charts and there should be lesser volume at the rounding bottoms.
long positions to be created if the trend is maturing or when you feel that the cup is filling.
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khushi 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, 9 months ago
This is distribution/ accumulation patterns. To identify shoulder head shoulder pattern
identify shoulder head and shoulder here head should be the tallest one.
it should take minimum 3 mths.
High volume at lower or 1st shoulder volume should be low on right shoulder that ensures the stronger hand has already moved out create short position i…[Read more]
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khushi replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 8 years, 9 months ago
Dow theory shows us only if the trend is positive or negative however the price patterns tells us about the nature and quality of the trend. Dow theory lacks in showing characteristics and its late however to study any other patterns its important we know about Dow theory.
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khushi replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 8 years, 9 months ago
price patterns are different patterns made on the basis of demand and supply with price and volume movements.
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khushi 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, 9 months ago
a flag pattern is formed when a steeper pole of 75 -80 degree is formed within 2-3 days and then the rectangular price movements happen for 3-7 days.
volume should be low in the range area, breakout should be in same direction. long position to be created if stock is giving same side breakout. when the breakout is happening the volume should be high.
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khushi 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, 9 months ago
double top is when we identify two equivalent tops within a duration of 1 mth and with more volume happening on the second top. we should create short positions if the price fails to sustain previous buying zone ie when the price crosses the neckline.
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khushi 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, 9 months ago
flag is a very powerful one and it occurs very frequently when compared to other patterns
qualities of a perfect flag is as follows
a steep pole of 75 – 80 degree should be formed
rectangular price movements should happen for 3-7 days
volume should be lower during the range area
flag should not drift lower
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khushi replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 8 years, 9 months ago
dow theory explains us the trend whether its positive or negative based on the market movement or demand and supply where in price patterns not only tells us about the trend but also shows us different patterns to know where the price is going to move in the near future.
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khushi replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 8 years, 9 months ago
support levels are where the market/ company finds support ie there is more demand at these levels
resistance level is where it faces resistance ie the supply is greater than demand
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khushi replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 8 years, 9 months ago
we need to take the data of approx 2 years and plot it into line chart then we should mark the tops and bottoms. Qualify the tops and bottoms Look for a sequence to find the trend.If the sequence is formed with Higher bottom and Higher Top with significant volume it is a Bullish trend. If the sequence is formed with Lower bottom and Lower Top wi…[Read more]
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khushi replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 8 years, 9 months ago
sequence of ht and hb with volume is bullish and a sequence of lt and lb is bearish. we should go long when ht and hb with volume is seen and go short when pattern of lt and lb is seen.
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khushi 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, 9 months ago
the line charts are used for dow theory. minimum look up period should be 2 mths. and the duration of trend forecasting can be for 2 mths.
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khushi replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 8 years, 9 months ago
Dow theory was being identified in 19th century by Charles h Dow, it is a study on the market instead of analysis on individual companies. he explains that we reach the demand and supply ratio through price and volumes. this is identified by higher top/ bottom or lower top/ bottoms.
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