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Naveen and Madhan are now friends 7 years, 7 months ago
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srinivash c g and Madhan are now friends 7 years, 7 months ago
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Madhan replied to the topic HDFC-Bullish- Dow theory- Entry 1073.5 in the forum Dow Theory – Old but a Golden Concept 7 years, 11 months ago
This stock should be purchased @ 1073.5
When the price is increasing, it should be sold when it reaches 1130
When the price is decreasing, it should be sold when it reaches 1017.5
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dinesh kumar.R and Madhan are now friends 7 years, 11 months ago
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Madhan replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 11 months ago
Price patterns basically denotes the price movement in the market that helps to identify the demand and supply variations in details.
Most popular price patterns are :
Cup, Doji, Double Botttom/Top, Flag.
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Madhan 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, 11 months ago
When there is demand zone has survived twice for a period of months or weeks and is not able to be breached then it denotes a double bottom.
The bullish trend can be identified when the supply zone is breached after the double bottom. Also the second bottom should contain significant volume. -
Madhan replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 11 months ago
When the supply zone is breached, its time to buy
Likewise when the demand zone is breached, its time to sell
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Madhan replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 11 months ago
Dow theory help us to identify about the demand and supply in the market price movement.
But price pattern helps us to figure out the expectations of the price movement and current market trend.
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Madhan 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, 11 months ago
A cup pattern normally denotes that the shares of a company are being bought slowly over a long time.
The main conditions of bullish trend in cup pattern are
1. the time duration should be a few years
2. Volume should be very low
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Madhan 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, 11 months ago
Flag pattern will resemble like a flag with the price increasing steeply and forming a rectangular pattern sideways.
The time duration should be within a week and the volume should be high.
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Madhan 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, 11 months ago
A head and shoulder is a distribution pattern. Basically it denotes a strong hands in the market distributing the shares over a period of time.
When the right shoulder crossed the demand zone of the left shoulder then it determines the bearish trend.
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Madhan 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, 11 months ago
Double top denotes the significanct strength of the suppliers zone.
When the prices drops below the demand zone after reaching the supply zone twice then it determines a bearish trend.
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Madhan 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, 11 months ago
The inverted head is nothing but the head point lying in the demand zone low in the chart .
The volume should be very low during the head – shoulder.
when the right shoulder crosses left shoulder it denotes bullish trend.
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Madhan 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, 11 months ago
Triangle pattern basically denotes a continuously fight between the buyers and sellers.
The demand and supply moves towards each other consequently forming a triangle shape.
The minimum waves should be 5 and duration should be a month or two
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Madhan 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, 12 months ago
It is not applicable for intraday or positional traders.
Dow theory is the first of its kind (technical analysis) and hence it remains the top .
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Madhan 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, 12 months ago
Chart type is line
Minimum Look up period is 2 years
Durationof trend – few months
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Madhan 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, 12 months ago
Dow theory can be used to figure out the market trend only but not the target and stop loss.
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Madhan replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 7 years, 12 months ago
At first we need to find out the appropriate tops and bottoms in the chart.
Then we need to find out the higher/ lower tops and bottom.
Then based on the Higher Bottom/Top – Bullish or Lower Top/bottom – Bearish we can figure out the market trend.
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Madhan replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years, 12 months ago
Shares can be bought when there is higher bottom and higher top pattern with high volume.
Shares can be sold when there is lower top and lower bottom pattern with high volume.
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Madhan replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 12 months ago
Support – Demand > Supply
Resistance – Supply > Demand
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