Maria Alex

Moving Average is one type of technical Indicator which is used to predict the future price movements. This indicator will take the past prices and find the average price, and a line on a chart which will be used as future price direction.

1. It is depicted as BULLISH if the current price candle is above MA line. The far above it goes the strong…[Read more]

Moving Average is one type of technical Indicator which is used to predict the future price movements. This indicator will take the past prices and find the average price, and a line on a chart which will be used as future price direction.

1. It is depicted as BULLISH if the current price candle is above MA line. The far above it goes the strong…[Read more]

Technical Indicators are just a proven theories to forecast future price movements based on past historical price actions. It is not based on the assessing instrument’s fundamental factors. Since the future prices are predicted using some technical tools (based on past prices), the influence of future plans about the stocks is missing in…[Read more]

RSI is called as Relative Strength Index which is actually a Momentum Oscillator. This is used to identify the momentum of the stock which is trading.

Using this oscillator we can identify the overbought and oversold conditions. This oscillator would oscillate in between 0 and 100 range where above 70 or 80 is generally called as OVERBOUGHT…[Read more]

RSI is called as Relative Strength Index which is actually a Momentum Oscillator. This is used to identify the momentum of the stock which is trading.

Using this oscillator we can identify the overbought and oversold conditions. This oscillator would oscillate in between 0 and 100 range where above 70 or 80 is generally called as OVERBOUGHT…[Read more]

Doji is simply called as an indecision in the market by both buyers and sellers. It may not have any body or have a smaller body in either red or green.It gives an early indication of any possible trend reversal.

It is used to identify the trend reversal and current trend’s strength.

By the nature of the gap and the place where it occurs, the GAPS can be named in 5 ways.

1. Common Gap – It happens if there is a new about the company and the same will be reflected in the price. Since it is not effective this will be filled soon.

2. Break Away GAP – After the consolidation, this will form at the beginning of the new trend…[Read more]

A GAP is an empty space in the technical chart between two trading periods where the next day opening price does not fall inside the previous day trading range, thus creates a larger change in price. This generally will happen when there is some news about the security which would potentially affects the security’s market price.

Price patterns are short term price movements in a chart which would give signal to trader about the current and future market trends.

Two different patterns can be identified using price patterns, which are

1. Continuation Pattern

a. Pennants

b. Flags

c. Wedges

2. Reversal Pattern

a. Head and Shoulders

b. Double Top

c. Double Bottom

Line Charts are used in DOW theory, with minimum lookup period of 3 weeks to 3 months and trend can be foretasted for years

There are 3 different trends can be identified using dow theory which are primary, secondary and short trend.

Primary Trend Buy signal:

1. After a downtrend, continuous higher top and higher low with increased volume shows the indication of Primary Uptrend, which is a BUY signal for the investors.

Primary Trend Sell Signal:

2. After a…[Read more]

When higher peak and higher trough continuously occurs (min 2 occurances) with increasing volume then it is a possible buy signal as it signals the primary trend.

When lower high and lower trough continuously occurs with increasing volume then it is a possible signal for sell as it signals the downward primary trend.

The sooner we react in the…[Read more]

When higher peak and higher trough continuously occurs (min 2 occurances) with increasing volume then it is a possible buy signal as it signals the upward primary trend.

When lower high and lower trough continuously occurs with increasing volume then it is a possible signal for sell as it signals the downward primary trend.

The sooner we react…[Read more]

1. Investors mainly act after rather than before or at market top and bottom prices. So they tend to miss some movement before taking positions.

2. Different trends of the market is not strictly defined such us primary trend, secondary trend and shirt term trend. Secondary trend beginnings often misunderstood as primary trend beginning and vice…[Read more]

1. Investors mainly act after rather than before or at market top and bottom prices. So they tend to miss some movement before taking positions.

2. Different trends of the market is not strictly defined such us primary trend, secondary trend and shirt term trend. Secondary trend beginnings often misunderstood as primary trend beginning and vice…[Read more]

Support and Resistance are the two zones which is used to identify the enter and exit points for both buyers and sellers during trade.

Support : It is a price point where the price of a share is decling and reaching the temporary low as the sellers kept selling. So this point is where buyers enter into action to poull back to uptrend. If the bu…[Read more]

Dow Theory is one type of technical analysis method which uses the closing prices in a timeline to predict the future trend and price movement. The constructs of this method was developed by Charles Dow during 1990.

Dow theory identifies three trends with in any market.

1. Primary Trend – 3 months to years

2. Secondary Trend – 3 weeks to 3 m…[Read more]