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Maria Alex and Sangeetha Subramaniam are now friends 8 years, 5 months ago
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Maria Alex replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 8 years, 5 months ago
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
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Maria Alex 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, 5 months ago
Line Charts are used in DOW theory, with minimum lookup period of 3 weeks to 3 months and trend can be foretasted for years
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Maria Alex replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 8 years, 5 months ago
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]
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Maria Alex replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 8 years, 5 months ago
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]
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Maria Alex replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 8 years, 5 months ago
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]
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Maria Alex 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 8 years, 5 months ago
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]
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Maria Alex 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 8 years, 5 months ago
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]
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Maria Alex replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 8 years, 6 months ago
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]
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Maria Alex replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 8 years, 6 months ago
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]
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Maria Alex replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 8 years, 6 months ago
For fundamental analysis, We would require some of the below details about the company.
revenues
earnings
future growth
return on equity
profit margins
economic factors
financial reports
Technical analysis can be done using historical prices, volumes with few charts.
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Maria Alex replied to the topic What is the average turnover in NSE only daily basis? Can any one manipulate the stock price? in the forum Understanding the Price Movement 8 years, 7 months ago
The average Cash and FO segment turn over in both NSE and BSE is approximately 3+ Lakh crores on daily basis. No one can really manipulate the market for long period but they can do it for short period for penny stocks with less volume and market capitalization but not with large volume traded mid and large cap stocks.
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Maria Alex replied to the topic What are different types of charts? in the forum Understanding the Price Movement 8 years, 7 months ago
The below three charts are widely used in technical analysis.
Line chart :- This chart is drawn using the closing prices of a stock with the timeline.
Bar Chart :- It is similar to line chart with small extensions, where each data points are represented by a vertical bar with horizontal dots on the right and left side. The left horizontal dot…[Read more]
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NAMBITHURAI and Maria Alex are now friends 8 years, 7 months ago
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Maria Alex posted a new activity comment 8 years, 7 months ago
Sure Murugan.. Will do that..!
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Maria Alex replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 8 years, 7 months ago
Stocks with low price and less market capitalization will be called as penny stocks. Since there kind of low cap companies tend to have bankruptcy, promoter manipulations, brokers manipulation, long bid ask spread ratio and infrequent trading with less volumes, it is better to avoid these stocks mostly as the technical analysis will go wrong here.
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Maria Alex and Balaji are now friends 8 years, 7 months ago
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Maria Alex replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 8 years, 7 months ago
Analysis is required as the traders need to predetermine the entry and exit points, and the risk and reward ratios before entering into. Moreover we need to know in which stock the investment or trading need to be done, for that we need proper analysis.
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Maria Alex replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 8 years, 7 months ago
We all know that the demand and supply along with trader’s sentiments play a major role in determining stock price in the long run. Apart from demand and supply there are certain catalyst which are also affect the stock prices positively and negatively in a short term period.
1. Earnings reports.
2. New products/ Losing existing products.
3.…[Read more]
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Maria Alex replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 8 years, 7 months ago
pros:
1. Technical analysis parameters (price, volume etc ) about a stock is available to everyone from various sources and so it can be done easily by anyone.
2. This can be done using various technical indicators which are easy to learn and apply.
3. Since this is done based on historic past prices, the future prices can be predicted with…[Read more]
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