-
Pradeep replied to the topic What is Moving Average? in the forum Technical Indicators to understand market trend 7 years ago
It is the trend line taken from the average price for the period selected.
Generally when the price goes above the MA the trend is considered bullish and when it trends below the MA it is considered bearish.
-
Pradeep 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 ago
Technical indicators are used as an indication to understand the market trend. These are not decision makers.
1. Moving average
2. Relative strength index
-
Pradeep 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 ago
Area Gap
Breakout gap
Runaway gap
Exhaustion gap
-
Pradeep 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 ago
Consolidation- The gap appears in trending range. The gap may be filled in near term. Volume is generally low.
Breakout- The gap appears outside the trending range. Gap may not be filled in near term. High volume.
Runaway- Sudden gap after breakout. Close must be day’s high. Evenly distributed volume for the day. Gap may not be filled in near…[Read more]
-
Pradeep replied to the topic What do we interpret using GAP ANALYSIS? in the forum GAP Analysis and its interpretations 7 years ago
1. Strength of the market.
2. Phase of the trend.
-
Pradeep replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 7 years ago
The difference between the previous close and current open is Gap.
-
Pradeep 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 ago
Hammer- After a price fall, A green candle with long lower tail (twice as long as body), very small upper tail and high volumes.
Hanging man- After a price rally, a red candle with long upper tail(twice as long as body), very small lower tail and high volumes.
Hammer- Entry- High of hammer. SL-Low of hammer.
Hanging man- Entry- Low of…[Read more]
-
Pradeep 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 ago
1. After a price fall, Latest candle must cover previous candle’s low (for bullish)
After a price rally, latest candle must cover previous candle’s high (for bearish)
2. Latest candle body must cover at least 50% of previous candle body.
3. Upper tail must be invisible or very short.
Bullish piercing: Entry- Highest of 2 candles. SL- Lowest…[Read more]
-
Pradeep 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 ago
Weekly traders.
High volumes indicate trend reversal.
-
Pradeep replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years ago
1 week
-
Pradeep 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 ago
Candlestick analysis is done for a period of 1 week.
It is used to identify the price pattern and Create Long or short position.
-
Pradeep replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years ago
Morning star- Appears after dark night and opens to a bright day. After a price fall when the DOJI appears with high volumes price is expected to rise.
Evening star- Appears after a bright day and leads to a dark night. After a price rally, when the DOJI appears with high volume price is expected to fall.
-
Pradeep replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 7 years ago
DOJI- When the open and close price are same.
High volume is required.
Bullish doji- After a price fall, doji indicates a temporary pause. Entry- Candle’s high point. Stop loss- Candle’s low point.
Sideways doji is always ignored.
-
Pradeep 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 ago
Bullish engulfing:
After a price fall when green body completely covers the previous red body it is bullish engulfing. High volume may be seen in last two candles.
Prices are expected to rise. Entry- Highest of the two candles. Stop loss- Lowest of the two candles.
-
Pradeep replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 1 month ago
Bullish- In HB HT trend, previous top is resistance and previous bottom is support.
Bearish- In LT LB trend, previous bottom is resistance and previous top is support.
-
Pradeep replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years, 1 month ago
BUY- HB – HT with high volume, buy at previous top and stop loss at previous bottom.
SELL- LT-LB with high volume, sell at previous bottom and stop loss at previous top.
-
Pradeep 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, 1 month ago
Criticism:
1. It is late in recognizing the trends and often investors end up reacting late than instantly.
2. It cannot be used for intraday.
3. It does not explain the characteristics of price behavior.
Stillmost of the modern day technical analysis are based on Dow theory hence it’s still remains on top.
-
Pradeep 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, 1 month ago
Line chart is used for Dow theory.
Minimum look up period is 2 years.
Duration of trend forecasting is 1-3 months.
-
Pradeep replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 7 years, 1 month ago
Identify the Tops and bottoms in a chart with at least 2 yrs data.
Mark them High top and high bottom.
HB – HT with high volumes is bullish trend. Buy at previous top and stop loss at previous bottom.
LT – LB with high volumes is bearish trend. Sell at previous bottom and stop loss at previous top.
-
Pradeep replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 7 years, 1 month ago
It is a theory formulated by Charles H Dow to understand the market trend and make a long/Short position accordingly.
It is used to identify supply and demand.
Bullish= Demand > Supply = HB – HT trend with high volume.
Bearish= Supply > Demand = LT – LB trend with high volume.
Never to sell at top and buy at bottom.
- Load More