@milanpatel
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Milanrp replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 5 months ago
Double bottom: Create a long position when the price crosses the previous top
Double bottom: create short position when the price crosses the previous bottom
Triangle pattern:When the break out occurs at the 70% mark, If it is a upward break out create long position and if it is downward position create a short position.
Cup pattern: create a…[Read more]
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Milanrp 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, 5 months ago
The rounding cup pattern shows that a gradual accumulation of the stock is taking place.
The condition to determine the bullish trend are as follows:
The duration must be more than 6 months.
During the rounding bottom the volume must be low.
The stock price must be detached from the market movement.
Long position can be considered if the…[Read more]
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Milanrp 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, 5 months ago
Triangle pattern is 5 wave corrective pattern ( i.e The tops in the wave must be lower than the previous top and the bottoms must be higher than the previous bottom. The total numbers of tops+bottom must be 5). The triangle pattern show that both the buyer and the seller are equally powerful.
Condition for Perfect triangle are as follows:
The…[Read more]
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Milanrp 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, 5 months ago
Inverted head and shoulder pattern can be identified by spotting a steep valley flanked by two less steep almost equivalent valleys.
The inverted head and shoulder represents panic buying.
The condition for a pattern to qualify as a inverted head and shoulder are as follows:
Duration for the whole pattern must be minimum 3 months.
The volume…[Read more]
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Milanrp 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, 5 months ago
When two equivalent top occur on the chart and the volume is higher during the second top then the price pattern is called a double top.
The condition for double top are as follows:
The duration between the tops must be minimum 1 month in order to insure that its a suppliers zone.
The volume must be high during the second top or while crossing…[Read more]
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Ajai Kamath and Milanrp are now friends 7 years, 5 months ago
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Milanrp 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, 5 months ago
Chart used: Line chart
Minimum look up period: 2 years
Duration of trend: 3 months
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Milanrp 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, 5 months ago
The major problems with Dow theory is that it cannot identify price movement for a short period of time. Also it cannot identify things such as characteristics of the buyer and seller.
Dow theory is still respected because it is necessary to understand the price movement due to supply and demand
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Milanrp replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 5 months ago
Support is the region were the buyers are strong
Resistance is the region were the seller are strong.
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Milanrp replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years, 5 months ago
Look for the sequence:
HB-HT= create long position;
LT-LB= create short position.
The volume must be significant while crossing the neck line.
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Milanrp replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 7 years, 5 months ago
Market trend can be determined by first opening the line chart with a minimum duration of two year (daily frequency must be used). Then identify the major tops and bottoms. Mark the Higher and lower tops and bottoms. Look for the sequence: HB-HT= create long position; LT-LB= create short position. The volume must be significant while crossing the…[Read more]
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Milanrp replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 7 years, 5 months ago
Dow theory was the first theory that was made to understand the price movement based on the supply and demand of a particular stock. Based on the supply and demand it can predict the price movement.
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Milanrp replied to the topic What are different types of charts? in the forum Understanding the Price Movement 7 years, 5 months ago
The types of charts are as follows: Line charts, Bar charts, Candle sticks chart
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Milanrp replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 7 years, 5 months ago
The stock price is decided by the supply and demand. It changes due to various reasons such as market sentiment, global sentiment, news regarding the particular company, etc.
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Milanrp replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
Fundamental analysis is generally done if you want to invest in a company for a long term. In fundamental analysis all the data regarding the company is collected and a conclusion is drawn.
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Milanrp replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
Analysis is needed because it helps us to understand the risk and reward. If a trade is carried out without doing the analysis then it is basically gambling and not a business deal.
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Milanrp replied to the topic What is technical analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
Technical analysis is the method to understand and characterize the price movement based on the supply and demand for a particular stock. It is a tool that lets you understand the risk and reward in a particular deal.
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Milanrp replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
Inputs for technical analysis: The Price and volume data for a particular stock for the required time period.
Inputs for fundamental analysis: All the factor(Both qualitative and quantitative) related to the company need to be considered.
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Milanrp replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
Pros:
It is the best way to analyse a company if you are planning to invest for a long time
If the all the facts are know then it is also very reliable
Cons:
It is very difficult to get all the facts rights about a particular company.
It also take a lot of time to do a fundamental analysis.
It can be very capital intensive at times
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Milanrp replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
Pros:
Technical analysis can be done by anyone irrespective of their wealth.
Technical analysis is done without any assumptions so it is not biased.
It observes the market, so it also very quick to spot changes.
Cons:
It cannot be accurate 100 percent of the time.
If the analysis is not done properly then it might lead to a loss.
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