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M S Vengatesan replied to the topic What is RSI? How to identify the buying zone? in the forum Technical Indicators to understand market trend 7 years, 5 months ago
RSI is Relative Strength Index to point out the movement of share with topline at 70% and bottom at 30% , which means over bought or over sold. When the stocks crosses over 70% a pullback is expected and at 70% a short position may be created and in the other direction if the stocks goes below 30% it may bounce back and long position may be c…[Read more]
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M S Vengatesan replied to the topic How do we use Fibonacci retracement to identify support and resistance zone? in the forum Technical Indicators to understand market trend 7 years, 5 months ago
The Fibonacci ratios to keep in mind are 61.8 % , 38.2% & 23.6% . Though not under Fibonacci ratio , being a mid point 50% also to be considered to identify the support and resistance zone.
The theory is , when the market trend reaches the above ratio points it is tend to have a temporary retracement before it continues the previous trend.…[Read more]
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M S Vengatesan replied to the topic What is the logic behind golden Mean – Fibonacci Series? in the forum Technical Indicators to understand market trend 7 years, 5 months ago
In Fionacci series each number equals to the sum of the two numbers before it and the difference of two numbers succeding it.
0,1,1,2,3,5,8,13….
When a number in the above sequence is divided by the number before it , it gives the Golden Mean ratio of 1.618 …. 61.8%
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M S Vengatesan 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, 6 months ago
It is named based on where it occurs and the volume.
Area: With in the trading area- non trending period – volume is low- Gap will get filled in near time.
Breakout : Out of trading area- High volume- Gap will not get closed.
Runaway: Happens after breakout- Closure of the day should be the days’ high- moderate volume – Gap will not…[Read more]
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M S Vengatesan replied to the topic What do we interpret using GAP ANALYSIS? in the forum GAP Analysis and its interpretations 7 years, 6 months ago
Gap shows the strength of trend whether its bullish or bearish.
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M S Vengatesan 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, 6 months ago
Area Gap : Occurs with in the trading range and in the non trending area. Volume will be low. May be get filled in short time.
Breakaway Gap : Occurs out of trading range. Volume will be very high. Gap may not get closed.
Runaway Gap: Sellers are becoming the buyers thus running away from their position to arrest their loss. Thus it happens…[Read more]
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M S Vengatesan replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 7 years, 6 months ago
Gap is the difference between the previous day closing price and next day’s opening price, which is significantly high. It shows the strength demand and supply trends.
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M S Vengatesan replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 6 months ago
Morning star :
After a long fall trend if a DOJI forms ,associated with higher volumes , it shows reversal of trend to positive movement. Hence its called as morning star as it is appering after a dark period. Buy at Doji’s higher point and stoploss at Doji’s lower point. Target may be the value between entry and stoploss.
Evening Star
After…[Read more]
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M S Vengatesan 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, 6 months ago
Candle stick analysis is started by Japanese to trade in rice market. Its powerful as it clearly denotes the positive or negative trend , where the days’ price started / ended , low and high of a day. Its is useful especially to under stand the trend or reversal of trend.
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M S Vengatesan replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 6 months ago
Duration may be maximum of a week
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M S Vengatesan 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, 6 months ago
Hammer:
After a long fall if the trade started much lower but moved up and ended in hammer like candle shape in green colour associated with high volume , it is called a hammer and shows reversal of trend. Other condition is the tail should be minimum twice the length of the hammer body. Buy hammers higher point and stoploss at its lowe…[Read more]
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M S Vengatesan 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, 6 months ago
Those who wish to make an analysis for a shorter period say maximum of a month should use candle stick analysis. The volume really helps to identify whether various patterns really forms.
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M S Vengatesan 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, 6 months ago
Bullish Engulfing Pattern :
After a steady fall for few days , if the trading has started lower than the previous day but able to cover the previous day bear body with small upper tail and associated with volume , Long position may be created at the higher point of bullish body . Buy when the trend moves above the higher point of bulli…[Read more]
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M S Vengatesan 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, 6 months ago
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>Bullish Engulfing Pattern :</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>After a steady fall for few days , if the trading has…[Read more] -
M S Vengatesan 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, 6 months ago
The Piercing pattern shows reversal of trend .
Bullish Piercing Pattern :
After a steady fall for few days , if the trading has started lower than the previous day but able to cover more than 50% of previous day body with small upper tail and associated with volume , Long position may be created at the previous days higher point. Buy whe…[Read more]
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M S Vengatesan 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, 6 months ago
The Piercing pattern shows reversal of trend .
Bullish Piercing Pattern :
After a steady fall for few days , if the trading has started lower than the previous day and able to cover more than 50% of previous day body, associated with volume Long position may be created at the previous days higher point. Buy when the trend moves above the last…[Read more]
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M S Vengatesan replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 7 years, 6 months ago
Doji means neutral trend. After a steep / steady fall, if a DOJI appears it shows the buying pressure has started and if it associated with good volume . we can create Long position. The entry may be at the previous day’s high and stop loss may be at previous day’s low. Target may be 1.5 times of entry and stoploss value.
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M S Vengatesan replied to the topic In Bearish Piercing pattern which tail should not be too big (Upper or lower) in the forum Stock market questions and answers 7 years, 6 months ago
Lower tail
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M S Vengatesan replied to the topic What Should be Entry price, Exit Price and Stop loss for Double top in the forum Stock market questions and answers 7 years, 6 months ago
Entry : Previous Low point between A & B top
Exit ; The value between ‘ second top and entry ‘ may be reduced from entry point to arrive the target
Stoploss : Second Top level.
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M S Vengatesan replied to the topic What Should be Entry price, Exit Price and Stop loss for Double Bottom in the forum Stock market questions and answers 7 years, 6 months ago
Entry : Previos highest point between A & B bottoms
Exit : The value between second bottom and entry point may be added with entry point to arrive target
Stoploss. second bottom level
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