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Neelesh Anbazhagan replied to the topic What is Moving Average? in the forum Technical Indicators to understand market trend 7 years, 11 months ago
Moving Average is a simple technical analysis tool that smooths out price data by creating a constantly updated average price. The average is taken over a specific period of time, like 21 days, or any time period the trader chooses.
Conditions to remember :
- If the current stock price is above a moving average the trend is bullish.
- If the…
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Neelesh Anbazhagan 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, 11 months ago
Area GAP / Consolidation:
- This GAP is formed between the demand and supply zone with low volume. It appears inside the trading range.
- It should appear in the non-trending area.
- The GAP may be filled in near term.
- The volume during the Gap day is generally low.
- If the Area Gap is not filled, it shows the weakness of the counter party and…
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Neelesh Anbazhagan replied to the topic What do we interpret using GAP ANALYSIS? in the forum GAP Analysis and its interpretations 7 years, 11 months ago
GAP Analysis indicated the strength of the trend.
GAPS are significant development in price action and chart analysis and should not be ignored.
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Neelesh Anbazhagan 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, 11 months ago
By using the Candle stick price charts, we can able to spot the GAP in the price chart. Identify the recent price action as trending or non-trending. By seeing the trending pattern GAP can be easily named
Types of GAP
- Area gap
- Break out gap
- Run away gap
- Exhaustion gap.
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Neelesh Anbazhagan replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 7 years, 11 months ago
When current day lowest price is greater than the previous day’s highest price it reveals as gap.
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Neelesh Anbazhagan 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, 11 months ago
Hammer – When the lower side tail is two times longer than the body then it is known as Hammer man
It is a bullish trend and time to create a long position.
Hanging Man – When the upper side of the tail is two times longer than the body then it is known as Hanging man.
It is a bearish trend and time to create a short position
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Neelesh Anbazhagan replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 11 months ago
After a significant price fall, and doji appears it is called as morning star- Its a buy call.
After a bullish trend and doji appears it is called evening star- Its a sell call -
Neelesh Anbazhagan replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 7 years, 11 months ago
Doji means Neutral (when the open and close are at the same level).
It appearance after significant rally/fall means temporary pause.
With high volume indicates trend reversal but followed by sideways movement can be ignored.
Morning star – Buy
Evening star – Sell
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Neelesh Anbazhagan 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, 11 months ago
Engulfing is one of the candle stick analysis pattern that indicates the trend reversal.
Conditions :
1.Previous trend should be bearish.
2. The bullish body should cover the previous day body.
3. High volume is expected during the last two days.
Buy the stock next day when the price goes above the previous day high and sell it when reaches…[Read more]
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Neelesh Anbazhagan 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, 11 months ago
piercing Pattern is a reversal candlestick pattern which is bullish in nature and appears at the end of a down trend. The pattern is made of two candle-lines, the first candle is bearish in nature and the second is bullish in nature.
Conditions:
1. The body should cover the previous Day’s low.
2. The current day body should cover at…[Read more]
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Neelesh Anbazhagan 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, 11 months ago
People who want to trade for short term purpose should use the Candlesticks analysis.Volume is important in case of Trend reversal.
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Neelesh Anbazhagan replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 11 months ago
General Forecasting duration will be 5-7 Days
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Neelesh Anbazhagan 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, 11 months ago
Candle sticks found by japanese 200 years ago and in early 1900 western people started using them.Candle stick help us to derive the price moment and it’s easy to identify the indicator better than other charts. Followed only for short term trading.
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Neelesh Anbazhagan replied to the topic What is Double BOTTOM? What are their conditions to determine the bullish trend? in the forum Price Patterns and its characteristics 7 years, 11 months ago
Identify two equivalent bottoms
The duration between the equivalent bottom should be 1 month
Volume should be high at the second bottom or while crossing neck.
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Neelesh Anbazhagan 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, 11 months ago
Inverted Head and Shoulder is just exactly opposite to the Head and Shoulder price pattern
Conditions :
High Volume on the left side of the inverted Shoulder
Low volume on the right side inverted Shoulder
Duration will minimum 3 months.
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Neelesh Anbazhagan replied to the topic What is Head and Shoulder? What are their conditions to determine the bearish trend? in the forum Price Patterns and its characteristics 7 years, 11 months ago
Head and shoulder is a price pattern that forms during distribution of stocks
Conditions :
Head Should be higher than shoulders
High volume on the left shoulder
Low volume on the formation of right shoulder
Minimum period for head and shoulder would be 3 months
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Neelesh Anbazhagan replied to the topic What is Head and Shoulder? What are their conditions to determine the bearish trend? in the forum Price Patterns and its characteristics 7 years, 11 months ago
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Head and shoulder is a price pattern that forms during distribution of stocks
Conditions :
Head Should be higher than shoulders
High volume on the left shoulder
Low volume on the formation of right shoulder
Minimum period for head and shoulder would be 3 months
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Neelesh Anbazhagan replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 11 months ago
Dow theory helps in studying the Supply and Demand. we need input data for 2 years and its useful in long term investment
Price pattern helps in analyzing price movement and volume. Short input data is enough and useful in short term trading.
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Neelesh Anbazhagan 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, 11 months ago
Triangle Pattern is one of the price pattern with following conditions
At least 5 waves should be seen
After connecting two tops and extending the line and connecting two bottoms and extending the line should form a triangle
Breakout is expected at 70% of the triangle and it can be positive or negative
Duration 45days
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Neelesh Anbazhagan replied to the topic What is FLAG pattern? What are the conditions to qualify as perfect FLAG? in the forum Price Patterns and its characteristics 7 years, 11 months ago
Flag Pattern is one of the Price Patterns with following conditions
Steeper pole should be visible (70-80 degree)
From pole rectangular shaped sideways movement
The flag should not drift
The volume should be low
Bullish flag pattern Should give bullish breakout
Bearish Flag pattern should give bearish breakout
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