-
Nikhath replied to the topic How to name a GAP? What are Four Types of GAP? in the forum GAP Analysis and its interpretations 8 years, 6 months ago
A gap is a non traded zone, usually occurs due to an external /global impact on the market.
4 types of gap:
- area gap
- break-out gap
- run away gap
- exhaustion gap
-
Nikhath replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 8 years, 6 months ago
Gap in technical analysis is referred to as the gap between the previous days close, and the current days open.
-
Nikhath 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 8 years, 6 months ago
Its also a trend reversal pattern , very powerful , but occurrence is rare though.
buy: (green hammer)
- spotted after a continual price fall over past few days
- tail of the hammer should be twice as long as the size of the body , head /upper tail should be very minute, almost negligible.
- high volume should be witnessed on the day.
sell: (red…[Read more]
-
Nikhath 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 8 years, 6 months ago
This a strong trend reversal pattern, but its occurrence is rare.
conditions to qualify: (for buying)
- The latest green candle should cover the previous days low, and and also cover 50% of the previous days red body.
- The trend prior to the occurrence of the bullish piercing has to be bearish.
- buy if the price manages to cross the pr…
-
Nikhath replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 8 years, 6 months ago
morning star appears after a significant price fall over some time, (bearish trend) , the trend further shall be bullish . can buy the stock next day of the doji appearance if the price crosses the previous days high . the reward expected can be 1.5 to 2 times the risk taken , as the doji prediction is usually very powerful.
evening star…[Read more]
-
Nikhath replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 8 years, 6 months ago
Doji means neutral in Japanese , which means that neither parties (buyers or sellers) were in full control of the market, i.e the open and the close of the day was almost the same. Doji is to be coupled with significant volume, to further confirm the reversal prediction… appearance of Doji after a side ways movement is to be ignored.
morning…[Read more]
-
Nikhath 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 8 years, 6 months ago
When the new green candles’ body covers the previous days’ red candle body – bullish engulfing.
when the new red candles’ body covers the previous days’ green candle body – bearish engulfing.
Both of the above are reversal patterns, it indicates that the reversal might remain for the next few days or a week.
Buy– if the price crosses the…[Read more]
-
Nikhath 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 8 years, 6 months ago
Weekly traders can benefit from candle stick analysis. Bigger the volume, stronger the trend reversal in , Doji, hammer, hanging man and piercing. engulfing pattern doesn’t necessarily be coupled with strong volume.
-
Nikhath replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 8 years, 6 months ago
The forecast of a few days or a week can be done through candle sticks analysis.
-
Nikhath replied to the topic What is Candle stick analysis? Its evaluation and it real time application? in the forum The Simple Candlestick Analysis 8 years, 6 months ago
Candle stick analysis is a tool for technical analysis , originally introduced by Japanese, later developed and aspects of it re named for convenience by westerners. This tool helps in analysis for short term trading, like weekly trading. It also indicates the days’ open , close, high and low.
-
Nikhath replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 8 years, 6 months ago
double top- create short position when price breaks the previous bottom neck line, along with high volume
double bottom- create long position when price breaks the previous high, along with high volume
head and shoulder- left shoulder – significant volume; right shoulder- low volume; then sell at the break out
inverted head and sho…[Read more]
-
Nikhath replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 8 years, 6 months ago
Dow theory only says if the trend is bullish or bearish, it does not say about the quality or nature of the trend, price patterns guides in aspects that dow theory doesnt… price patterns also helps in knowing the entry and exit point of a trade.
-
Nikhath 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 8 years, 6 months ago
Triangle pattern- early sign of the bullish or bearish trend, more prominent than the flag
conditions to qualify:
- spot 3 consecutive tops and bottoms , mark them and draw extended line to form a triangle
- duration taken for triangle to form is at-least 45 days
- breakout is expected at 65 to 75% of the triangle, with high volume
- the breakout…
-
Nikhath 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 8 years, 6 months ago
conditions to qualify a double bottom :
- 2 equivalent bottoms with minimum one month duration
- significant volume at the 2nd bottom
- if the price breaks above than the previous neck line, create a long position, its a sign of bullish trend
-
Nikhath 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 8 years, 6 months ago
Double top – 2 equivalent tops with minimum of a months duration in between
conditions to qualify :
- 2 high peaks with equivalent prices with a gap of 1 month in between
- high volume at the second top or the at the breaking point of the previous low, short position can be created at this point.
-
Nikhath 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 8 years, 6 months ago
Its a price pattern that signals price trend at an early stage itself.
conditions to qualify flag:
- steeper pole of around degrees at least , duration taken 4-5 days
- horizontal rectangular formation , with low volume , duration 3 -4 days
- the flag has to breakout in the same direction as the pole, and the volume is to be high during breakout
-
Nikhath 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 8 years, 6 months ago
This is a reciprocal of a head and shoulder, hence an inverted head and shoulder .
Conditions to determine a bullish trend:
- duration taken for the whole pattern to form is again 3 months, as the regular head and shoulder
- the volume at the right shoulder is significant, which means stronger hands are buying the stock
if the above conditions…[Read more]
-
Nikhath 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 8 years, 6 months ago
Head and shoulder is a price pattern, that takes at least 3 months to form, it visually looks like, two short shoulders on either side and the head at the center being significantly elevated.
conditions to determine bearish trend:
- significant rally prior the left shoulder
- the volume at the left shoulder should b significant
- the volume at the…
-
Nikhath 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 8 years, 6 months ago
Rounding bottom or cup pattern is known as the accumulation pattern, which indicates that the stronger hands are in a buying spree, the volume is not as high, the volatility of the market doesn’t have really have an impact on the price of the stock forming cup pattern, also the time duration taken to form the cup pattern is longer, usually a…[Read more]
-
Nikhath replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 8 years, 6 months ago
Its visual representation of the market psychology.
Commonly used price patterns:
- head and shoulder
- double top , double botttom
- flag pattern
- cup/ round bottom
- triangle pattern
- Load More