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Raja Prabha kumaresan 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, 5 months ago
Hammer man : 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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Raja Prabha kumaresan and Sangeetha Subramaniam are now friends 8 years, 5 months ago
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Raja Prabha kumaresan 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
Double bottom is two equivalent bottom with minimum one month duration. The volume should be high at the second bottom. When the price crosses the last high then a long position can be created.
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Raja Prabha kumaresan 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 is a type of Price pattern. It is more stronger than flag pattern.
Conditions to qualify as perfect triangle :
1. 5 wave corrective pattern (A,B,C,D,E) should form a triangle shaped structure.
2.It should take around 45 days to form a triangle.
3. Breakout is expected at 60% – 70% of the triangle with high volume.
4. Breakout…[Read more]
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Raja Prabha kumaresan replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 8 years, 6 months ago
price pattern indicates the strength of the trend. The different types of price patterns are:
1. Double top and double bottom
2.Head and shoulder
3.Flag Pattern
4. Cup / Round bottom
5. Triangle Pattern
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Raja Prabha kumaresan 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 says whether the trend is bullish or bearish but price pattern says when to enter and exit the trade and it also explains the strength of the trend.
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Raja Prabha kumaresan 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 /Double bottom : When the price breaks the previous bottom neck line with high volume then create a short position. If the price breaks the previous high neck line with high volume then create a long position.
Head and shoulder : when the volume is high at left shoulder and low in right shoulder then sell at break out.
Inverted head…[Read more]
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Raja Prabha kumaresan replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 8 years, 7 months ago
Dow theory was invented by Charles H. Dow in 19th century. This theory helps to identify the market trend based on Price movement.
Higher Bottom and Higher top with volume – Bullish Trend – Buy
Lower top and lower bottom with volume – Bearish Trend – Sell
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Raja Prabha kumaresan replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 8 years, 7 months ago
Higher bottom and Higher top with volume – Bullish trend – Buy.
Lower Top and Lower bottom with volume – Bearish Trend- sell.
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Raja Prabha kumaresan replied to the topic in the forum Raja Prabha kumaresan 8 years, 7 months ago
Dow theory helps to predict the trend. I helps to identify the demand and supply.
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Raja Prabha kumaresan replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 8 years, 7 months ago
Higher top and higher bottom with volume – Bullish – Buy the stock
Lower top with lower bottom with volume – Bearish- Sell the stock
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Balaji and Raja Prabha kumaresan are now friends 8 years, 7 months ago
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Raja Prabha kumaresan 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 8 years, 7 months ago
Dow theory really needs long time data and it is useful only for long time trading. Dow theory will not help for Infra day trading.
Dow theory is the basics of all the analysis. And it is very good for deriving trends.
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Raja Prabha kumaresan replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 8 years, 7 months ago
Support is the stock price level below which the sellers will not be ready to sell the stocks. There will be more buyers at this point. It is a bearish zone.
Resistance is the stock price level above which buyers will not be ready to buy the stocks. There will be more sellers at this point. It is a bullish zone.
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Raja Prabha kumaresan 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 8 years, 7 months ago
Line chart is been used and the minimum look up period is 2 years and duration of trend forecasting is 2 to 3 months.
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Raja Prabha kumaresan replied to the topic price movement in the forum Stock market questions and answers 8 years, 7 months ago
price movement analysis is done to understand the behavior of the stock in short term.
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Raja Prabha kumaresan replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 8 years, 7 months ago
Pros :
1. Very much reliable.
2. Effective for long term investment.
Cons:
1. Need various parameters for analysis, which is very difficult to get.
2. Analysis takes long time
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Raja Prabha kumaresan replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 8 years, 7 months ago
Pros:
1. For this analysis, we only need price and volume of the stock traded.
2. Suitable for short term investment.
Cons:
1. It is not very much reliable
2. Not suitable for long term investment.
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Raja Prabha kumaresan replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 8 years, 7 months ago
The demand ans supply drives the stock price. The stock changes due to various factors like different buyers and sellers expectation, various markets good and bad news, company loses etc
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Raja Prabha kumaresan replied to the topic What are different types of charts? in the forum Understanding the Price Movement 8 years, 7 months ago
Line Chart, Bar chart, Candle stick chart
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