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Pradeep replied to the topic What is the process of identifying momentum stock in intraday? in the forum Intraday Analysis for Day Traders 8 years, 9 months ago
Intraday analysis is done using the Top Down Approach.
The process of identifying the momentum stock in Intraday is as follows :-
1. Identify the Market Direction i.e, whether the market is +ve or -ve.
2. Check Market Breadth (Advance / Decline)
3. Check sector contribution that is weighing for the market direction.
4. Check the Index…[Read more]
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Pradeep replied to the topic Do global markets impact the intraday price movement? How? in the forum Intraday Analysis for Day Traders 8 years, 9 months ago
Intraday price movement is driven by the market sentiment and the global market plays a major role to decide the market trend /movement of our market on a given day.
Indian market that opens at 9 am IST depends upon the prevailing market condition of its Asian peers like, Hongkong market, Singapore market etc., which would have opened taking t…[Read more]
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Pradeep replied to the topic Why the positional analytical methods are not followed in intraday analysis? in the forum Intraday Analysis for Day Traders 8 years, 9 months ago
Intraday price movement is witnessed mainly due to market sentiment and analysis is done using the top down approach.
Positional analysis is done considering several other factors to predict the price movement of a stock, the analysis method followed here is the bottom up approach. The stock is selected and chart is plotted by taking v…[Read more]
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Pradeep replied to the topic What is the IDEAL time to trade intraday? in the forum Intraday Analysis for Day Traders 8 years, 9 months ago
The IDEAL time for trading Intraday would be between 10 am to 11.30 am in the morning and between 1.30 pm to 2.45 pm in the afternoon.
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Pradeep replied to the topic Why do we need to close the intraday position on the same day? Is it mandate? in the forum Intraday Analysis for Day Traders 8 years, 9 months ago
As a disciplined trader if a trade has been executed with the perspective of closing it on the same day it should be religiously followed and the trade should be closed on the same day before the close of the market even if it ends in a loss.
In some cases the Intraday trader uses the margin amount provided by the brokers to trade in the market,…[Read more]
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Pradeep replied to the topic What is intraday analysis? How it is different from positional analysis in the forum Intraday Analysis for Day Traders 8 years, 9 months ago
Intraday analysis is the method of analysis to identify the stocks that needs to be traded(bought & sold) in the same day to make income/profit. Intraday analysis is based on market sentiment, i.e, Market direction, Sector contribution and selecting the stock trading with high volume.
The Intraday analysis follows the top down approach in s…[Read more]
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Pradeep replied to the topic What is RSI? How to identify the buying zone? in the forum Technical Indicators to understand market trend 8 years, 9 months ago
Relative Strength Index or RSI is a momentum indicator that compares the average price change of the advancing periods with the average change of the declining periods.
The RSI can also be used to identify the overbought/oversold levels in a counter, the RSI value above 70 as ‘overbought zone’ and below 30 as ‘oversold zone’.
If a stock is…[Read more]
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Pradeep replied to the topic What is Moving Average? in the forum Technical Indicators to understand market trend 8 years, 9 months ago
A moving average is an indicator that calculates the average price of a security over a specified number of periods. If a stock/security is exceptionally volatile, then a moving average will help to smooth the data. A moving average filters out random noise and offers a smoother perspective of the price action.By applying a 21-days simple m…[Read more]
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Pradeep replied to the topic What is called technical indicators? How it is different from other analysis? in the forum Technical Indicators to understand market trend 8 years, 9 months ago
Technical Indicator is a result of mathematical calculations based on indications of price and/or volume. The values obtained are used to forecast probable price changes.
Indicators filter price action with formulas and not direct reflections of the price action as compared to technical analysis.
Therefor we can use the technical indicator as an…[Read more]
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Pradeep replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 8 years, 9 months ago
In a technical analysis chart, a gap represents an area where no trading takes place. It is is essentially an empty space between one trading period and the previous trading period.
The GAP is formed when there is a large-enough difference in the opening price of a trading period where that price and the subsequent price moves do not fall w…[Read more]
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Pradeep replied to the topic What do we interpret using GAP ANALYSIS? in the forum GAP Analysis and its interpretations 8 years, 9 months ago
Gaps are areas on a chart where the price of a stock moves sharply up or down, with little or no trading in between, it helps in interpreting the strength of the trend.
The GAP that occur at the end of a price pattern and signal the beginning of a new trend is a Breakaway gap.
The GAP that occur near the end of a price pattern and signal a final…[Read more]
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Pradeep 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, 9 months ago
A gap in a chart is essentially an empty space between one trading period and the previous trading period.
The GAP is formed when there is a large-enough difference in the opening price of a trading period where that price and the subsequent price moves do not fall within the range of the previous trading period.
The four types of GAP are :…[Read more]
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Pradeep 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 8 years, 9 months ago
Consolidation :-
1. During this stage the gap will appear inside the trading range.
2. The gap created gets filled easily.
3. The volume during the consolidation stage is generally low.
Breakout : –
1. Break out Gap appears when the price breaks out from its trading range.
2. The volume during the break out day is usually very high.
Runaway…[Read more]
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Pradeep replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 8 years, 9 months ago
Candlestick analysis is very effective for a weekly forecasting and it is very useful tool for the positional traders.
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Pradeep 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, 9 months ago
A candlestick analysis is a technical analysis used to determine the price movement of the stocks/securities.
Candlestick charts have been developed in the 18th century by Munehisa Homma, Japanese rice trader of financial instruments.
Candlesticks are usually composed of the body (black or white), and an upper and a lower shadow (wick): the area…[Read more]
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Pradeep 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, 9 months ago
Candle stick analysis can be used by a position trader. Candle stick being a reversal pattern, Volume plays a key role in deciding the direction of the movement, we can confirm the reversal movement if and only there is a huge volume of stocks are traded.
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Pradeep 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, 9 months ago
Engulfing pattern is a reversal candlestick pattern.
Bullish Engulfing Candlestick Pattern is a bullish reversal pattern, usually occurring at the bottom of a downtrend. The pattern consists of two Candlestick, small bearish candle stick on day one and a bullish candle on day 2. The bearish candle real body of Day 1 is usually contained within…[Read more]
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Pradeep 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, 9 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 to Qualify is as below :
1. The body should cover the previous Day’s low.
2. The current day body…[Read more]
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Pradeep replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 8 years, 9 months ago
The Morning Star candlestick pattern is a reversal pattern in technical analysis and the pattern has three candles which forms at the bottom of a downtrend. The first candle is any long and bearish candle. The second candle is a small and indecisive candlestick(Doji) and the third candle is any long and bullish candle.
We can create a long…[Read more]
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Pradeep replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 8 years, 9 months ago
The Doji is a commonly found pattern in a candlestick chart,it is characterized by being small in length—i.e,a small trading range, with an opening and closing price that are virtually equal.
Doji is a key trend reversal indicator, if it appears at the top of a trend, in an overbought area, we can create short position and if is is seen at the b…[Read more]
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