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Praveen M 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 ago
Bullish Piercing pattern is a scenario in a stock price movement, where:
- The latest positive(green) body should cover the previous day low.
- The latest positive(green) body should cover at least 50% of the previous day negative(red) body.
- The upper tail on the latest positive body should be very short.
- Volume may increase.
- This should…
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Praveen M 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 ago
Bullish Engulfing pattern is a case in candlestick price movement of a stock, where the latest positive(green) body should cover the entire previous day negative(red) body. This pattern occurs frequently and is reliable. It is more powerful when appears in the Reversal pattern i.e., after a recent price fall. Volume may increase on the engulfing…[Read more]
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Praveen M replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years ago
From a few days to a week.
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Praveen M 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 ago
Candlestick analysis is best suited for weekly traders.
Since candle stick analysis involves only a short period where only temporary buying and selling take place, volume does not have any major role. But a high volume indicates more strength.
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Praveen M 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 ago
Candlesticks is a type of chart that shows the price movement of a stock. Unlike line,bar charts , candlesticks gives details about a particular trading day. It gives the opening and closing price, the highest and the lowest price on that day, and the day’s trend(positive or negative).
Candlestick analysis is a simple but powerful method in…[Read more]
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Praveen M replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years ago
When the price crosses a major counter party zone, either short or long position can be created based on the pattern formed before the crossing.
- Double top – Short
- Double bottom – Long
- Head and Shoulder – Short
- Inverted Head and Shoulder – Long
- Flag – Long(if positive), Short (if negative)
- Cup – Long when the cup starts to fill
…
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Praveen M 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 ago
Triangle pattern is a scenario in a stock price movement when consecutive tops and bottoms are identified, where each top is lower than the previous top and each bottom is higher than the previous bottom, in a such a way that the line joining all the tops and the line joining all the bottoms should meet to form a triangle. This pattern shows the…[Read more]
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Praveen M replied to the topic What Should be Entry price, Exit Price and Stop loss for Flag Pattern in the forum Price Patterns and its characteristics 7 years ago
Entry price : The point at which the breakout occurs after the flag pattern.
Stop loss : The bottom of the steeper pole.
Exit price : Take the difference between entry point and stop loss. Add it to the entry point. That marks the Exit price.
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Praveen M 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 ago
Flag pattern is a scenario in a stock price movement where a regular flag structure has appeared i.e., a steeper price movement which is followed by a sideways movement. A flag pattern usually give the same side breakout. (If the steeper pole is positive, then the bullish trend is expected. If the steeper pole is negative, then bearish trend is…[Read more]
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Praveen M replied to the topic What Should be Entry price, Exit Price and Stop loss for Head & Shoulders in the forum Price Patterns and its characteristics 7 years ago
Entry price : The price point at which the neckline is crossed. (i.e., if the price goes below the level of the lowest bottom in the head and shoulder pattern)
Stop loss : The point at which the price crosses the top of right shoulder. Alternately, the point at which the price crosses the top of right shoulder can also be set as stop loss but it…[Read more]
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Praveen M 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 ago
Inverted Head and Shoulder pattern appears in a stock price movement when two equivalent bottoms are identified along with a significantly lower bottom between them. This happens when a strong hand tends to accumulate a stock in a short period.
Conditions:
- Inverted Head and shoulder structure is first identified.
- Minimum 3 months is re…
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Praveen M 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 ago
Head and Shoulder pattern appears in a stock price movement when two equivalent tops are identified along with a significantly taller top between them. This happens when a strong hand liquidates a stock.
Conditions:
- Head and shoulder structure is first identified.
- Minimum 3 months is required between the shoulders.
- Volume should be hi…
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Praveen M 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 ago
Head and Shoulder pattern appears in a stock price movement when two equivalent tops are identified along with a significantly taller top between them. This happens when a strong hand liquidates a stock.
Conditions:
- Head and shoulder structure is first identified.
- Volume should be high at the left shoulder indicating the intervention of a…
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Praveen M 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 ago
Head and Shoulder pattern appears in a stock price movement when two equivalent tops are identified along with a significantly taller top between them. This happens when a strong hand liquidates a stock.
Conditions:
- Head and shoulder structure is first identified.
- Volume should be high at the left shoulder indicating the intervention of a…
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Praveen M 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 7 years ago
Cup pattern is generally an Accumulation pattern. It happens when a strong hand starts gradually accumulating a stock over a long period of time. During this period, a stock trades at a narrow trading range.
Conditions :
- The rounding bottom or the cup shaped bottom should be identified.
- The correlation of market movement to the stock…
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Praveen M 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 ago
Double Bottom is the inverse of double top. It is scenario in a stock price movement where two equivalent bottoms are identified with a time gap of at least one month, with a high volume at the second bottom or at the breakout region(while crossing the neckline). The time gap confirms the strength of counter party in the same zone.
Double bottom…[Read more]
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Praveen M 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 7 years ago
Double top is a scenario in a stock price movement where two equivalent tops are identified with a time gap of at least one month, with a high volume at the second top or at the breakout region. The time gap actually confirms the strength of counter party in the same zone.
Double top confirms the bearish trend and hence suitable to create Short…[Read more]
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Praveen M replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years ago
Although Dow theory is the basis for every method in Technical analysis, it can only give information about the market trend. Whereas Price patterns help to understand the characteristics of that trend. They give an early indication of price movement.
Also, Dow theory requires a very long lookup period which is not required in Price patterns.
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Praveen M replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years ago
Price patterns are previous price movements of a stock which can be analysed to determine its future movements. Dow theory is the basis of price patterns. They are used to understand the characteristics of a market trend.
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Praveen M replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years ago
Resistance – The price point where the counter party’s domination is high.
Support – The price point where the counter party’s strength no longer holds.
In Bullish trend (transition from HB to HT), the previous top is Resistance and the previous bottom is Support.
In Bearish trend (transition from LT to LB), the previous top is Support and…[Read more]
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