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PremKumar replied to the topic What is RSI? How to identify the buying zone? in the forum Technical Indicators to understand market trend 8 years, 5 months ago
RSI(Relative Strength Index) is good used in non-trending period which means when the stick price moves in sideways.
After an significant fall in RSI(<30%) buy the stock when the RSI crosses the 30% mark and advances, and sell the stock when the RSI reaches or goes above 70%.
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PremKumar replied to the topic What is RSI? How to identify the buying zone? in the forum Technical Indicators to understand market trend 8 years, 5 months ago
RSI(Relative Strength Index) is good used in non-trending period which means when the stick price moves in sideways.
After an significant fall in index(<30%) buy the stock when the index crosses the 30% mark and advances, and sell the stock when the index reaches or goes above 70%.
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PremKumar replied to the topic What is Moving Average? in the forum Technical Indicators to understand market trend 8 years, 5 months ago
As the name itself says MOVING AVERAGE it represents the average of the price movement of an stock in trending period.
When the stock price is above MV line it indicates bullish trend and when the stock price is below the mv line it indicates bearish trend
Moving average may not fit when the price is moving in sideways.
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PremKumar replied to the topic What is Moving Average? in the forum Technical Indicators to understand market trend 8 years, 5 months ago
As the name itself says MOVING AVERAGE it represents the average of the price movement of an stock in trending period.
When the stock price is above MV line it indicates bullish trend and when the stock price is below the mv line it indicates bearish trend
Moving average does not fit for price moving in sideways.
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PremKumar replied to the topic How do we use Fibonacci retracement to identify support and resistance zone? in the forum Technical Indicators to understand market trend 8 years, 5 months ago
Fibonacci retracement uses horizontal lines to find support and resistance level.Generally 38% is marked as support zone and 62% is marked as resistance zone.
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PremKumar 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, 5 months ago
<span style=”line-height: 1.5;”>Characteristics o</span>f Consoldation(Area) gap:
1.They appear in non-trending area and appears inside trading region of non-trending area.
2.The volume during the formation of gap volume generally remains low.
3.The area gap generally cover in short term of time.
Characteristics of Breakout gap:
1.The gap is…[Read more]
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PremKumar 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, 5 months ago
Gap’s are named after its phase and on its appearance in price trend.
Types:
1.Area gap
2.Breakout gap.
3.Runaway gap.
4.Exhaustion gap.
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PremKumar replied to the topic What do we interpret using GAP ANALYSIS? in the forum GAP Analysis and its interpretations 8 years, 5 months ago
From GAP analysis we can interpret the trend direction and also the strength of the trend in the market.
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PremKumar replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 8 years, 5 months ago
When there is an significance price difference between yesterdays close and today’s open form an gap and hence they are called as gap in technical analysis.
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PremKumar changed their profile picture 8 years, 5 months ago
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PremKumar 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 is an sign of strength.So when an hammer is found with good volume its time to buy the sahre.
Conditions:
1.The candle stick should look like hammer.
2.Lower tail should be at-lest 2X of the candle body and upper tail should be in negligible in size
3.Volume during the formation of hammer pattern should be high
4.Create long when the…[Read more]
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PremKumar replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 8 years, 5 months ago
Morning star: When the doji(star) is formed after an significant price fall(bearish) with good volume is called as morning star
When the price goes above the doji’s day high price create long.
Evening star: When the doji(star) is formed after an significant price rise(bullish) with good volume is called as Evening star
When the price goes b…[Read more]
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PremKumar replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 8 years, 5 months ago
Doji is an another type of trend reversal pattern.
condition for Bullish(Evening star):
1.Recent fall in price should be noted.
2.candle opening and closing should be bullish and candle size should be less forming like an star.
3.Hgih volume indicates trend reversal.
4.Doji forming in side ways may be rejected.
condition for Bearish(Morning…[Read more]
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PremKumar 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, 5 months ago
Piercing line is an another type of price reversal pattern;
Condition of Bullish:
1.Recent fall in price should be noted,preferably 3-4 days.
2.The 50 % candle of previous day bearish candle should be covered by the bullish pattern.high volume preferred.
3.The upper tail should not be very big.
4.Create long when the stock price goes above…[Read more]
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PremKumar 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, 5 months ago
Engulfing pattern is one one price reversal pattern.
Conditions for Bullish 🙂 :
1.Recent fall in price should be noted preferably for 4-5 days.
2.The last bullish candle body should completely cover the recent bearish candle with volume preferable.
3.If the previous day bearish candle have longer lower tail followed by an engulfing pattern…[Read more]
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PremKumar replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 8 years, 5 months ago
3-4 days are generally preferred forecasting period for candle stick analysis.
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PremKumar replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 8 years, 5 months ago
3-4 days are generally preferred forecasting period for candle stick analysis.
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PremKumar 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, 5 months ago
Generally candle stick analysis is used by weekly traders for finding short term trends.
The volume indicates the strength of fight between bulls and the bears which may lead to trend or trend reversal.
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PremKumar 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, 5 months ago
Candle stick analysis is a type of price analysis where the price pattern o an stock is represented in candle form having body and tails(upper tail and lower tail)
Its evaluation Patterns:
1.Engulfing pattern
2.Piercing pattern
3. Doji
4.Hammer
5. Hanging man
In real time it can be used to predict the price movement of the stock price…[Read more]
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PremKumar 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, 5 months ago
Cup pattern is an powerful price pattern
Condition:
1.Duration of formation of the cup pattern should be minimum of 6 month and longer the period stronger the trend.
2.Generally higher volume prior to mid of the cup pattern due to accumulation of stocks.
3.There will be no correlation between the stock and the market data.
4.Create long…[Read more]
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