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Rajarathinam 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, 2 months ago
Triangle pattern form when the buyers and sellers are moving forward at the same time to meet at one point. it depicts the equal strength of both buyer and sellers. Triangle can go either ways i.e. bullish or bearish . Triangle breakout is expected at 60-70% and significant volume required to confirm the breakout
5 wave corrective pattern…[Read more]
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Rajarathinam 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, 2 months ago
Cup pattern is the accumulation pattern. In this pattern stocks are accumulated in very low volume over a long period of time. The correlation between market to stock should be low. when the cup starts filling up it shows the sign of bullish trend and we can create long position
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Rajarathinam 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, 2 months ago
Entry price – Once price cut above top of flag
Stop loss – Low bottom of flag pole
Exit price – Entry – Stop loss is the profit
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Rajarathinam 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, 2 months ago
A steeper pole followed by rectangular shaped sideways movement can be consider as flag pattern
Positive pole flag should give positive break out
Volume is expected to increase while giving breakout
Buyers and sellers are aggressive as a result the trend is moving sidewards
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Rajarathinam 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, 2 months ago
Entry price – Once price breaks the neck line
Stop loss – Right shoulder top
Exit price – Entry price – Stop loss ( The difference amount is the profit we can expect) -
Rajarathinam 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, 2 months ago
Inverted Head and shoulder is the accumulation pattern. It means some stronger hand is accumulating all the stock in the market over a short period of time i.e. around 3 months of time.
Head should be recent low
Left shoulder volume should be low
Right shoulder volume should be high
long position can be considered while price break the…[Read more]
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Rajarathinam 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, 2 months ago
Head and shoulder is the distribution pattern. It means some stronger hand is liquidating all of their stock in the market over a short period of time i.e. around 3 months of time.
Head should be recent top
Left shoulder volume should be high
Right shoulder volume should be low
Short position can be considered while price break the neck…[Read more]
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Rajarathinam 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, 2 months ago
Two equivalent bottom
Time duration 1 – 1.5 months
Volume should be high in second bottom
long position can be created once it cut previous high
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Rajarathinam 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, 2 months ago
Two equivalent top
Time duration 1 – 1.5 months
Volume should be high in second top
Short position can be created once it cut previous low
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Rajarathinam replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 2 months ago
When the current stock price cut the previous high/low we can buy/sell
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Rajarathinam replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 2 months ago
Dow theory focuses on Trend whereas Price patterns focuses on behaviour and character of the stock. Price pattern is ideal for medium term investments
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Rajarathinam replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 2 months ago
Price patterns are basically used to analyse the behaviour and characteristics of the stocks. Below are the different type of price patterns
- Double top
- Double bottom
- Flag
- Triangle
- Head & Shoulder
- Cup
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Rajarathinam 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 7 years, 2 months ago
Dow theory
- Focuses only on trend that too only for long term
- it does not show the behaviour of the trend
- it does not show strength and weakness of the price movement
Despite of above drawbacks still many consider Dow as top because it explains demand and supply in very simpler way which is the base for technical analysis
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Rajarathinam replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 2 months ago
Support – It is the previous high. If the current stock price breaks the previous high then price will further rise. we need to create long position.
Resistance – It is the previous low. If the current stock price breaks the previous low then price will further fall. we need to create short position.…[Read more]
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Rajarathinam 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 7 years, 2 months ago
Line charts for a period of 2 years to analyse the trend forecasting for Dow theory
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Rajarathinam replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years, 2 months ago
Demand > Supply i.e. High bottom followed by High Top – Buy
Demand < Supply i.e. Low Top followed by Low Bottom – Sell
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Rajarathinam replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 7 years, 2 months ago
Dow theory gives idea to the investor/trader the stock trend i.e. bullish or bearish. it is ideal for long term investors.
Demand > Supply – Create long position
Demand < Supply – Create short position
Dow theory is basically used for “Trend Analysis”
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Rajarathinam replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 7 years, 2 months ago
We can determine based on top and bottom with significant volume
High top -High bottom – Market trending upwards (Bullish)
Lower top – lower volume – Market trending downwards (Bearish)
Based on DOW theory we can able to find Demand and supply ratio
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Rajarathinam replied to the topic What is the average turnover in NSE only daily basis? Can any one manipulate the stock price? in the forum Understanding the Price Movement 7 years, 2 months ago
Average turnover is around 20000 cr. Since the company listed and volume is high we cannot manipulate the NSE
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Rajarathinam replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 7 years, 2 months ago
Penny stocks price can be easily manipulated and we may end up in loss as people falsely rise the stock value and suddenly short it.
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