-
Raghu.O.Nair 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, 7 months ago
When there are equivalent top it is called a double top.
Conditions:
1. In a duration of 1 month,
2. Has witnessed high volume in the second top.
3. When it crosses the neck line, it is a bearish trend.
-
Raghu.O.Nair replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 7 months ago
Buy :
1. In a Inverted Head & shoulders, when the price crosses the inverted neck line.
2. Double bottom, when the price crosses the inverted neck line.
Sell:
1. In Head & shoulders, Double top – Create short position when the price goes below the neck line.
-
Raghu.O.Nair 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, 7 months ago
Inverted Head and shoulders is a accumulation pattern. It takes months of time to arrive at the pattern.
Conditions :
First, Identify the Inverted Shoulder|Head|shoulder pattern with the middle(head) being the taller one.
Second, 3 months time needed.
Third, Left shoulder to have low volume and right shoulder to have higher volume.
When the…[Read more]
-
Raghu.O.Nair replied to the topic Which chart types are suitable for understanding Price patterns namely CUP, Flag in the forum Stock market questions and answers 7 years, 7 months ago
For understanding the short term behaviour, Candle sticks charts are suggested, for midum to long term, line charts are suggested.
CUP pattern – Line Chart.
Flag Pattern – Candle sticks.
-
Raghu.O.Nair replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 7 months ago
Price pattern tells about the characteristics behind the price movement in short term basis. Whereas Dow theory tells on a long term perspective.
-
Raghu.O.Nair 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, 7 months ago
Cup pattern is a gradual accumulation of stock. It takes longer duration and is generally meant for long term traders.
The cup shaped pattern should be visible(rounding bottom). The correlation to the market should be low. No aggressive buying taking place.
-
Raghu.O.Nair replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 7 months ago
Price pattern explains the price behaviour or price movement. It tells about the characteristics behind the price movement.
-
Raghu.O.Nair 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, 7 months ago
Double bottom is two equivalent bottoms within a duration of 1 month.
1. Identify the equivalent bottoms within a span of one month.
2. Volume should be high at the second bottom and when it crosses the previous top, it is a bullish trend.
-
Raghu.O.Nair 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, 7 months ago
Double bottom is two equivalent bottoms within a duration of 1 month.
1. Identify the equivalent bottoms within a span of one month.
2. Volume should be high at the second bottom and when it crosses the previous, it is a bullish trend.
-
Raghu.O.Nair 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, 7 months ago
Head and Shoulders is Distribution / Accumulation pattern. The head and Shoulder pattern takes place when someone wants to sell within a short span of time.
Firstly identify the Shoulder | Head|Shoulder pattern, where head is the tallest. Analyse minimum 3 month trend. Secondly there has to be higher volume in the lower shoulder and volume should…[Read more]
-
Raghu.O.Nair replied to the topic Since dow theory is only to find the trend, cant we keep target and stop loss? in the forum Stock market questions and answers 7 years, 7 months ago
We can and Should keep the target and Stop loss.
-
Raghu.O.Nair replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years, 7 months ago
HB- HT with Volume = Buy
LB-LT With Volume = Sell
-
Raghu.O.Nair replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 7 years, 7 months ago
For Dow theory, we need to take 2 years data and chart in line graph. Then Identify the Tops and Bottoms.
HB – HT with volume = Bullish Trend
LT-LB with Volume = Bearish trend.
-
Raghu.O.Nair 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, 7 months ago
For Dow Theory, line chart is used. The minimum look up period is 2 years data. The trend forecasting is for a duration of 2 to 3 months.
-
Raghu.O.Nair 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, 7 months ago
Dow theory is effect only for long term investment. It does not cater to the understand the price pattern.
Dow theory is still considered to be the basis of all analysis. It still continues to be effective for long term traders.
-
Raghu.O.Nair replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 7 months ago
When demand is higher than supply, it is termed as Support and When the supply is higher than demand, it is termed as resistance.
-
surya and Raghu.O.Nair are now friends 7 years, 7 months ago
-
Raghu.O.Nair replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 7 years, 7 months ago
Dow Theory is a theory based on demand and supply. It analysis the price movement of stock and establishes a sequences which tells the trend.
-
Raghu.O.Nair replied to the topic price movement in the forum Stock market questions and answers 7 years, 7 months ago
The difference on price ( price going up and down) based on the demand and supply is called price movement.
-
Raghu.O.Nair replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 7 years, 7 months ago
People generally avoid penny stock as it is high risk stocks and very volatile.
- Load More