-
Rajesh kumar replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years ago
Morning star: When DOJI is below the previous candlestick.
Evening star: When DOJI is above the previous candlestick.
-
Rajesh kumar 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
When a candlestick completely engulfed the previous candlestick it is engulfing pattern. If the engulfing candle is green in color, then we can buy. If the engulfing candle is red in color, then we can sell. good traded volumes is seen.
-
Rajesh kumar 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 7 years ago
<div class=”bbp-reply-content”>
when a candlestick has very big lower tail (twice as big as body) with open and close near to the highest it is hammer. It indicates bullish. Buy at high point of hammer. SL at lowest.
when a candlestick has very big upper tail(twice as big as body) with open and close near to the lowest it is hanging man. It is…[Read more]
-
Rajesh kumar 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
When the current candlestick covers previous days low and the body covers more than half of previous days body it is bullish piercing.A buy signal is given for long and sell should be equivalent to the difference between the previous two days high and low value as the sell value
-
Rajesh kumar 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
A triangle pattern is price pattern where the sellers and buyers are aggressive and forms a zig zag lik structure, and the duration should be 1.5 months and breakout is expected around 70% zone and a good volume is required to confirm this. The breakout can be bullish or bearish depending upon who is strong i.e the buyer or seller.
-
Rajesh kumar 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
<div class=”bbp-reply-content”>
The price pattern looks like a flag. With a steeper pole and a rectangle flag. Duration 3-7 days, volume low at rectangle flag and high only at positive breakout .
</div>
-
Rajesh kumar 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
<div class=”bbp-reply-content”>
Entry price when price breaks down the neck of the right shoulder, stop loss is the top of the right shoulder
exit price is the difference between entry and stop loss.
</div>
-
Rajesh kumar 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
<div class=”bbp-reply-content”>
It is reversal head and shoulders with two bottoms as shoulders and head in between being the lowest bottom and it takes duration of 3 months, volume high at left shoulder bullish trend identified when price breaksout the neck of the right shoulder
</div>
-
Rajesh kumar 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
<div class=”bbp-reply-content”>
It is a formation of two tops like shoulders with a head in between the, it takes 3 months duration to form and volume should be high at left shoulder bearish trend identified when there is a breakout at the neckline of the right shoulder
</div>
-
Rajesh kumar 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 usually takes years to form, during which there will be low volume as it is the gradual accumulation of the stronger hand, if the price breaks above the cup, then it can be considered for the long position.
-
Rajesh kumar replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years ago
Double Top : Short position can be considered below previous low.
Double Bottom : Long position can be considered above previous high.
Head and Shoulder : Short position can be considered while breading down the neck line.
Cup pattern : During the rounding bottom, when cup gets filled we can go for long position
Flag pattern :…[Read more]
-
Rajesh kumar 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
when two double top is identified, which can be more or less equal within a month and the traded volumes are high at the second top, then it determines the bearish trend.
-
Rajesh kumar replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years ago
Price pattern can be studied for the short term market movement of a particular stock and trend of the stock can be identified, whereas the Dow theory takes a longer time frame and misses out the short term variation of the market trend.
-
Rajesh kumar replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years ago
Price patterns explain the price movement of a particular stock, based on this there are different price patterns are CUP, double bottom, double top, head and shoulder, triangle pattern, flag pattern etc. It is mostly used in the short term trading.
-
Rajesh kumar 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: Price of previous top
Exit price: Price at same margin as between previous top and previous bottom
Stop loss: Price of previous bottom
-
Rajesh kumar 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
<div class=”bbp-reply-content”>
In Double bottom two equal bottom is formed with minimum 30 days time in between them, high volume at second bottom
when price moves past the level of previous top a bullish trend is identified.
</div>
-
Rajesh kumar 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 ago
Line chart of minimum 2 years is used. Trend forecasting is 2-3 months.
-
Rajesh kumar replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years ago
Buy – Higher bottom and Higher Top with high volume is a bullish trend. Here we can create a long position to buy and sell the stocks
Sell – Lower Top and Lower Bottom with high volume is a bearish trend. Here we can create a short position to sell and buy the stocks
-
Rajesh kumar 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 ago
Dow theory can be used only for the long term investment period as it is based on the demand and supply, for short term trading it is not usefull as it doesn’t explain ab0ut price pattern. The latest theories are based on the Dow concept of demand and supply, so it still remains top.
-
Rajesh kumar replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 7 years ago
In the two year line chart if we can find the higher bottom – higher top sequence, then it is in bullish trend, then we can take long position at the previous top.
If we find lower top – lower bottom sequence, then it is in bearish trend, then we can take short position at the previous bottom.
- Load More