-
Rajkumar 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, 6 months ago
Inverted head and shoulders pattern indicates accumulation
head indicates lowest price in recent times
R shoulders have high volume and L shoulder have low volume
Duration of each pattern should be 1 month
Long position should be considered while breakout at neckline
-
Rajkumar 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, 6 months ago
Period of formation – 1.5 months minimum
5 wave corrective pattern and breakout after 70% formation is expected
Increased volume expected during breakout
-
Rajkumar 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, 6 months ago
Minimum period 6 months for cup formation
Low volume during rounding bottom formation, it indicates accumulation
Low correlation between stock and market during rounding bottom
Bullish trend starts when price moves upward breaking previous resistance level with increased volume and trend may continue for longer period
-
Rajkumar replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 6 months ago
Double top – short when price breakout support level with high volume
Double bottom – long when price breakout resistance level with high volume
Head and shoulders – short when price breakout neckline of R shoulder with low volume
CUP – long when price moves upward breaking the flat bottom of the cup
Flag – Long when price breakout the flag f…[Read more]
-
Rajkumar replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 6 months ago
Double top/bottom, head and Shoulders, Cup, Flag and Triangle are called as price patterns and it helps to study buyer and seller characterstics
-
Rajkumar replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 7 years, 6 months ago
It was discovered by Dow 100 years before to understand demand and supply of the share price
-
Rajkumar replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 7 years, 6 months ago
Based on relative top and bottom sequence, volume and sector index
-
Rajkumar replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years, 6 months ago
Buy – when price hits Higher top followed by higher bottom with huge volume and no divergence between stock and sector index
Sell- when price hits lower bottom followed by lower top with huge volume and no divergence between stock and sector index
-
Rajkumar replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 6 months ago
Support – Buyer zone and point where share price finds support against downward movement
Resistance – Supplier zone and point where share price finds resistance against upward movement
-
Rajkumar 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, 6 months ago
Major critics are – doesn’t study buyer or seller charcter or strength, no short term signals, doesn’t reflects complexity of the market sentiments and risk or reward margin is huge
Dow theory has been the basis of all theories followed and still looks good technique for 3 months period
-
Rajkumar 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, 6 months ago
Daily line chart, minimum period 2 years, trend forecasting will be 2-3months
-
Rajkumar replied to the topic What are different types of charts? in the forum Understanding the Price Movement 7 years, 6 months ago
Line chart, bar chart and candlestick chart
-
Rajkumar replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 7 years, 6 months ago
Market sentiments, short term and long term traders, demand and supply
Volume, demand and supply pressure make the price volatilty
-
Rajkumar replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 7 years, 6 months ago
Studying the company in details and understand the earning capacity and worth of the company
-
Rajkumar replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 7 years, 6 months ago
Analysis helps to understand price movements based on demand and supply and helps to plan risk and reward for each trade
-
Rajkumar replied to the topic What is technical analysis? in the forum Understanding the Price Movement 7 years, 6 months ago
Studyingthe price movement of a share over a period of time and determine when and where to buy or sell using various charts and tools is called as technical analysis
-
Rajkumar replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 7 years, 6 months ago
Fundamental analysis – Sales, future expansion, management, financial statements, competitors, govt policies and etc
Technical analysis – Price, volume, and market sentiments
-
Rajkumar replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 7 years, 6 months ago
Pros – success ratio is great and almost certain
Cons – very difficult to do as it needs more data points and expert knowledge. It also cost more and available only stronger hand like FIIs
-
Rajkumar replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 7 years, 6 months ago
Technical analysis increase the probability of successful trades and help to plan risk reward ratio
Cons is its complexity and identifying the best tool mix or strategy is tricky
-
Rajkumar 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, 6 months ago
Probably 4.5 lakhs crs in a month, yes manipulation is possible but with techincal tools we could somehow identify them and proceed accordingly
- Load More