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Ramesh Selvaraj replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 8 years, 6 months ago
Doji convey a sense of indecision or tug-of-war between buyers and sellers. Prices move above and below the opening level during the session, but close at or near the opening level. The result is a standoff. Neither bulls nor bears were able to gain control and a turning point could be developing.
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Ramesh Selvaraj 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, 6 months ago
The hanging man and the hammer are both candlestick patterns that indicate trend reversal. The only difference between the two is the nature of the trend in which they appear. If the pattern appears in a chart with an upward trend indicating a bearish reversal, it is called the hanging man. If it appears in a downward trend indicating a bullish…[Read more]
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Ramesh Selvaraj replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 8 years, 6 months ago
Morning Star – If the previous Bullish trend is followed by DOJI with significant volume, then it is Morning Star.
Evening Star – If the previous Bearish trend is followed by DOJI with significant volume, then it is Evening Star.
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Ramesh Selvaraj 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, 6 months ago
This candlestick pattern indicates the trend reversal.
The particular day body has to cover at least 50% of the previous day body.
Buying
Previous trend is bearish.The particular day body has to cover the previous low and cover at least 50% of the previous day body.
Selling
Previous trend is bullish.The particular day body has to cover the…[Read more]
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Ramesh Selvaraj 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, 6 months ago
Engulfing pattern indicates the trend reversal from Bullish to Bearish or Bearish to Bullish
Conditions are
Body of the particular day candlestick has to fully engulf the previous day body.
volume is expected to increase
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Ramesh Selvaraj 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, 6 months ago
Candlestick is a technical analysis which is useful for short term trading developed by Japanese. It identifies the bull/bear trend.
This representation is easy to understand open/close price, low/high price from its shape and colouring.
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Ramesh Selvaraj 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, 6 months ago
Short term traders use candle stick analysis. Volume indicates trend reversal.
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Ramesh Selvaraj replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 8 years, 6 months ago
Candle analysis used to forecast short term to medium term investment.
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Ramesh Selvaraj 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 8 years, 6 months ago
Head Shoulder is a pattern where you will have three peaks in which the middle is higher than the other two.
The volume should be high at the left shoulder of the formation of the pattern.
The volume should be low at the right shoulder of the formation of the pattern.
Short position can be considered when the price breaches the neckline of the…[Read more]
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Ramesh Selvaraj replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 8 years, 6 months ago
Double top indicates selling if it break out its bottom neck line.
Double bottom indicates buying if it break out its top neck line.
Head and shoulder pattern for creating short position while breaking down the neck line.
Flag pattern for creating long position if it breaks top neck line.
Triangle pattern- Short if breaks bottom neck line &…[Read more]
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Ramesh Selvaraj 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 8 years, 6 months ago
The left shoulder volume should be high.
Right shoulder volume may be low.
3 month gap between each shoulder
Short position should be considered at breaking point of neck line
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Ramesh Selvaraj 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 8 years, 6 months ago
1. identifying two equal tops top 1 & 2
2. volume should be highduration between
3. two tops should be minimum 1 month
4. short position can be created at the breakout
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Ramesh Selvaraj replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 8 years, 6 months ago
Dow theory is basically used for long term investment,and price pattern is used mostly for short term trading.
Long term investors use price pattern to find good entry points.
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Ramesh Selvaraj 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, 6 months ago
1. Cup shaped formation indicating accumulation over a long period of time
2. They are considered powerful
3. The volume is low
4. The stock generally seems to be detached with the overall market trend
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Ramesh Selvaraj 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 8 years, 6 months ago
Triangle pattern is a another price pattern. The required condtions to form this pattern are,
1. 5 wave corrective pattern should form a triangle shaped structure.
2.The time taken to form triangle area shall be around 45 days.
3.Break out is expected at around 70% of triangle area with high volume.
4. The break out shall create either bullish…[Read more]
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Ramesh Selvaraj 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 8 years, 6 months ago
Flag pattern is one of the price patterns.The conditions to be full filled are,
1. There should a steeper pole.
2.Rectangular sideways movement which will happen for less time only.
3. Long position can be created if there is a positive break out
4. Volume should be high at the break out point.
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Ramesh Selvaraj 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 8 years, 6 months ago
Double bottom is two equivalent bottom created with high volume, duration should be 20 days. Breakout during the second bottom with high volume indicates bullish trend and long positions can be considered.
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Ramesh Selvaraj replied to the topic Price Patterns in the forum Double Bottom / Double Top 8 years, 6 months ago
Price patterns are clear indicator of price movement of a stock which helps the trader to take decision in early stage.
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Ramesh Selvaraj replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 8 years, 6 months ago
head and shoulder, double top and bottom, cup patterns, triangle formation and flag patterns are price patterns
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Ramesh Selvaraj replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 8 years, 6 months ago
Price patterns are clear indicator of price movement of a stock which helps the trader to take decision in early stage.
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