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Santhosh Chakravarthy replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 8 years, 3 months ago
Higher bottom to higher top with high volume create long position – BUY
Lower top to lower bottom with high volume create short position – SELL
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Santhosh Chakravarthy 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 8 years, 3 months ago
The major critic against dow theory is that it only tells us the market trend and fails to tell us its characteristics. It still remains in the top because dow theory is the basic for any modern day analysis.
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Santhosh Chakravarthy 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 8 years, 3 months ago
Generally a line chart is used. Minimum of 2 years data should be considered. The trend duration is about 2-3 months.
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Santhosh Chakravarthy replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 8 years, 3 months ago
Support – When buyers dominate the market preventing price to go downward ( Bullish)
Resistance – When Sellers dominate the market preventing price to go UP ( Bearish)
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Santhosh Chakravarthy replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 8 years, 3 months ago
Take 2 year data
Identify the significant tops and bottom
Mark higher and lower tags to the tops and bottom
Higher bottom to Higher top trend is Bullish and for long trading
Lower top to Lower bottom trend is Bearish and for short trading
High Volume  should be observed on these days
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Santhosh Chakravarthy replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 8 years, 3 months ago
Dow theory is one of the oldest method of technical analysis. It gives us the market trend whether it is positive or negative.
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Santhosh Chakravarthy replied to the topic price movement in the forum Stock market questions and answers 8 years, 3 months ago
Based on demand and supply
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Santhosh Chakravarthy replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 8 years, 3 months ago
Penny Stocks are high risk stock, less traded in the market and highly manipulated stocks
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Santhosh Chakravarthy replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
To understand the risk and return and increase our success percentage in stock trading
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Santhosh Chakravarthy replied to the topic What is technical analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Technical analysis is the method by which you determine the demand and supply based on price movement and volume traded for a stock.
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Santhosh Chakravarthy replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Analysis done by considering various factors of the company’s progress, future plans, actual growth statistics, revenue model, revenue target, revenue expectations, business strategy, sales growth and similarly all necessary information including those which are classified to public is used to determine the future growth of the company for i…[Read more]
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Santhosh Chakravarthy replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Pros – It is not time consuming and a difficult process. It can be done by anyone who follow the market such as retail traders.
Cons – It is not as accurate or powerful as Fundamental analysis.
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Open Sans’; font-size: 13px; line-height:…[Read more] -
Santhosh Chakravarthy replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Open Sans’; font-size: 13px; line-height: 20px;”>Pros</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Open Sans’; font-size: 13px; line-height: 20px;”>It is more accurate and can be relied…[Read more] -
Santhosh Chakravarthy replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 8 years, 3 months ago
Demand and supply drives the stock price. Stock prices changes so often because of the buyers and seller competing their trade based on their bid and ask prices.
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Santhosh Chakravarthy 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 8 years, 3 months ago
Its approx 3 lakh crores.
We cannot manipulate the stock price.
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Santhosh Chakravarthy replied to the topic What are different types of charts? in the forum Understanding the Price Movement 8 years, 3 months ago
Line, Bar and Candle stick
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Santhosh Chakravarthy replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Fundamental analysis – Complete view of the company , past, current and future components in detail.
Technical analysis – Understand the price movement based on demand and supply
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Santhosh Chakravarthy replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 8 years, 3 months ago
<span style=”color: #777777; font-family: ‘Open Sans’; font-size: 13px; line-height: 20px;”>When the settlement happens on the same day based on market price and payment mode is cash.</span>
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Santhosh Chakravarthy replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 8 years, 3 months ago
Equity market is the trading of shares on the actual share price currently prevalent in the market. The settlement has to happen on a daily basis on the entire traded price at the settlement processed at the end of day  (i.e at 3:30 pm)
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Santhosh Chakravarthy replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 8 years, 3 months ago
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Open Sans’; font-size: 13px; line-height: 20px;”>In a future contract both the buyer and seller have the right to buy and right to sell respectively. So the liability of both the parties is equal. In futures contract a caution deposit is collected…[Read more]
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