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Senthil 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, 10 months ago
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when the previous bear body covers the 50% of the todays bull , its called piercing pattern. .Conditions are upper tail should not be very big.
buy=> when it reaches the upper tail of the previous body , sell=> when it reaches the lower tail of today’s body.
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Senthil 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 7 years, 10 months ago
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- Candlestic stick analysis is use by weekly traders.
- In price patterns volume is given importance.While in candlestic volume is not goven importance .But in some patterns while breakout volume is to be expected.
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Senthil 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, 10 months ago
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Engulfing is one of the candle stick analysis pattern that indicates the trend reversal.
Conditions :
1.Previous trend should be bearish.
2. The bullish body should cover the previous day body.
3. High volume is expected during the last two days.
Buy the stock next day when the price goes above the previous…[Read more]
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Senthil replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 10 months ago
General forecasting duration is one week.
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Senthil 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, 10 months ago
A steeper pole with a sideway trend for a week (4-7 days) and a breakout or breakdown constitutes a flag. Breakout or breakdown is with a good volume and indicates buy or sell position.
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Senthil 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, 10 months ago
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It denotes a continuous fight between buyers and sellers  and it forms triangle shape
CONDITIONS :
triangle are should be minimum of 1.5 months
volume should be high
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Senthil replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 10 months ago
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Demand>supply = buy
Supply >demand = sell
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Senthil replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 10 months ago
<div class=”bbp-reply-content”>Dow theory tells us only about the bearish or bullish.we couldn’t come to know when to buy and sell. But using price patterns we can know when to enter and when to exit the stock price.</div>
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Senthil 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, 10 months ago
Two equivalent top. volume must be high in both the points . duration is 20 days.
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Senthil 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, 10 months ago
A longer time is required to form the cup pattern.The will be no correlation of the share to the market.A cup pattern should be clearly visible in it.long term holding is required to gain the profit.It is know as accumulation by the stronger hands
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Senthil 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, 10 months ago
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It is the distribution /accumulation pattern, it has L.shoulder, Head,R.shoulder. head should be high. it takes few months to form.
minimum 3 months required.
high volume during L.shoulder, stronger hands playing.
low volume in R.shoulder
short position created below neckline.
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Senthil 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, 10 months ago
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It is exactly the reversed pattern of head and shoulder and indicates accumulation.
Conditions:
– The formation should take atleast 3 months.
– The volume at left shoulder should be high.
– The volume at right shoulder should be low.
– The head should be lowest.
– When the current position goes above the…[Read more]
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Senthil replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 10 months ago
Price Patterns are trend lines based on price movements. When price movement changes direction is reversal pattern, if momentum is continuous it is continuation pattern.
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Senthil 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, 10 months ago
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The two equivalent bottom
Volume should be high at right side
Duration must be 20 days
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Senthil 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, 10 months ago
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Dow Theory can be used only to find the Market Trend.
It can’t help in fixing Target and Stop Loss.
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Senthil replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years, 10 months ago
Higher Bottom Higher Top with high volume – Bullish Trend – buy stock, create Long Position
Lower Top and Lower Bottom with high volume – Bearish Trend – sell stock, create short position
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Senthil 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, 10 months ago
line chart with 2 years data
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Senthil replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 7 years, 10 months ago
It is the oldest theory invented by Chrales H Dow. by studying the trend, we will be able to predict the trend of the stock. Hence it is the foundation for the technical analysis.
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Senthil replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 7 years, 10 months ago
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Higher bottom – higher top + With high volume = Bullish Trend
Lower top – lower bottom + with high volume = Bearish Trend
This is how we determine the market trend using Dow theory.
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Senthil replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 10 months ago
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SUPPORT: demand is more than supply
RESISTANCE:supply is more than denand
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