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shalini 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, 7 months ago
Double top follows Dow theory to derive demand and supply position.
conditions to determine bearish trend are
two equivalent tops
volumes at the second top should be high
duration between the two tops should be 20 days
short positions can be created below previous low
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shalini replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 8 years, 7 months ago
When the market is bullish, buy and when the market is bearish sell.
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shalini replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 8 years, 7 months ago
Price patterns are indicators of market behaviour which gives us an early indication of price movement.
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shalini replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 8 years, 7 months ago
Dow theory gives market directions based on demand and supply. It does not signal entry. And exit points which will give us maximum profits. It is more suitable for long term.
price patterns indicate market behaviour and are good indicators for short term trading because we can identify early entry. And exit points thereby increasing our profits.
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shalini 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, 7 months ago
Inverted head and shoulder pattern indicates accumulation.
Conditions to determine bullish trend are
Volume should be high in left shoulder and low In right shoulder
duration 3 months
when prices start rising beyond neckline, long position can be created.
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shalini 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, 7 months ago
Head and shoulder is a form of price distribution pattern.conditions to determine the bearish trend are
significant rally prior to head and shoulder structure
the head should be the highest among the recent price action.
volume during formation of left shoulder should be highest
duration 3 months
right shoulder should show low…[Read more]
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shalini 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, 7 months ago
Flag pattern is a type of price pattern which reflects market behaviour.
When plotted on a chart, the pattern first shows a steep pole Which shows the strength of the buyer.then there is a sideways movement which is rectangular shaped which is considered a flag. This flag takes less time to form 4 to7 days. The flag should not drift…[Read more]
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shalini 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, 7 months ago
Rounding pattern or cup pattern is a type of accumulation pattern. These patterns are generally powerful if it takes long time to construct. In this pattern, the stock leads its own path and is not affected by market conditions. During the rounding bottom, the volume is at the lowest. The duration for cup formation is minimum of 1 to 1 1/2 years.
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shalini 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, 7 months ago
A triangle pattern is a price pattern which shows market behaviour. The conditions to qualify a perfect triangle are
the triangle should comprise of a 5 wave corrective pattern
the triangle area should be minimum 1.5 months
triangle breakout should happen around 70% zone with volume
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shalini 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, 7 months ago
The major drawback of Dow theory is that we have to wait for an out of sequence high or low for a signal of a trend change. We may miss the highest high or lowest low by a considerable amount. And secondly, there is no telling as to how long a new trend may last. But still Dow theory remains on top of any analysis because it is based on solid…[Read more]
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shalini 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, 7 months ago
line charts are used with a look up period of minimum 2 years. duration of trend forecasting is 2-3 months.
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shalini replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 8 years, 7 months ago
we can determine market trend by analysing data for a minimum 2 years.plot the data on a line chart, spot the major top and bottom.
higher bottom – higher top sequence with high volume qualifies for bullish trend.
lower top – lower bottom sequence with high volume qualifies for bearish trend.
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shalini replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 8 years, 7 months ago
According to dow theory, when demand is greater than supply, it is time to buy and when you find demand is not so greater or powerful, it is time to sell.
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shalini replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 8 years, 7 months ago
dow theory is an old but a golden concept invented by Charles H Dow whose study will show us the direction in which the stock is heading whether positive or negative. it helps identify demand and supply zones and indicates when to buy and sell.
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shalini replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 8 years, 7 months ago
support is the price at which demand is thought to be strong enough to prevent price from declining further.
resistance is the price level at which the selling is strong enough to prevent the price from rising further.
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shalini replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 8 years, 8 months ago
penny stocks are avoided because of the low volume in which they are traded and the associated risk involved.
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shalini 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, 8 months ago
the average turnover in NSE on a daily basis is around 18000 crores. no manipulation in the stock price is possible.
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shalini replied to the topic What are different types of charts? in the forum Understanding the Price Movement 8 years, 8 months ago
different types of charts are: line chart, bar chart and candlestick charts.
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shalini replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 8 years, 8 months ago
stock price is driven by demand and supply. price changes often based on traders expectations.
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shalini replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 8 years, 8 months ago
we need to do an analysis before we engage in a trade to reduce our risk. it will provide a solution to ‘when’ to buy or sell. this way our trade will be a logical business decision and not gambling.
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