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Sakunthala replied to the topic What do we interpret using GAP ANALYSIS? in the forum GAP Analysis and its interpretations 8 years, 7 months ago
It uses to identify strength of the market whether goes up or down trend.
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Sakunthala replied to the topic How to name a GAP? What are Four Types of GAP? in the forum GAP Analysis and its interpretations 8 years, 7 months ago
Using candlestick, GAP can be analysed, it can be formed as non trending sideways where the buyers and seller pressure happens.
Four types of GAP:
Area or Consolidation
Breakout Gap
Runaway Gap
Exhaustion Gap.
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Sakunthala replied to the topic What are the characteristics of four phases (Consolidation, Breakout, Runaway and Exhaustion) of trend? in the forum GAP Analysis and its interpretations 8 years, 7 months ago
Characteristics of four phases:
Consolidation: Area gap, that appears after non trending zone, Gap may get filled later. Candlestick be useful to identify the Gap instead of Line charts.
Breakout: Breakout gap appears after non trending zone when price gives breakout. Gap cannot be filled in near term.Volume should be high.It the price is out…[Read more]
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Sakunthala 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, 7 months ago
Engulfing pattern comes in candlestick pattern in technical analysis which formed by Japanese, later adapted by western.
Bullish engulf:
Recent price is witnessed with the bullish body covers the bearish body of the previous.
It engulf the previous, when it crosses the previous day bearish trend, it time to buy.
slight volume is expected…[Read more]
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Sakunthala replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 8 years, 7 months ago
Doji is called neutral, when the markets opens and closed at the same price. The market price of that day is neutral.It is also termed as star.
Uses of Doji,
Morning star:When Doji appears after significant price fall, long position be considered.
Evening star:When Doji appears after significant price rally, short position be considered.
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Sakunthala replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 8 years, 7 months ago
Doji which is the Japanese term used to denote neutral.
It is also termed as morning star and evening star.
Morning star:Positive, time to buy.After Doji if the price fall with volume, it is time to buy.
Evening star:Time to sell, where it appears after DOJI, Significant price rally with volume, time to sell.
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Sakunthala 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, 7 months ago
Bullish piercing pattern appears to be green in color, it pierce the previous day price bearish and covers the previous days low volume.
conditions:
It should cover the previous day low with the bullish trend.
Green Body should cover 50% of previous day body.
The upper tail should not be very big.
It the price moves up higher when compared to…[Read more]
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Sakunthala 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, 7 months ago
Hammer shows the strength and optimistic, the tail should be minimum two times of body use and should be green in color.
Hammer should appear after significant price fall It is a bullish reversal.
Hammer and Hanging man are very powerful and reliable.
Upper tail maximum to be nil, or minimum appears.
Volume should be high during hammer…[Read more]
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Sakunthala replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 8 years, 7 months ago
Forecasting duration for candlestick is weekly.
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Sakunthala 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, 7 months ago
Weekly traders can use candle stick analysis, volume is not necessary in candlestick when compared to price patterns of Dow theory
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Sakunthala 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, 7 months ago
Candlestick analysis is one of the technical analysis, used for short term trading.
It is easy to identify the bullish,bearish patterns with the color difference and high and low volume.
It can be used in short term duration or weekly trading.
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Sakunthala replied to the topic in the forum Sakunthala 8 years, 7 months ago
Candle stick is the simple and powerful analytical tool help to identify price trend.
It helps for weekly traders short duration based on demand and supply.
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Sakunthala replied to the topic Price Patterns in the forum Double Bottom / Double Top 8 years, 7 months ago
Price pattern help to identify the price trends and characteristics of stock in the market.
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Sakunthala 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 is the chart tends to identify the bearish price trend with two tops.
Conditions:
Two equivalent tops with second top with highest volume. Duration of double top is 20 days. Short position can be considered.
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Sakunthala 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, 7 months ago
Double bottom is price trend of bullish reverse of double top.
Conditions:
Two equivalent bottoms with the duration of 20 days. Long positions can be considered.Volume should be high in second bottom where long position obtained.
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Sakunthala 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 Pattern:
It indicated the trend reversal.
Head should be highest, volume of the left shoulder should be high.
Short position can be considered. Duration is minimum one to three months.
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Sakunthala 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 is reversal of Head and shoulder,where volume should be high in left shoulder also duration is one month, long position can be considered while breaking down the neck line. It indicated the accumulation.
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Sakunthala 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
Cup pattern should be visible,and volume is not expected to be high and it takes long time to construct.
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Sakunthala replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 8 years, 7 months ago
Price patterns gives the characteristics of the price movements.eg:double top,double bottom, flag pattern, triangle pattern, head and shoulder.
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Sakunthala 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 formed by steeper pole with rectangular sideways.If the lines after flag formation moves down, it cannot be considered as flag pattern.
It take seven to form a flag,volume is expected to be high in break out.Long position is formed during flag pattern.
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