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Shiva replied to the topic Why the positional analytical methods are not followed in intraday analysis? in the forum Intraday Analysis for Day Traders 7 years ago
Positional analytical methods is for long term based on the trend charts and price charts analysis whereas in intraday analysis is for short term and is it based mainly on the market sentiment, global market, FII participation and market depth and breadth etc.,
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Shiva replied to the topic What is the process of identifying momentum stock in intraday? in the forum Intraday Analysis for Day Traders 7 years ago
Top down approach is used to identify the intraday price movement
1. Look for global market and identify as positive or negative (Asian market and European market)
2. Check FII activity and Indian market (Nifty)
3. Check market breadth (advance/ decline ratio) and depth (Turnover details)
4. Based on the above select 2 sectors responsible for…[Read more]
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Shiva replied to the topic What is intraday analysis? How it is different from positional analysis in the forum Intraday Analysis for Day Traders 7 years ago
Intraday analysis is done to do trading within the day of buying and selling. In this analysis we follow the global market, FII presence, market sentiment etc., whereas in positional analysis we see the trend charts, price patterns and then decide the future price or trend
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Shiva replied to the topic Why do we need to close the intraday position on the same day? Is it mandate? in the forum Intraday Analysis for Day Traders 7 years ago
It is not mandatory to close the intraday position, but is always better to minimize the risk of uncertainty because the next day is different it might be anything high or low, so it is better to close on the same day.
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Shiva replied to the topic Do global markets impact the intraday price movement? How? in the forum Intraday Analysis for Day Traders 7 years ago
Yes. The global markets impact the intraday price movement because it operate at different times and this is an emotional market. The global market also decides the participation of FII.
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Shiva replied to the topic What is the IDEAL time to trade intraday? in the forum Intraday Analysis for Day Traders 7 years ago
The ideal time to trade is between 10.00 AM to 11.30 AM and 2.00 PM to 2.45 PM
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Shiva replied to the topic How do we use Fibonacci retracement to identify support and resistance zone? in the forum Technical Indicators to understand market trend 7 years ago
The Fibonacci retracement is used to identify a trend reversal. Identify the peaks and low of the chart and draw the lines of 100%, 62%, 50%, 38% and 23%.
After the price touches 100% it is expected to retrace back at 62% then 62% is called the resistance zone and 100% is called the support zone. If does not reverse then it look at 38% as the r…[Read more]
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Shiva replied to the topic What is the logic behind golden Mean – Fibonacci Series? in the forum Technical Indicators to understand market trend 7 years ago
Fibonacci series is the sequence of numbers starting from 0 to 1 and each number is the sum of the previous number and it goes infinitely. The characteristic of this is each number is 1.618 greater than the preceding number and this ratio is Fibonacci ratio or the golden mean.
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Shiva replied to the topic What is RSI? How to identify the buying zone? in the forum Technical Indicators to understand market trend 7 years ago
RSI – Relative strength index. It works exceptionally well in the side wards movement, so this is a non trending indicator.
RSI above 70% indicates lot of strength but the moment it comes below 70% mark to the below level which shows a significant buying it over bought and RSI below 30% indicates weakness, lot of selling is happening and at some…[Read more]
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Shiva replied to the topic What is Moving Average? in the forum Technical Indicators to understand market trend 7 years ago
Moving average is used for short term which is 21 days ie for 1 month and works exceptionally well in the trending zone and not well in non-tending zone.
Using moving average we can reduce the top and bottoms and it gives a smoothing effect and it is easy to see the wave if the prices are moving up and down. If the current price moves above the…[Read more]
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Shiva replied to the topic What is called technical indicators? How it is different from other analysis? in the forum Technical Indicators to understand market trend 7 years ago
Technical indicators are algorithm and are ready made analysis used to assist and reduce human job. There are indicators used during the trending period called the moving average and indicators used during the non-trending period is RSI (Relative strength index)
No algorithm in the world will work every week ever month across the years, so we can…[Read more]
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Shiva replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 7 years, 1 month ago
The GAP appears due to the difference in the trading range. Yesterday’s closing price and today’s opening price there will be a difference, this difference is called GAP. This GAP indicates the strength of the trend and indicates the phase of the trend if it is in the beginning or in the exhaustion.
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Shiva replied to the topic What do we interpret using GAP ANALYSIS? in the forum GAP Analysis and its interpretations 7 years, 1 month ago
Using GAP analysis we can find the strength of the market. It will say that the price are moving up is because of aggressive buying or it is moving down because of aggressive selling etc., It helps to locate the correct phase of the trend ie early stage, breakout stage, runaway stage etc.,
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Shiva 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 7 years, 1 month ago
Area GAP – It is in the non-trending area between the demand Zone and supply Zone. The Gap is not having any significance & we expect the GAP to be filled and here in the non-trending area either buyer nor seller is powerful
Breakout GAP : A GAP appears because the price is moving out of the range ie the breakout and it is followed by a good…[Read more]
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Shiva replied to the topic How to name a GAP? What are Four Types of GAP? in the forum GAP Analysis and its interpretations 7 years, 1 month ago
The difference in the trading range between yesterday and today is called a GAP
The types of GAP are
Area GAP – if it serves the condition as per area gap
Breakout GAP – Shows some strength
Runaway GAP – The squeezing is happening
Exhaustion GAP – The trend is almost terminated
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Shiva 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 7 years, 1 month ago
Hammer man is a sign of strength / man with optimism and it is a trend reversal pattern and appears with good volume and it is bullish.
Hanging man is a negative / man with pessimism and it is bearish .
Hammer Man :
Hammer should appear after a significant price fall to effect a trend reversal .
The lower tail should be twice the length of…[Read more]
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Shiva replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 1 month ago
Morning star:
It appears after a dark night (recent price fall) but gives a bright day that shows positive.
Volume should be high to indicate a trend reversal
I can buy the stock on the next day if the price goes above the DOJI high
I can sell the stock on the next day if the prices goes below the DOJI low.
Evening Star:
It appears after a…[Read more]
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Shiva replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 7 years, 1 month ago
Doji means neutral (ie) stock opens and closes almost at the same level.
It is a trend reversal pattern if there is a recent price fall or increase with volume and no side ward movement
If a DOJI appears after a price fall and there is a trend reversal with increase in volume it is called Bullish DOJI or Morning star
If a DOJI appears after a…[Read more]
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Shiva 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, 1 month ago
The piercing pattern is a trend reversal pattern
Qualification:
1. There should be recent fall in price trend
2. The green body should cover previous days lowest price and should atleast 50 to 70% of the previous days body, gap down opening should be witnessed.
3. The upper tail should be small in size
Buy: We can buy if the price goes above…[Read more]
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Shiva 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, 1 month ago
The Engulfing pattern is the trend reversal pattern and engulfing is nothing but covering the previous body
If the latest green body covers the entire red body then it is positive engulfing and vice versa
Condition to qualify
1. There should be a trend of recent fall in the price
2. The latest green body should cover the entire red body of the…[Read more]
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