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Shiva 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, 1 month ago
Weekly traders should use candle stick – it is for short term analysis
High volume indicates the trend reversal pattern.
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Shiva replied to the topic What is Candle stick analysis? Its evaluation and it real time application? in the forum The Simple Candlestick Analysis 7 years, 1 month ago
Candle stick analysis is one of the oldest technical analysis used by Japanese to understand demand and supply.
We can find what happened on a particular day tops , bottom and starting price and ending price how things are changing now.
The green body shows it is bullish and a red body shows it is bearish.
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Shiva replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 1 month ago
3~4 days (within a week)
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Shiva replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 1 month ago
Double top and bottom : When the trend crosses the neckline with high volume breakout the we can buy in double bottom pattern and sell in double top pattern and the period should be min 20 days
Head and shoulder : When the trend goes below the neckline with high volume then we can create a short position
Cup : Long position can be created when…[Read more]
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Shiva 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, 1 month ago
Triangle pattern are in triangle shape and it indicates a trend consolidation and it is converged
Spot 5 waves with A , C and E being the bottom and B and D being the top and connect the two top and extend it similarly connect 2 bottoms and extend ti to form a triangle shape.
It takes min 45 days to form the triangle
The breakout should…[Read more]
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Shiva 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, 1 month ago
A flag pattern is a graphical representation of a flag look, ie a steeper pole and a rectangular cloth representing the Flag.
1. The pole should be in the early phase and should be steeper as possible to show the aggression of the existing player in case of positive pole generally 75* to 80*
2. Rectangular price pattern happens after the steeper…[Read more]
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Shiva 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, 1 month ago
The double top is a pattern where 2 equivalent tops are formed in the duration of 20 days to 1 months time
Conditions
1. Two equivalent tops to be identified
2. Minimum duration 20 days
3. High volume in the second top around the neckline
4. The trader should go short if the price goes below the neckline
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Shiva 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, 1 month ago
Double BOTTOM is qualified when there are 2 equivalent bottoms
Duration between the 2 bottoms should be 20 days to 1 month
High Volume should be present at the second bottom ie the neckline
Long position to be created when it crosses the neckline.
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Shiva 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, 1 month ago
The cup pattern is generally accumulation pattern and not very aggressive
Conditions :
1. The cup shape pattern should be visible probably the rounding bottom to take place
2. The stock movement should be very low, it is de-coupled with the market which is a sign of stock accumulation
3. No aggressive buying takes place , when it comes to the…[Read more]
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Shiva replied to the topic What Should be Entry price, Exit Price and Stop loss for Head & Shoulders in the forum Price Patterns and its characteristics 7 years, 1 month ago
Entry price should be the price below the neck line
Stop loss should be equal to the right shoulder or the previous top
Exit should be difference between stop loss and buying price.
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Shiva 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, 1 month ago
Inverted Head and Shoulder is the opposite of normal of Head and Shoulder ie Normal Head and shoulder is distribution pattern and inverted Head and shoulder is Accumulation pattern.
The duration is again 3 months
In this the volume should be high in Left shoulder and high during right shoulder where the buying will be higher
We can create a…[Read more]
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Shiva 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, 1 month ago
It is a distribution or accumulation pattern. We have to identify Shoulder – Head – Shoulder where the head is the tallest
It should take min 3 months to qualify the distribution pattern.
To determine the bearish trend
Volume should be high in the left shoulder which shows lot of buying and selling is happening and it is generally due to the…[Read more]
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Shiva replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 1 month ago
The Dow Theory gives the trend ie positive or negative and does not say about the quality and the nature of the trend and we need to take 2 years of data to analyse and it is best suited for long term investment.
The price pattern gives the characteristics behind the price movement , takes the input from Dow Theory and gives early signals about…[Read more]
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Shiva replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 1 month ago
The price pattern gives the characteristic behind the price movement and it gives early signals of the price behaviors by following the Dow principle ie based on demand and supply.
The various price pattern is double top and double bottom ; Head and shoulder ; CUP pattern ; flag and triangle pattern
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Shiva 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, 1 month ago
Charts used in line charts
Minimum look up period is 2 years
Duration of trend forecasting is 2 to 3 months.
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Shiva 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 7 years, 1 month ago
The major critics is that it can’t be used for daily or intraday trading since it is good only for deriving the trend ie bullish or bearish and does not offer anything on the pricing behavior.
It is the basic for all the analysis
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Shiva replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 7 years, 1 month ago
1. Open the price chart use daily charts for minimum 2 years
2. Identify major tops (Selling Zone) and bottoms (Demand Zone). The top is higher top (HT) because it is higher than the previous top and lower top (LT) because it is lower than the previous top similar is the case with Higher bottom (HB) and lower Bottom (LB)
3. Higher Bottom -…[Read more]
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Shiva replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 1 month ago
Support – Here the buyers are strong and will not allow the price to fall below a bullish trend is maintained.
Resistance – Here the sellers are strong and will not allow the price to increase a Bearish trend is maintained.
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Shiva replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 7 years, 1 month ago
Mr. Charles H Dow is one who absorbed the market instead of the company. He started to study the demand and supply because reaching demand and supply is through price and volume which is transparent to every body.
Using Dow Theory we can derive the trend (ie) if Demand > supply then it is Bullish and if Supply > Demand then it is Bearish. It can…[Read more]
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Shiva replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years, 1 month ago
Buy – Higher top and higher bottom with volume is Bullish trend. This should be a good volume in the recent day and this volume is nothing but the strength which signifies the price and create a long position with the expectation for the price to go up when it crosses the previous top.
Sell – Lower top and lower bottom with volume is bearish…[Read more]
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