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SHREYANS BOTHRA wrote a new post, Price patterns 6 years, 9 months ago
Types of patterns :
1. head and shoulder
2. cup patterns.
3. flag patterns
4. triangle patterns. -
SHREYANS BOTHRA replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 6 years, 10 months ago
Dow theory was invented by Charles H. Dow. It is one of the oldest and first concept to understand the share market. It determines the nature of buyer and seller by two very important tools which is available in the market i.e. price and volume. These two tools can be seen by all the persons in the market.
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SHREYANS BOTHRA 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 6 years, 10 months ago
A minimum of 2 years of line charts can be considered for Dow theory and duration for bullish or bearish trend should be minimum 20 working days.
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SHREYANS BOTHRA replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 6 years, 10 months ago
Higher Bottom Higher top sequence – Bullish – Create long position
Lower Bottom Lower sequence – Bearish trend – Create short position -
SHREYANS BOTHRA 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 6 years, 10 months ago
Critics:
1. It does not show the on time results.
2. Does not show accurate results for intraday trading.
3. Does not show what happens in that particular trading day.Pros:
1. It determines the price trend for the future.
2. Easy to understand the nature of buyer and seller.
3. Good for long term trading. -
SHREYANS BOTHRA replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 6 years, 10 months ago
For Dow theory, a minimum of 1 year chart should be studied. Identify the tops and bottoms on the chart, mark them as higher bottom or lower bottom compare to the previous and vise versa for the tops. Find out the sequence of the tops and bottoms. If it is:
1. Higher Bottom higher top sequence, it means it is bullish and you can create long…[Read more]
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SHREYANS BOTHRA replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 6 years, 10 months ago
Support and resistance are the concept of technical analysis where the trend reverses at a particular point of time without a breakthrough. When the falling prices began to rise after reaching a particlar point, that area is called support i.e. buyers are active to trade at that particular price for that particular stock and vise versa for…[Read more]
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SHREYANS BOTHRA replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 6 years, 11 months ago
Dow theory uses the price and volumes as their weapon to forecast the trend. It is one oldest concept used for practicing technical analysis. It determines the buyers and sellers zone.
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SHREYANS BOTHRA 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 6 years, 11 months ago
Dow theory, line charts are more suitable for a period of min. 1-2 yrs.
A min of 20 trading days is required to forecast the trend.
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SHREYANS BOTHRA replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 6 years, 11 months ago
Find the sequence of the chart. If the sequence is:
1. Higher top and higher bottom. The trend is bullish. Make Long positions in the market
2. Lower top and lower bottom. The trend is bearish. make short positions in the market
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SHREYANS BOTHRA replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 6 years, 11 months ago
Buy – Higher top and higher bottom. This is called bullish.
Sell – lower top and lower bottom. This is called bearish
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SHREYANS BOTHRA 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 6 years, 11 months ago
Dow theory is used for longer terms investment. It does not give accurate results for short term or intraday trading. it is useful for people who have holding capacity for longer periods. It is slow compare to other theories and methods.
However, it is one of the old and golden concepts as it gives proper support and resistance. It gives proper…[Read more]
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SHREYANS BOTHRA replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 6 years, 11 months ago
Support is a level where the price finds it support as it falls.
Resistance is opposite to support. It finds its resistance as it rises.
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SHREYANS BOTHRA replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 6 years, 11 months ago
Fundamental analysis is a process of understanding the company in detail. it requires lot of time and have to obtain various details regarding the company balance sheet, marketing strategy, management, pricing, factors influencing the price, various policies, etc. etc. etc. it is a long term process.
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SHREYANS BOTHRA replied to the topic What is technical analysis? in the forum Understanding the Price Movement 6 years, 11 months ago
In technical analysis, we follow the market rather than forecasting it. we use various methods, theories and price patterns to determine the market trend.
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SHREYANS BOTHRA replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 6 years, 11 months ago
Pros:
1.Stronger hands
2. Gives a clear view of the company in the future.
Cons:
1. Difficult to obtain data.
2. insider Trading is punishable according to norms of SEBI
3. Does not derive the market trend
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SHREYANS BOTHRA replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 6 years, 11 months ago
Pros:
1. Prices and volume are accessible to all
2. Can derive the market trend based on the price patterns and charts and are confident enough when to invest and on whom to invest.
3. Calculative risk.
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SHREYANS BOTHRA replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 6 years, 11 months ago
For fundamental analysis, Lots of quantitative and qualitative data is required such as company balance sheet, sales, profit, factors influencing the price, its marketing strategy, management, etc. which are very difficult to obtain and does not conclude whether the market trend. Whereas in technical analysis, price and volume plays a major factor…[Read more]
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SHREYANS BOTHRA replied to the topic What are different types of charts? in the forum Understanding the Price Movement 6 years, 11 months ago
There are three types :
1. line charts
2. bar charts
3. Candle sticks charts
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SHREYANS BOTHRA replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 6 years, 11 months ago
Penny Stocks are highly speculative. The risk is greater compared to other stocks as there is no past history and it is highly volatile. They are traded at very low rates
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