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Sreeram Chellappa M A 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, 11 months ago
Based on the position in the trend the Gap is named. 4 types are: Area Gap, Breakout Gap, Runaway Gap and Exhaustion Gap.
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Sreeram Chellappa M A replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 7 years, 11 months ago
Gap is todays opening price varies from Yesterdays closing.
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Sreeram Chellappa M A 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, 11 months ago
Consolidation(Area Gap): is found inside the trading range, Area Gap may be Filled in Near term, Generally low volume.
Breakout: Breakout gap appears when price gives breakout from trading range, may not be filled in Near term, Volume to be higher.
Runaway Gap: Post Breakout Runaway Gap appears. Inside the area (Runaway zone) Volume is…[Read more]
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Sreeram Chellappa M A replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 11 months ago
Morning Star: Pattern consists of three candles, one Doji and Bullish candle in right and Bearish candle in Left showing upward trend. Opposite is morning star.
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Sreeram Chellappa M A 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, 11 months ago
Hammer’s lower tail should be 2 times the Body and is Bullish. Where as hanging man is Bearish and Bearish. Volume to be Higher during Hammer day. Buy at trend reversal
Hammer is Bullish reversal pattern, reversal to be validated by volume.
Hanging Man is identical to hammer with upper long tail. Sell at trend reversal.
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Sreeram Chellappa M A replied to the topic What do we interpret using GAP ANALYSIS? in the forum GAP Analysis and its interpretations 7 years, 11 months ago
Gap analysis show potential strength of the trend and overnight impact. It will not show direction.
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Sreeram Chellappa M A replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 7 years, 11 months ago
Doji is created when opening and closing are the same level, sign of Breaking out. Based on the volume and past trend we can decide on the further movement and take position.
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Sreeram Chellappa M A 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, 11 months ago
Engulfing could be Bullish or Bearish. Latest Full body (Bullish) should cover the previous (Bearish)body, Reverse for Bearish engulfing.
Conditions: Recent Fall in Price to Be witnessed, Slight increase in Volume in any two days. Entry at High of Bullish candle and Exit (SL) at Low of bullish candle.
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Sreeram Chellappa M A 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, 11 months ago
Piercing Pattern forms after a recent Price Fall or Up, which is bullish or bearish piercing pattern.
Condition: The Body should cover previous day’s Low / High. Today’s Body should cover 50% of Previous days Body. Upper tail should not be high. Buy at High of Previous day and sell at low of Previous day which is SL.
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Sreeram Chellappa M A 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, 11 months ago
Candle Stick analysis is used by Japanese for Rice Trading. It shows 4 parameters, Open, Close, High and Low. Shows Bullish and Bearish Trends with Reversal patterns.
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Sreeram Chellappa M A replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 11 months ago
Forecasting Duration is weekly.
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Sreeram Chellappa M A 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, 11 months ago
Candle Stick Analysis is used for Short term Trading, 5 days to a week. Volume Decides Body of the Candle,
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Sreeram Chellappa M A 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, 11 months ago
Double top is trend reversal from Bullish to Bearish. The two tops will be equal after a rally with second top lower than the first top supported by Hi Volume.
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Sreeram Chellappa M A replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 11 months ago
We can assess Demand and Supply based on patterns, If Demand is Higher than Supply, Uptrend is noticed so Buy, If Supply is higher than Demand then sell in Down trend. Every pattern has got different conditions to buy and sell with Basic principle D>S = Buy and S > D + Sell.
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Sreeram Chellappa M A 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, 11 months ago
Double bottom is reversal from Bullish trend, Two troughs and in between is one small peak.
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Sreeram Chellappa M A 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, 11 months ago
Inverted Head & Shoulder is formed after a Bearish Rally, where as H & S is formed after a Bullish Rally. The conditions are similar to H & S.
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Sreeram Chellappa M A 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, 11 months ago
Head and shoulder is formed , When the market trend is in the process of reversal either from Bullish or Bearish trend.
Conditions: 1) Duration to form of each pattern is minimum one month. 2) The head should be the highest among the recent price action. 3) Volume during L Shoulder should be the highest 4) R Shoulder should be as low as possible.
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Sreeram Chellappa M A replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 11 months ago
Dow theory explains Demand and supply, Long Term. Where as price pattern is possible for shorter term
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Sreeram Chellappa M A 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, 11 months ago
Five wave corrective pattern narrowing at the tip forming a triangle structure.
Conditions: Minimum 1.5 months, Break out Expected around 70% zone, volume to support.
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Sreeram Chellappa M A 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, 11 months ago
After a steeper rise and thereafter stock is in a range bound before break out is called Flag Pattern.
Conditions: Steeper Pole, Rectangular shaped sideways movement, period is 10 to 15 days, Positive pole flag to give positive Break out and vice versa. Volume to be higher at the break out.
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