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SRINIVASAN S 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, 6 months ago
Area gap— appears inside trading zones, volume will be low, gap may be filled in future
Breakout gap–breakout appears after trading range, the may not be filled, traded volume will be high.
Runaway gap– occurs near the middle of an identified trend and is used to signal an increase in trend’s intensity.
Exhaustion gap—it appears after…[Read more]
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SRINIVASAN S replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 7 years, 6 months ago
Gap in candle stick chart is an unfilled space or interval. On technical analysis, a gap represents an area where no trading takes place. In downward trend, a gap occurs when lowest price on one is higher than the highest price of the next day.
In upward trend, a gap is produced when the highest price on one day is lower than the lowest price o…[Read more]
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SRINIVASAN S 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, 6 months ago
Gaps are areas in chart where the price of stock moves sharply up or down with littler or no trading in between. Chart shows in the normal price pattern which can be easily identified in candle sticks.
Type of gaps are Area gap, Breakout gap, Runaway gap and Exhaustion gap.
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SRINIVASAN S 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, 6 months ago
Engulfing candle stick pattern, bullish or bearish, it is a reversal trend. Identified near tops and bottoms, resulting in short term change in sentiments. Bullish pattern tells buyers have overwhelmed seller in the market thus engulfing previous day open and closing.
Bullish Buy– if price goes higher than the price of highest price of last 2…[Read more]
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SRINIVASAN S 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, 6 months ago
Candle stick analysis used by weekly traders. More volume in candle stick patterns end up in trend reversal.
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SRINIVASAN S 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, 6 months ago
Hammer—occurs after significant price fall, long tail should 2 times of body size with high trade volume expected. Body should be green. Returns are high, almost two times of risk taken. (bullish)
Hanging man-occurs after significant price rice. Body should be red. (bearish)
Both hammer and hanging man are popular because returns are al…[Read more]
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SRINIVASAN S replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 6 months ago
General forecasting duration using candlestick analysis is one week
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SRINIVASAN S 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, 6 months ago
Candle stick technical analysis introduced by Japanese. It has four details to show- stock price open, close , high and low on a trading day. Along with details of volume traded, we can identify four types of patterns-engulfing, piercing, doji , hammer/hanging man. It is very much useful for weekly trading.
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SRINIVASAN S replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 6 months ago
DOJI after bearish trend is morning star. Create Long Position
Buy at highest price on next day of DOJI & Stop loss at Doji day low price. Profit will be 1.5 to 2 times of risk taken.
DOJI after bullish trend is evening star. Create short position
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SRINIVASAN S replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 6 months ago
DOJI after bearish trend is morning star.
DOJI after bullish trend is evening star.
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SRINIVASAN S replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 7 years, 6 months ago
DOJI is neutral; thin body & star shaped candle with high volume indicates trend reversal (stock open and close at same level)
It is powerful & returns will be 1.5 to 2 times of risk taken. Sideways movement of DOJI should be ignored.
DOJI after bearish trend is to buy/long position & DOJI after bullish trend is to sell/short position
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SRINIVASAN S 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, 6 months ago
Piercing pattern is reversal pattern for weekly traders.
Conditions: During negative trend pattern, green body to cover the low of previous day; to cover 50% of previous day; upper tail should be small in size; more volume observed in piercing band
Position: Long, BUY at highest of last two days; stop loss at previous day low; Selling target:…[Read more]
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SRINIVASAN S 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, 6 months ago
Piercing pattern is reversal pattern for weekly traders.
Conditions: During negative trend pattern, green body to cover the low of previous day; to cover 50% of previous day; upper tail should be small in size; more volume observed in piercing band
Position: Long, BUY at highest of last two days; stop loss at previous day low;
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SRINIVASAN S 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, 6 months ago
Inverted Head and Shoulder pattern is Bullish trend.
Formation of Left shoulder-downward head(inverse of head Right shoulder during 3 to 4 months time; high volume notices in left/ first shoulder and low volume in right/second shoulder. Once price crosses previous higher top, long position to be created.
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SRINIVASAN S 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, 6 months ago
Rounding bottom/cup pattern indicates accumulation of stock for longer period. Long term reversal pattern, moves from bearish to bullish.
Correlation of market movement will be low. When volume starts filling, long position to be created
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SRINIVASAN S replied to the topic Which chart types are suitable for understanding Price patterns namely CUP, Flag in the forum Stock market questions and answers 7 years, 6 months ago
Cup Pattern- line chart–long position to be created
Flag Pattern–even though line chart will give side ways moving pattern( for 3 to 7 days), further we have to confirm for low volume during flag formation and this can be identified clearly in candlestick chart
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SRINIVASAN S replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 6 months ago
Application of Price Patterns
Double top—create short position; Double bottom–create long position
Head and shoulder—create short position
Cup pattern & Flag pattern—create long position
Triangle pattern—-create long or short based on breakout
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SRINIVASAN S 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, 6 months ago
Double top price pattern is used for creating short position.
Equivalent two tops formation within one moth period and volume should be high at second high top, indicates bearish trend. Short position should be created when price goes down to previous neck line.
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SRINIVASAN S replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 6 months ago
Even though Dow theory gave trend of a stock, it failed to give character and strength of a stock.
Price patterns, while doing technical analysis, a chart pattern is a distinct function on a stock chart that creates signal or sign of future movements. Patterns is helpful in identifying current trends and trend reversals and to trigger to buy…[Read more]
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SRINIVASAN S replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 6 months ago
Even though Dow theory gave trend of a stock, it failed to give character and strength of the stock.
Price patterns, while doing technical analysis, a chart pattern is a distinct function on a stock chart that creates signal or sign of future movements. Patterns is helpful in identifying current trends and trend reversals and to trigger to buy…[Read more]
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