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Sri Raghava Chakravarthy.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, 11 months ago
A doji may be a morning star if it is formed after price fall. <span style=”line-height: 1.5;”>A doji may be evening star if it is formed after price increase. Volume in doji indicates trend reversal accordingly short position or long position has to be created. </span>
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Sri Raghava Chakravarthy.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, 11 months ago
Hammer – When the lower side tail is two times longer than the body then it is known as Hammer man
It is a bullish trend and time to create a long position.
Hanging Man – When the upper side of the tail is two times longer than the body then it is known as Hanging man.
It is a bearish trend and time to create a short position
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Sri Raghava Chakravarthy.S 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
Buy when the price goes up and sell when the price goes down.
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Sri Raghava Chakravarthy.S 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 a price pattern in which there are two equal bottoms.
Conditions
1. Two equivalent bottoms.
2. Duration between the bottoms should be 20 days atleast.
3. Volume should be high at second bottom and at the breakout point.
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Sri Raghava Chakravarthy.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, 11 months ago
The reverse pattern of General Head and Shoulder is called Inverted Head and Shoulder, and it is Accumulation Pattern.
Conditions
1. The inverted head must be the lowest among the recent price action.
2. Volume should be high in the left shoulder.
3. Duration is three months.
4. Volume is low in right shoulder.
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Sri Raghava Chakravarthy.S 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 a pattern that is usually formed when institutions are trying to move out.
Conditions
1. The head should be highest among the recent price action
2. Volume should be highest during left shoulder.
3. Duration to form head and shoulder pattern is minimum 3 months.
4. Volume in right shoulder should be as low as possible.
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Sri Raghava Chakravarthy.S 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 just gives us the trend but price pattern tells us the time to enter and exit market.
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Sri Raghava Chakravarthy.S 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
The trend of price movement in a line chart forms a triangle with a duration of minimum 45 days, then it is called Triangle Pattern.
Conditions
1. 5 wave corrective pattern in triangle shape.
2. The triangle area should be minimum 1.5 months.
3. Triangle breakout expected around 70 % zone.
4. Volume required to confirm breakout.
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Sri Raghava Chakravarthy.S 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
A rectangular flag should be created with minimum 3-7 days on analyzing trend is called Flag Pattern.
Conditions
1. Steeper pole.
2. Then rectangle shaped sideways movement.
3. 4-7 days duration.
4. Volume is expected to go high during breakout.
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Sri Raghava Chakravarthy.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, 11 months ago
The movement of price depicts a cup like structure thus making it cup pattern.
Conditions
1. It takes long time to form usually 6 months or more.
2. The volume should be high in the first half.
3. The volume is expected to be as low as possible during the rounding bottom.
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Sri Raghava Chakravarthy.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, 11 months ago
Double top is a price pattern with equivalent tops.
Conditions
1. Two equal tops.
2. Volume should be high at the second top or after the second top.
3. Duration between the tops should be minimum twenty days.
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Sri Raghava Chakravarthy.S replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 11 months ago
The movement of price when depicted in charts some times form pattern. They help to analysis the price movement.
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srinivash c g and Sri Raghava Chakravarthy.S are now friends 7 years, 11 months ago
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Sri Raghava Chakravarthy.S 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, 11 months ago
Line chart is used.
The minimum look up period is 2 years.
Duration of trend should be atleast 2-3 months.
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Sri Raghava Chakravarthy.S replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 7 years, 11 months ago
If the top is higher than previous top and volume traded be high at the level of previous top, then it is bullish.
If the bottom is lower than the previous bottom and the volume traded be high at the level of previous bottom, then it is bearish.
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Sri Raghava Chakravarthy.S replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 11 months ago
Support means if Demand > Supply, we have to go for long position.
Resistance means if Supply > Demand, we have to go for short position.
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Sri Raghava Chakravarthy.S 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, 11 months ago
Need more data.
Intraday trading is not possible.
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Sri Raghava Chakravarthy.S replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years, 11 months ago
When price goes higher than previous high shares can be bought.
When price goes below previous low shares can be sold.
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Sri Raghava Chakravarthy.S replied to the topic Since dow theory is only to find the trend, cant we keep target and stop loss? in the forum Stock market questions and answers 7 years, 11 months ago
No it is not possible.
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Sri Raghava Chakravarthy.S replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 7 years, 11 months ago
It was introduced by Charles H Dow in 19th century.He studied about market rather than company. Dow theory is good for deriving trend for demand and supply whether it is bullish or bearish.
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