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Subash Raj replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 5 months ago
Price patterns are patterns created by the movment of a stock price for a given period. Various patterns include CUP Pattern, Double Top / Bottom, Flag Pattern , Triangle Pattern. Head& Shoulder.
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Subash Raj replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 5 months ago
Support and Resistance is similar to Demand and Supply. Support region is full of Buyers who produce the Demand , whereas Resistance is given by Sellers in order to sell the stock (Supply the Stock).
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Subash Raj 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, 5 months ago
It is not recommended to use Dow Theory to keep Target or Stop less as it is not accurate. You can use other Analysis to fix the Stop and Target Loss.
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Subash Raj replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 7 years, 5 months ago
Dow Theory was proposed by Charles Dow 100 years ago, that Supply and Demand determine the price movement of a stock.
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Subash Raj replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 7 years, 5 months ago
Bullish or Bearish market trend can be determined using Dow Theory.
Bullish Trend :
1) HB-HT with high volume indicates Bullish Trend
2) LT-LB with high volume indicates Bearish Trend.
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Subash Raj replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years, 5 months ago
HB-HT – Long Position
LT-LB – Short Position
The volume to be high along the neck position
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Subash Raj 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, 5 months ago
1) Dow theory requires 2 yrs minimum of price movements to predict the price pattern.
2) It is difficult to take long positions using Dow Theory
3) Market timing is not possible with Dow Theory
4) Support and Resistance cannot be judged using Dow Theory.
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Subash Raj 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, 5 months ago
Line chart is used with a minimum look up period of 2 yrs and duration of 3 months.
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Subash Raj replied to the topic price movement in the forum Stock market questions and answers 7 years, 5 months ago
I agree.
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Subash Raj replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 7 years, 5 months ago
Penny stocks are susceptible for price manipulation. So people avoid penny stocks.
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Subash Raj replied to the topic What is the average turnover in NSE only daily basis? Can any one manipulate the stock price? in the forum Understanding the Price Movement 7 years, 5 months ago
NSE turnover is more than 20,000 crores per day.
Stock manipulation is possible but it is illegal.
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Subash Raj replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
Pros :
Easy, less Time consuming, Proven methods, Short term gains and long term losses, tools are available
Cons :
Can go wrong,Risk / Reward ratio is high, Knowledge and Discipline is required.
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Subash Raj replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
Pros :
Sound knowledge of the company is good
Long term investment is safe
No emotional commitment to day to day price movements
Cons :
Expensive, Time consuming, Involves lot of man power, Requires lot of insider contacts which is illegal
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Subash Raj replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
Fundamental Analysis – Detailed information about the company which is too costly to get unless you are in the management of the company.
Technical Analysis – Data for Technical analysis is available in the stock market like LTP (Last Traded Price ) , LTV (Last traded Volume), Date etc.
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Subash Raj replied to the topic What is technical analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
Technical analysis is based on proven theories like Dow Theory, Head and shoulder Theory, Double Top , Double Bottom, Bearish / Bullish Engulfing or Piercing and Gap Analysis. These theories help us follow the price patterns. By understanding the price patterns we can minimize the risk and maximize the returns while buying or selling a stock.
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Subash Raj replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
We do analysis to follow the trend of the market. Following the trend is studying the logic behind share price movements.
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Subash Raj replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
Fundamental analysis is studying the company on the basis of valuation and performance.
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Subash Raj replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 7 years, 5 months ago
The Demand and Supply drives the stock price.
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Subash Raj replied to the topic What are different types of charts? in the forum Understanding the Price Movement 7 years, 5 months ago
Different types of Charts
Line Chart, Bar Chart, Candle Stick Chart, Area Chart,
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Subash Raj replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 7 years, 5 months ago
Equity market is a spot market where shares are traded.
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