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suguna 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 8 years, 3 months ago
It is a line chart used to study the market trend. The head in between the right and left shoulder
Volume at the left should be higher than the right shoulder. duration for the formation may take minimum 3 months.
long position can be created at the neck portion
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suguna 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 8 years, 3 months ago
The major criticism are it is helpful for the long term investment.
the market trend can be predicted after a long period of observation. It cannot be used for intraday trading
It is reliable to certain extent that the returns in the trade can be 51% compared to other types of analysis. so it remains on top of any other analysis
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suguna replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 8 years, 3 months ago
It is the oldest theory used for technical analysis of the market trend. Line chart is used to find out the trend of the market it gives an idea as to when to buy and when to exit.
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suguna replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 8 years, 3 months ago
first identify the higher tops and higher bottoms.
from higher bottom to higher top create long position buy stock after observing the volume
from lower top to lower bottom crate short position sell stock after observing the volume
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suguna 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 8 years, 3 months ago
line chart can be used. Minimum look up period is 2 years. duration is 2 to 3 months
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suguna replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 8 years, 3 months ago
Using dow theory first the higher tops and higher bottoms should be marked.
Higher bottom – higher top the trend is bullish we can buy the stock . There should be considerable increase in the volume also
Higher top -to higher bottom the trend is bullish can sell the stock . There should be incease in the volume also
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suguna replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 8 years, 3 months ago
Support when the buyers are more then the higher bottom formed is support it indicates the bullish trend of the market
Resistance when the sellers are more then the lower bottom is formed is resistance It indicates the bearish movement of the market
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suguna replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Fundamental analysis need the data based on the detailed study of a particular company like the business model, clients , project, policies of the company future plans etc etc
Technical analysis is based on the price movement which depends on demand and supply
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suguna replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
we need to do analysis because it helps us to plan the trade we can fix the entry and exit of the trade
we can follow the price pattern and analyse using the various charts before commencing the execution
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suguna replied to the topic What is technical analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Technical analysis isthe study of market trend using charts which enables us to determine the demand and supply
volune and price movement.though it is not used to analyse the performance of the company
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suguna replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 8 years, 3 months ago
The demand and supply of shares drive the stock price
The fluctuations in the demand and supply of shares causes the price to change often
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suguna replied to the topic What are different types of charts? in the forum Understanding the Price Movement 8 years, 3 months ago
line charts, bar charts, and candlestick charts
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suguna replied to the topic price movement in the forum Stock market questions and answers 8 years, 3 months ago
The variations in the price of the shares on a particular day is called price movement.it is because of the demand and supply
if the demand is > supply then the prices will go up ,If demand is < supply he the prices will come down
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suguna replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
It is the study of the company in a detailed manner . it needs both qualitative as well as quantitative analysis.All cannot do this only the stronger hands can do this. It is very effective and powerful.It involves lot of time and huge money
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suguna replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Pros It helps to find out the market direction. by observing we can find out demand and supply.
it doesnot involve time or money.it works good for short term investments
cons it is not accurate or powerful like fundamental analysis. risks are more in long term investments.
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suguna replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 8 years, 3 months ago
Pros It is very accurate. very good knowledge about the company is possible,
Less risk and good returns is possible
cons It is not poossible for all to do this analysis only stronger hands can do this it involves lot of time and huge money
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suguna replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 8 years, 3 months ago
People avoid penny stocks because it is low priced. The performance of the company cannot be predicted.stock maipulation is possible because of less volume
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suguna 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 8 years, 3 months ago
It is around 2 to 3 lakhs crores. sometimes the stronger hands having huge number of shares of a particular company may manipulate the stock price of that company
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suguna replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 8 years, 3 months ago
A trader need not pay the full amount for the trade as in the case of spot market.
in case of futures or options he has to pay only the premium or caution deposit. the risk can be minimised by analysis . the loss may not be too heavy
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suguna replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 8 years, 3 months ago
Exchange collects the caution deposits from buyer and seller and premium from the seller in the case of futures and options respectively
It settles the disputes between the traders by using the caution deposit
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