-
S SUNDAR RAJAN replied to the topic What is called technical indicators? How it is different from other analysis? in the forum Technical Indicators to understand market trend 7 years, 4 months ago
Technical Indicator is a mathematical calculation based on price and/or volume. The result is used to predict the future prices. These values are added to charts to confirm the trend.
Moving average and Relative Strength Index (RSI) are mostly commonly used TIs.
-
S SUNDAR RAJAN 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, 4 months ago
Breakout gap: 1) Price give breakout from its trading range.
2) Area gap may not filled in the near term.
3) Occurs at the beginning of a market move after a consolidation phase.
4) Non-trending pattern becomes a trending pattern after a breakout gap.
5) Volume should be high on a gap day.
Runaway: 1) Occurs in trending area confirming the…[Read more]
-
S SUNDAR RAJAN 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, 4 months ago
Naming of Gap is done according to the trending area or non trending area in the chart.
Types of gap: Area, Breakout, Runaway, Exhaustion.
-
S SUNDAR RAJAN replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 7 years, 4 months ago
Gap is essentially an empty space between one trading period and the previous trading period. They usually form because of an important event that affects the shares like earning surprise etc.,
In short, difference between closing price of day 1 and opening price of day 2.
-
S SUNDAR RAJAN replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 4 months ago
7 days.
-
S SUNDAR RAJAN 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, 4 months ago
Traders who wish to hold their position in stock market for a period 1 to 7 days. Short term traders.
Traded volume confirms the trend reversal indication of candlestick patterns.
-
S SUNDAR RAJAN 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, 4 months ago
Hammer man candlestick: Appears in downward trend and signals trend reversal – bullish. Real body is near top of the candle. Lower tail should be minimum 2 times of its body size. Upper tail should be either invisible or very small in size. (Create long position)
Entry price: Wait for the price to cross high price of the hammer man
SL: Low…[Read more]
-
S SUNDAR RAJAN replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 4 months ago
Morning star: It is a candlestick that signals trend reversal from Bearish to Bullish and consists of 3 candles. (Long position)
Candle 1: Large Bearish candle
Candle 2: Small bodied candle (either Bullish or bearish) Open and closes below candle 1 (gap down)
Candle 3: Large Bullish candle that opens above Candle 2 (gap up)
Entry price: Wait…[Read more]
-
S SUNDAR RAJAN replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 4 months ago
Morning star: It is a candlestick that signals trend reversal from Bearish to Bullish and consists of 3 candles.
Candle 1: Large Bearish candle
Candle 2: Small bodied candle (either Bullish or bearish) Open and closes below candle 1 (gap down)
Candle 3: Large Bullish candle that opens above Candle 2 (gap up)
Entry price: Wait for the price to…[Read more]
-
S SUNDAR RAJAN 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, 4 months ago
Engulfing pattern is a tool used in technical analysis which identifies the trend reversal. It can be either bullish or bearish.
Day 1 body is fully covered by Day 2 body, it is said to be engulfing pattern.
Bullish engulfing : 1) recent fall in price should be witnessed
2) slight increase in trading volume is expected during these 2…[Read more]
-
S SUNDAR RAJAN replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 7 years, 4 months ago
Doji is a Japanese word meaning ‘Neutral’. This is a point where demand = supply. Appearance of doji after a significant rally indicates temporary pause.
If doji with high volume appears after a recent price fall, it signifies trend reversal. Buying can be considered.
If doji with high volume appears after a recent price increase, it signifies…[Read more]
-
S SUNDAR RAJAN 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, 4 months ago
Candlestick analysis is a tool used to identify the short term price movement (usually within a week).
Some of the important candlestick patterns used are Engulfing, piercing, doji, hammer, hanging man.
If the historical price patterns satisfy a certain conditions, we can predict the future price movement by applying the above candlestick patterns.
-
S SUNDAR RAJAN 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, 4 months ago
Piercing pattern is a trend reversal pattern normally viewed as a bullish candlestick reversal pattern.
Conditions:
1) Day2 body should cover the Day 1 low.
2) Day 2 body should cover at least 50% of the Day 1 body.
3) Upper tail should not be very long.
Entry price : Wait for the price to cross the Day 1 high price.
Stop Loss: Day 1 Low…[Read more]
-
S SUNDAR RAJAN replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 4 months ago
Dow theory indicates the price trend by considering the past data.
Price pattern considers the characteristics of the market and more reliable for future price prediction.
-
S SUNDAR RAJAN replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 4 months ago
Price patterns signaling bullish trend: Long buy can be considered, when the price crosses the neckline of the pattern. Selling to be initiated either when the share price touches Exit price or approaches stop loss.
Price patterns signaling bearish trend: Short selling can be considered, when the price crosses the neckline of the pattern. Buying…[Read more]
-
S SUNDAR RAJAN 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, 4 months ago
Inverted Head and shoulder pattern: Used to predict the reversal of current downtrend.
Conditions:
1) Significant rally prior to H&S structure.
2) Head should be the lowest among the recent price action.
3) Volume at L shoulder should be the highest.
4) Volume @ R shoulder should be low.
5) Duration: minimum 1 month to form H&S
6) Long…[Read more]
-
S SUNDAR RAJAN 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, 4 months ago
Double Top: Two equivalent Top formation. These peaks are separated by minimum price levels. Indicates the start of a bearish trend.
Conditions:
1) High volume in any one of the Top
2) Duration between 2 top should be a minimum of 20 days
-
S SUNDAR RAJAN replied to the topic What Should be Entry,Exit &Stop loss prices for triangle pattern – long position in the forum Stock market questions and answers 7 years, 4 months ago
Entry price: Higher Top price in the triangle
Stop loss: Lower Bottom price in the triangle
Exit Price (Target price): Entry price (+ or -) difference between entry price and SL
-
S SUNDAR RAJAN 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, 4 months ago
Triangle pattern: Distinct triangle shape created by two converging trend lines. The pattern is identified by drawing two trend lines that connect a series of sequentially lower peaks and higher peaks. Both trend lines act as barriers, but once the price breaches once of these levels, sharp movement often follows. Indicates both the Buyer and…[Read more]
-
S SUNDAR RAJAN 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, 4 months ago
A price pattern in which the line chart will look alike Head and shoulders (left & right). If the price movement satisfies the stipulated conditions, H&S formation is confirmed and the market awaits trend reversal (bearish).
Conditions:
1) Significant rally prior to H&S formation.
2) Head price level should be the highest
3) Traded Volu…[Read more]
- Load More