@t-ponnarasu
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T.PONNARASU 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, 11 months ago
Consolidation/area gap is formed within the non trending area with low volume, it may be filled in near term but if not it will lead to current trend breakout.
Breakout gap is formed in the trending zone with very high volume indicating a new trend and will not be filled inner term.
Runaway gap is formed after a breakout in trending zone with…[Read more]
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T.PONNARASU 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, 11 months ago
Consolidation/area gap is formed within the non trending area with low volume, it may be filled in near term but if not it will lead to current trend breakout.
Breakout gap is formed in the trending zone with very high volume indicating a new trend and will not be filled inner term.
Runaway gap is formed after a breakout in trending zone with…[Read more]
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T.PONNARASU replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 7 years, 11 months ago
Gap in price movement is formed when today’s price opens way ahead of previous day close, this doesn’t show direction of the trend but indicates strength of the trend.
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T.PONNARASU 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, 11 months ago
When the candle opens below/above the previous day low/high and covers 50% of the previous body with short upper/lower tail is called as piercing pattern, it appears very rarely but reliable.
When the green candle opens below the previous day low of red candle and manages to cover 50% of the red body with short upper tail then its called bullish…[Read more]
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T.PONNARASU 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, 11 months ago
Candle stick analysis is best suited for weekly traders and the high volume indicate strength of the trend reversal.
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T.PONNARASU 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, 11 months ago
The candle stick body covers the complete previous day body of opposite color with above average volume in any of the last two days is considered as engulfing pattern indicating trend reversal. It appears very often and reliable.
After a recent price fall if a green engulfing candle appears next to red one it indicates bullish trend reversal, can…[Read more]
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T.PONNARASU 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, 11 months ago
The candle stick body covers the complete previous day body of opposite color with above average volume in any of the last two days is considered as engulfing pattern indicating trend reversal. It appears very often and reliable.
After a recent price fall if a green engulfing candle appears next to red one it indicates bullish trend reversal, can…[Read more]
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T.PONNARASU replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 11 months ago
General forecasting duration for the candle stick analysis is for few days to a week time.
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T.PONNARASU 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
If Doji appears after a significant price fall its called as morning star, buy the stock when the price moves above the high price of doji day.
If Doji appears after significant price rally its called as evening star, short the stock when the price moves below the low price of doji day.
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T.PONNARASU replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 7 years, 11 months ago
Doji means neutral in Japanese. When the demand & supply is balanced the open & close price will be at the same level hence body of the candle stick pattern is very thin and the complete patterns appears like a star. It appears very rarely but very reliable and powerful trend.
After a significant price fall if the doji appears with high volume…[Read more]
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T.PONNARASU 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, 11 months ago
Candle stick analysis was invented by Japanese which gives more details of price movement in daily chart, it is reliable in analyzing trend reversals. Each candle will give open,close,high & low price of the day and if close price is above the open then the candle appears green indicating bullish and vice versa for bearish. It is best suited for…[Read more]
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T.PONNARASU 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 appears in candle stick chart pattern after a price fall with the lower tail twice the size of its body, upper tail will be very small or negligible. It shows a trend reversal of bullish sign with high volume and green in color, can take long position with target of 2x than the stop loss and this pattern appear very rarely but…[Read more]
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T.PONNARASU 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 appears in candle stick chart pattern after a price fall with the lower tail twice the size of its body, upper tail will be very small or negligible. It shows a trend reversal of bullish sign with high volume and green in color, can take long position and this pattern appear very rarely but reliable.
Hanging man appears in candle stick…[Read more]
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T.PONNARASU 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 appears in candle stick chart pattern after a price fall with the lower tail twice the size of its body, upper tail will be very small or negligible. It shows a trend reversal of bullish sign with high volume and green in color, can take long position it is also called as morning star by Americans. This pattern appear very rarely but…[Read more]
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T.PONNARASU 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 movement breaks out above the previous/recent tops with high volume.
Sell when the price movement breaks out below the previous/recent bottoms with high volume.
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T.PONNARASU 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
Triangle pattern is formed by 5 points A,B,C,D,E with a sequence of Bottom-top-high bottom-low top-high bottom, triangle shape is formed if a line is drawn connecting all tops and another line connecting all bottoms. It normally takes 45 days to form, breakout is expected at 70% of the triangle it can be either direction and needs to be qualified…[Read more]
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T.PONNARASU 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
It is formed by a steep pole of 75 to 80 degree generally formed in 2 to 3 days time and then rectangular flag pattern forms due to side ways price movement over a period of 3 to 7 days with low volume. If the pole is positive movement then the breakout will also be positive with high volume and gives good return in short time. Candle stick is…[Read more]
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T.PONNARASU 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
Its a price pattern when the price movement forms a cup shape or rounding bottom with lackluster volume over a period of 6 months to few years is called cup pattern. It is generally a accumulation pattern by strong hand over a period of time with range bound price movements generally decoupled from the market movement. When the supply is…[Read more]
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T.PONNARASU 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 & shoulder pattern forms in the line chart which appears like L shoulder, head & R shoulder. It is other wise also called as distribution pattern which forms over 3 months period and gives clear indication that some big player is liquidating his stocks.
After significant price rally left shoulder forms with high volume then a head forms with…[Read more]
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T.PONNARASU 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
Inverted head & shoulder pattern forms in the line chart which appears like inverted L shoulder, head & then a R shoulder
After a significant price fall, forms left shoulder with high volume and then a head with steep price movement where the price is the lowest in recent times at the bottom and then forming another right shoulder with very low…[Read more]
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