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Tr 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 8 years, 1 month ago
Flag pattern is representation of aggressive buyers and sustaining to survive at the seller zone.
Conditions to qualify as perfect FLAG:
1) Aggressive buying, no drop in the price
2) Side way sustenance in the seller zone
3) Breakout in the same trend as it was following
4) Duration 4-7 days
5) No volume at the sustenance level
6) Volume at the…[Read more] -
Tr 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 8 years, 1 month ago
Triangle pattern is mere representation of buying and selling forming the shape of triangle showing that both side aggressive buying and selling is taking place and a major breakout is expected to happen.
Conditions for a perfect triangle:
1) Huge volume throughout
2) Shape of triangle being formed after joining 2 tops and 2 bottoms
3) Duration…[Read more] -
Tr replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 8 years, 1 month ago
Price Patterns are the graphical representation of the buying and selling which forms certain patterns and hence inferring critical data about the trade and trend reversal.
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Tr replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 8 years, 1 month ago
Dow Theory requires 2 years of chart for analysis and gives calls for longer duration like 3 months.
Whereas Price Patters require at the max 1 year chart, some require a weeks chart and can give short term trades like flag, triangle. -
Tr replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 8 years, 1 month ago
Decision of buying or selling is post the pattern has been developed:
1) Double Top – Short when the 2nd top with high volume crosses the support bottom
2) Vice Versa for Double Bottom
3) Flag : Long when it crosses the resistance level
4) Triangle : When 70% of the triangle is done, breakout is expected and follow the market, long or short…[Read more] -
Tr 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 8 years, 1 month ago
Double Top is a Price Pattern where two tops are developed over the same zone in about 30-45 days.
Conditions for bearish trend:
1) Double Top
2) Duration of 30-45 days
3) High volume at the 2nd top -
Tr 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 8 years, 1 month ago
Two bottoms over the period of 30-45 days at the same zone.
Conditions for bullish trend:
1) High volume at the second bottom
2) Duration of 30-45 days -
Tr 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 8 years, 1 month ago
Cup Pattern / Rounding Bottom is a Price Pattern displaying slow accumulation at the buyer’s willing level.
Conditions for bullish trend are:
1) Rounding bottom
2) Gradual accumulation
3) Dislocated from the market, sudden spike in market wont affect the stock
4) Duration of 1 year or more -
Tr 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 8 years, 1 month ago
Head & Shoulder is a Price Pattern showing the accumulation or distribution by a stronger hand.
Conditions to determine bearish trend:
1) Head & Shoulder
2) High volume at the left shoulder
3) Low volume at the right shoulder
4) Duration of 3-6 months -
Tr 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, 1 month ago
Inverted Head and Shoulder – Accumulation Pattern – Bullish Trend
Conditions to determine the bullish trend:
1) Inverted Head & Shoulder
2) Low Volume at the lower shoulder
3) High Volume at the other (right) shoulder
4) Duration3-6 months -
Tr replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 8 years, 1 month ago
The market where the entire amount has to be paid to own the instrument (settlement takes place on the same day).
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Tr replied to the topic What is Equity market? in the forum Essentials of Trading Instruments 8 years, 1 month ago
The place where buying and selling of stocks takes place.
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Tr replied to the topic What are derivative instruments? in the forum Essentials of Trading Instruments 8 years, 1 month ago
Instrument whose value is derived on the basis of underlying asset
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Tr replied to the topic What is Futures contract? in the forum Essentials of Trading Instruments 8 years, 1 month ago
A contract which provides buyers and sellers the rights and obligation to make settlement on the basis of the deal strike today.
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Tr replied to the topic Why should a trader need the futures/call/put? in the forum Essentials of Trading Instruments 8 years, 1 month ago
TRADER needs call/put/futures option to trade with not the complete amount of money.
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Tr replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 8 years, 1 month ago
In OPTION contract the buyer has no obligation whereas in FUTURE it does.
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Tr replied to the topic What is call option and PUT option? Who decide the premium? in the forum Essentials of Trading Instruments 8 years, 1 month ago
CALL Option is the rights to buy.
PUT Option is rights to sell.
NO OBLIGATION is both the cases.
PREMIUM is decided by the buyer’s and seller’s. -
Tr replied to the topic What is the Pro / Cons of Equity market from traders’ perspective? in the forum Essentials of Trading Instruments 8 years, 1 month ago
Pros:
Investment can be made as long as the person wants.Cons:
Short positions only valid for the day.
Entire amount has been paid for buying the equity shares. -
Tr replied to the topic What is the role of exchange in derivative instruments? in the forum Essentials of Trading Instruments 8 years, 1 month ago
The exchanges plays the role of intermediary to safeguard the interest of the investor.
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Tr replied to the topic What are Margin / MTM / Premium / Strike Price / Expiry Date / lot size? in the forum Essentials of Trading Instruments 8 years, 1 month ago
MARGIN is the minimum amount given to the exchange to execute the trade.
MTM is Marked To Market wherein the profit/loss is credited/debited on daily basis.
PREMIUM is the amount given by the person who wishes to have rights to buy or sell to the seller of the rights.
STRIKE PRICE is the pre-decided price the settlement takes place.
EXPIRY DATE is…[Read more] - Load More