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thiru replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 8 years, 3 months ago
The Gap is an area, which is created in candlestick chart due to strength or weakness of buyers/sellers.
Hence the gap has been created between 2 candles in EOD candlestick charts.
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thiru replied to the topic What do we interpret using GAP ANALYSIS? in the forum GAP Analysis and its interpretations 8 years, 3 months ago
Gap analysis is use to identify the strength of the directional movement.
It doesn’t say whether it is bullish or bearish, but it will say whether the movement because of full strength or lack of strength.
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thiru 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 8 years, 3 months ago
Hammer:
It is sign of strength of the bullish variant,
It will appears on the bottom of the trend, after the significant price fall,
The body should be green, and the lower tail should be double the size of the body, Their is no significant visible of upper tail.
High volume should be expected on the hammer day,
On the next day, if the price…[Read more]
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thiru replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 8 years, 3 months ago
Morning Star:
It appears at the bottom of the trend, after a significant price fall,
Volume should be high, it indicates the reversal of trend,
On next day, if the price crosses the morning star’s high we can go for Buy.
Evening Star:
It appears at the top of the trend, after a significant price moves up,
Volume should be high, it indicates…[Read more]
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thiru replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 8 years, 3 months ago
Doji meant neutral. That shape of doji look like a star, that means the opening and closing price would be same.
It appears very rarely but very powerful to indication of trend reversal.
If it happens after a major trend then we can get ready for Sell/Buy based on the previous price movement.
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thiru 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 8 years, 3 months ago
It is also a reversal pattern, appears very rarely, and its good sign of trend reversal.
Conditions:
The latest body should cover the 50% of previous body, and the color has to be reversal,
The upper tail of the latest body should be small in size,
Volume may increase on piercing day. (but its not necessary)
To Buy:
The latest green body…[Read more]
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thiru 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 8 years, 3 months ago
It is a reversal pattern, appears frequently in the candle stick charts.
Conditions:
The Latest body should cover the previous body, and the color has to be reversal.
Trading volume might increase on engulfing day, (but it is not necessary, but its added advantage)
This should happen after major trend rally.
To Buy:
If green body cover the…[Read more]
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thiru replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 8 years, 3 months ago
On EOD charts the forecasting duration using candlestick analysis would be 2 days to 1 week.
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thiru replied to the topic What is Candle stick analysis? Its evaluation and it real time application? in the forum The Simple Candlestick Analysis 8 years, 3 months ago
– The candle stick analysis is a Japanese way of analysis, which they invented 200 years back. Later it has been adopted by western countries.
-Its simple and powerful analytical method.
-The line charts doesn’t focus on particular day’s action, whereas the candle sticks analysis gives more detail of studies.
-It requires basic understanding of…[Read more]
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thiru 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 8 years, 3 months ago
The candle stick analysis is useful for weekly traders. Volume is not play big role in this, but it shows an added strength.
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thiru 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, 3 months ago
It is a price pattern which creates the shape of cup. The distribution take place because of some one wants to buy the stocks in gradual phase.
Conditions:
Identify the cup shape,
Duration to form cup pattern would be around 2 years,
The correlation of market movement should be low,
Lackluster volume should be formed at the rounding…[Read more]
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thiru 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 the Inverted shape of normal Head and shoulder pattern, which creates the bullish trend at break up point.
Conditions:
Identify the inverted Head and shoulder pattern,
Duration to form the entire shape is about 3 months,
Volume at left shoulder should be high, at the right shoulder should be low,
Long position can take at the break up point
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thiru 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, 3 months ago
Head and shoulder is a price pattern, which creates the shape like a head creates the shoulders on both sides.
Conditions:
Identify the Head and shoulder pattern,
Duration to form the entire shape is about 3 months,
Volume at left shoulder should be high, at the right shoulder should be low,
Short position can take at the break up point
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thiru 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, 3 months ago
Double bottom is a price pattern, which is creates 2 equivalent bottoms with significant volume difference.
Conditions:
Identify 2 equivalent bottoms,
Duration between 2 bottoms would be minimum 1 month,
Volume should be higher between 2nd bottom and the break out point.
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thiru 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, 3 months ago
Double top is a price pattern, which creates 2 equivalent tops with significant volume difference.
Conditions:
Identifying equivalent tops,
Duration between 2 tops would be around 1 month,
Higher volume at 2nd top and break out point,
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thiru replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 8 years, 3 months ago
The price patterns are use to identify the characteristics of trend at earlier stages, where the DOW theory fails on that.
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thiru replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 8 years, 3 months ago
The price pattern is a graphical illustration of price movement, which is creating some form of shapes. It can be observed from the Charts.
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thiru 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, 3 months ago
The sequence of price patterns creating triangle shape is called triangle pattern.
Conditions:
Identifying 5 wave points,
Connect 2 tops and 2 bottoms which is creates the triangle shape,
Break up will happen at 5th point nearly 70% area of the triangle,
During the breakup large volume should happen.
After breakup was happened the direction…[Read more]
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thiru 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, 3 months ago
A flag Pattern is a graphic illustration in candle stick charts, in the shape of steeper pole with rectangular head.
Conditions:
Steeper pole trend should appear with 75-80 degrees,
Rectangular head has to form with minimum 3 – 7 days span, volume should be low.
Rectangular head should not drift lower.
Volume should be higher at break out…[Read more]
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thiru replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 8 years, 3 months ago
Generally the Buy and Sell have taken place, when the break out was happened in the price patterns.
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