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Ubeidulla 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, 9 months ago
Engulfing Pattern is a reversal pattern. We can identify the engulfing pattern if one body (candle stick) covers the previous body. It may be BULLISH or BEARISH.
BUY – We can Buy, if the green body covers the red body with a high volumeSELL – We can Sell, if the red body covers the green body with a high volume
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Ubeidulla 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, 9 months ago
Candle stick charts gives you detailed day to day price movements. It gives you short term trend.
Recommended for weekly trader, Day candle is recommendedHigh volume gives us an idea of the strength of the demand and trend reversal.
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Ubeidulla replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 7 years, 9 months ago
Doji means neutral in japanese. when the demand and supply are balanced, the opening and closing price are the same, so the body of the candle is very thin, so it appears like a star. Doji appears rarely but very powerful and reliable indicators of trend reversal
If doji appears after a significant price fall with high volume– Morning star– ind…[Read more]
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Ubeidulla 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, 9 months ago
Candlestick analysis was developed by the Japanese. It is simple but powerful tool for analysis. Day candle charts give day to day price movement and useful for weekly taders. It helps us to analyse short term trends and trend reversals.
Each candle gives open , close,high and low price levels. When the closing price is more than opening price ,…[Read more]
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Ubeidulla replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 9 months ago
General forecasting duration for the candle stick analysis is for few days to a week time.
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Ubeidulla 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, 9 months ago
Cup pattern or rounding bottom pattern is a clear case of long term accumulation where price remains prices enters into a non trending region with a steep price fall followed by a fluctuating price within the common area for a long period followed by a steep growth breakout. The point where the breakout region start is a good place to buy and…[Read more]
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Ubeidulla replied to the topic Which chart types are suitable for understanding Price patterns namely CUP, Flag in the forum Stock market questions and answers 7 years, 9 months ago
Cup pattern – line chart
Flag pattern – Candlesticks
Triangle – Candlesticks
Double top/double bottom – line chart
Head and shoulders – line chart
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Ubeidulla 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, 9 months ago
Flag pattern is about formation of a slanting flag (almost 75 degree) which is a pole followed by a steady rectangular region, where the volume comparatively low in the rectangular region. The bullish trend can be decided based on a breakout with a major volume.
Conditions of flag pattern are
1) Low volume in rectangular region
2) Rectangular…[Read more] -
Ubeidulla 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, 9 months ago
Triangle pattern is one of the price pattern where we can make money. Conditions for triangle
Triangle should take 3 to 7 days to from.
We should mark five points in triangle A B C D and E (Top, bottom, lower top, higher bottom., lower top).
Triangle breakout is expected at 70% of triangles area and the volume will be higher at breakout…[Read more]
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Ubeidulla 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, 9 months ago
while analyzing the line chart if found that two equivalent tops formed in a period of 20 days to one month time period it considered as a double top pattern.
Conditions to determine the bearish trend:
1) the duration to form between the two tops must be minimum of 20 days to 30 days.
2) high volume at second top is required
3) price breks…[Read more]
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Ubeidulla replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 9 months ago
1.DOUBLE TOP – In this case we are going for short position.
Sell: After breakout point reached, we go for short position. So the area at which the graph crossed the breakout point we go for sell.
Buy: Before buying in short position we have to analyse the stop loss. The risk and return % must be calculated. The risk is at the top of previous t…[Read more]
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Ubeidulla replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 9 months ago
Double Top & Double Bottom: In case of double equivalent tops or double equivalent bottoms, the bearish region (buy signal) can be confirmed when the price passes the neckline of the double top to and the bullish region (sell signal) is confirmed when price passed the highest top of the double bottom region.
Head and Shoulders: In case of head…[Read more]
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Ubeidulla 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 7 years, 9 months ago
f a line chart two equivalent bottoms formed in a period of 20-30 days time period can be considered as a double bottom.
1) the duration between the double bottom must be minimum of 20-30 days.
2) High volume is required at second bottom should be high.
3) if the price goes up from the previous day’s high with high volume at break out point i…[Read more]
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Ubeidulla replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 9 months ago
patterns formed based on the price movement, demand and supply
to determine the characteristics of the market with strength these patterns are very use full since it give us the entry point, exit point with stop-loss.
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Ubeidulla replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 9 months ago
Dow theory gives the demand and supply based on market trend.
Price pattern gives the characteristics, early signals to buy/sell.
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Ubeidulla replied to the topic Since dow theory is only to find the trend, cant we keep target and stop loss? in the forum Stock market questions and answers 7 years, 9 months ago
Dow theory is good only for understanding the trend is Bullish or Bearish and for forecasting the trend for next 2 to 3 months.
As a trader we are not going to use Dow theory to buy and sell a stock. so we can’t keep target or stop loss based on Dow theory.
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Ubeidulla 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 7 years, 9 months ago
In Dow theory type of chart used is Line chart.
The minimum look up period is 2 Years.
And the duration for trend forecasting for Dow theory is 2-3 months.
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Ubeidulla 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 7 years, 9 months ago
In Dow theory type of chart used is Line chart.
The minimum look up period is 2 Years.
And the duration for trend forecasting for Dow theory is 2-3 months.
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Ubeidulla replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 9 months ago
Support – is the low price where demand > supply and called as buyers zone.
Resistance- is the high price where demand < supply and called as sellers zone.
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Ubeidulla replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 7 years, 9 months ago
Here we need to analyze min 2 year data as line chart.
Identify higher top/higher bottom/lower top/lower bottom w.r.t previous top/bottom.identify sequences:
Higher Bottom – Higher Top – with volume ==>Bullish trend (means Demand > supply)==>Buy (Create Long position)
Lower Top – Lower Bottom – with volume ==>Bearish trend (means Demand < su…[Read more] - Load More