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Vijayavani 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, 2 months ago
Hammer: When the opening price and closing price are near the highest price, then a hammer shaped candlestick is formed and it is green in color We can buy.
Hanging Man: When the opening price and closing price are near the lowest price or highest price, and if it is red in color then it is hanging man. We can sell. -
Vijayavani 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, 2 months ago
When a candlestick completely engulfed the previous candlestick it is engulfing pattern. If the engulfing candle is green in color, then we can buy. If the engulfing candle is red in color, then we can sell. Condition to qualify is good traded volumes.
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Vijayavani replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 2 months ago
Morning star: When a DOJI is formed after bearish trend, then it is morning star, we can buy.
Evening star: When a DOJI is formed after bullish trend, then it is evening star, we can sell.
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Vijayavani replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 7 years, 2 months ago
If DOJI appears after bearish trend, then it is morning star, it is positive trend, we can buy.
If DOJI appears after bullish trend, then it is evening star, it is negative trend, we can sell. -
Vijayavani replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 7 years, 2 months ago
When the opening price and closing price are same, then it represents a DOJI. It shows trend reversal, that is after a negative trend for many days if DOJI is formed, then we can take long position. If DOJI is formed after positive trend for many days, then we should take short position.
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Vijayavani replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 2 months ago
General forecasting duration is for a week.
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Vijayavani 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, 2 months ago
people who does weekly trade should do candle stick analysis. Volume indicates the trend reversals.
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Vijayavani 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, 2 months ago
Candle stick analysis is done to invest on weekly trades. Candle stick chart is formed using the starting price and the closing price of the stock. It will be green in color for bullish trend and red in color for bearish trend. Its real application is, we can take long position if it is green and short when it is in red.
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Vijayavani 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, 2 months ago
The price movement looks like zig zag form and then it will converge and it will fit in triangle. That is when we mark 5 points with the price movement which is in zig zag form like A, C, E being tops and B, D being bottoms and when we connect A, C, E on top and B, D at the bottom, it looks like perfect triangle. The zig zag form will cover 70%…[Read more]
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Vijayavani 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, 2 months ago
When the movement of the price looks like flag in the graph, it is flag pattern. First it should form a steeper pole, in this stage instead of the price going high, it will travel side ways like rectangle form. This rectangular form should be formed in 3 to 4 days and high volumes at end of flag.
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Vijayavani replied to the topic What Should be Entry price, Exit Price and Stop loss for Head & Shoulders in the forum Price Patterns and its characteristics 7 years, 2 months ago
Entry price is the price which breaks down the neck of right shoulder, stop loss at the price of right shoulder, exit price is difference between buy price and stop loss.
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Vijayavani 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, 2 months ago
It is opposite scenario of head and shoulder, if stronger hands gradually accumulates a stock then two small bottoms and in between them a high bottom is formed, which appears like inverted head and shoulder. Less trade on right shoulder compared to left. After most of the stock are accumulated by stronger hand, the price goes high, which…[Read more]
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Vijayavani 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, 2 months ago
When two small tops are formed and one higher top is formed in between the two small tops, it looks like head in between two shoulders, if we identify this type of graph, it is head and shoulder formation.
This is formed when stronger hands gradually sell a stock, in the initial stage the stronger hand will keep on buy and sell the stock, but…[Read more] -
Vijayavani 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, 2 months ago
If stronger hands gradually accumulates a stock in around around 10 months to a year, then it forms a rounding bottom, that is there would not be a big rise or low in price of the stock. After the price had traveled more or less the same price for around a year and then if it breaks the cup and goes high, then it is a bullish trend.
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Vijayavani replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 2 months ago
Using Price patterns we should determine which pattern the stock forms,
if it forms double top, we should take short position.
if it forms double bottom, we should take long position.
if it forms flag, we should take long position.
if it forms head and shoulder, we should take short position.
if it forms cup, we should take long position.…[Read more]
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Vijayavani 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, 2 months ago
If we could identify double top which can be more or less equal within a month and the traded volumes are high at the second top, then it determines the bearish trend.
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Vijayavani replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 2 months ago
Dow theory can be used for long term investments, but price patterns can be used for short term investments.
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Vijayavani replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 2 months ago
Price patterns explains the movement of price of a given stock which helps us to conclude whether we should take long position or short position depending on the pattern.
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Vijayavani 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, 2 months ago
Line chart is used for Dow theory.
Minimum 2-year period.
Duration of trend forecasting can be around 2 to 3 months. -
Vijayavani replied to the topic What are the major critics against Dow Theory? How come it remains on top of any analysis? in the forum Dow Theory in Practice 7 years, 2 months ago
The critics of Dow theory are,
* It can be used only for long term as it is late in identifying the pattern.
* It cannot explain the characteristics of price behavior.Dow theory is the first theory to analyse a stock with its price movement using demand and supply. As it is the origin of all the new latest theories of technical analysis, it…[Read more]
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