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Vimal Kumar replied to the topic What do we interpret using GAP ANALYSIS? in the forum GAP Analysis and its interpretations 6 years, 11 months ago
Its used to identify the strength of the trend.
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Vimal Kumar replied to the topic What is called as GAP in technical analysis? in the forum GAP Analysis and its interpretations 6 years, 11 months ago
The difference between the price opening and the previous day price close is high. This forms a space between two candlestick. Representing the strength of the trend.
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Vimal Kumar replied to the topic How to name a GAP? What are Four Types of GAP? in the forum GAP Analysis and its interpretations 6 years, 11 months ago
Candlestick is recommended to identify the gap. A gap forms when there is enough space difference between the previous day close / high and today’s open price. Based on the location of the Gap in the chart, there are 4 types of Gap
1. Area Gap :- Forms in non-trending zone.
2. Breakout :- forms when there is breakout in the non-trending. And it…[Read more] -
Vimal Kumar 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 6 years, 11 months ago
Consolidation :-
1. This is also known as Area Gap, which forms in the Non-Trending zone between the demand & supply area.
2. Its likely to get filled soon.
3. Normal volumeBreakout :-
1. This gets formed above or below the non-trending zone with high volume. Its the beginning of the trend.
2. High volume is requiredRunaway :-
1. Another big…[Read more] -
Vimal Kumar 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 6 years, 11 months ago
Its a formation during the reversal with the lower wick two times bigger than the body for the hammer and upper wick two times bigger than the body for hanging man.
This is popular because of its strength. The price goes far low and try to come up and sustains. This is a rare occurrence but powerful.Buy :- top of the hammer
stop loss :- bottom…[Read more] -
Vimal Kumar replied to the topic What is morning and evening STAR? When to buy and Sell? in the forum The Simple Candlestick Analysis 6 years, 11 months ago
Morning Star :- Doji formation after the significant down trend
Evening Start :- Doji formation after the significant up trend.Buy :- long – top of the doji.
Stoploss – bottom of the doji
Sell – 2 times the differnece between the buy & stop loss. -
Vimal Kumar replied to the topic What is DOJI? How to make use of DOJI? in the forum The Simple Candlestick Analysis 6 years, 11 months ago
Doji means neutral. That means there is very less movement between the open and close for the day. Based on this nature it represents like a star.
This is well qualified when it forms after a significant price fall or up with a good volume.
During the reversal pattern, if bullish, go long on the top of the doji with stop loss at the bottom of…[Read more]
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Vimal Kumar 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 6 years, 11 months ago
Similar to engulfing pattern in terms of last trends & reversal.
Unlike the engulfing pattern, the current candle should open below the last candle’s low and should have covered the 50% of the last candles body with minimal high value. This should have good volume.
On the next day, go long at the price goes above the highest point between the…[Read more]
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Vimal Kumar 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 6 years, 11 months ago
This is the case where a candle stick completely covers the body of the previous day candle stick.
Conditions to Qualify :-
1. There should be continuous trend (bullish or bearish) atleast 3 to 4 days and a sudden reverse pattern.
2. There should be an engulfing pattern in the reverse point.
3. High volume should be there.When to buy and…[Read more]
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Vimal Kumar replied to the topic What is Candle stick analysis? Its evaluation and it real time application? in the forum The Simple Candlestick Analysis 6 years, 11 months ago
Candle stick analysis is a technical analysis using a candle like representation (a body and upper & bottom wicks). It represents the price movements in a day.
It was followed by Japanese people 100+ years ago for trading purpose. This was later adopted, by the western, in the share market.
Its best applicable for weekly traders with the daily…[Read more]
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Vimal Kumar 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 6 years, 11 months ago
Candle stick analysis is used by the short term / weekly traders. Since, its a reversal pattern, strong volume conveys the high chance of trend reversal.
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Vimal Kumar replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 6 years, 11 months ago
Candlestick analysis is best used for weekly forecasting, i.e., 4 to 5 days.
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Vimal Kumar 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 6 years, 11 months ago
Entry Price :- The point after the breakout point. That is below the neckline of the last bottom.
Stop loss :- The top of the last shoulder.
Exit Price:- Entry Price + (Entry Price – Stop Loss)
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Vimal Kumar replied to the topic What Should be Entry price, Exit Price and Stop loss for Flag Pattern in the forum Price Patterns and its characteristics 6 years, 11 months ago
Entry Price :- The point after the breakout point. That is above the flag top.
Stop loss :- The bottom of the flag pattern.
Exit Price:- Entry Price + (Entry Price – Stop Loss)
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Vimal Kumar 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 6 years, 11 months ago
Its the inverse of the double top. This is formed by 2 bottoms (almost the same level) with a minimum period of 1 month. There should be a high volume in the 2nd bottom. You should go long when the pricing moves above the neckline of the last top.
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Vimal Kumar 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 6 years, 11 months ago
This is formed by 2 tops (almost the same level) with a minimum period of 1 month. There should be a high volume in the 2nd top. You should go short when the pricing moves below the neckline of the last bottom.
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Vimal Kumar 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 6 years, 11 months ago
It represents the opposite of the head and shoulder. The minimum time period is 3 months.
It should have 3 bottoms with the middle being the longest among them. The left shoulder should have high volume and the right shoulder having low volume.
When the breakout moves above the neckline, go long.
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Vimal Kumar 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 6 years, 11 months ago
This is represented by 3 tops with the middle one being the tallest among them, forming a head like shape with two shoulders. The minimum time period is 3 months.
The left hand shoulder should have high volume and the right hand shoulder should have low volume.
You need to go short when the price line crosses below the neckline of the right hand…[Read more]
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Vimal Kumar 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 6 years, 11 months ago
The CUP pattern forms during the accumulation by a strong hand gradually. The minimum time period is 6 months. There is a constant range (the tops & bottoms happens within this range) maintained irrespective of the market trend with the low volume.
There would be a sudden spike upwards after the above trend. Which gives a pattern of CUP. This…[Read more]
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Vimal Kumar replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 6 years, 11 months ago
During the breakouts from the pattern. The buy & sell order should be done when the price crosses the neckline with respect to the previous top or bottom range according to the price pattern. If the breakout is upward, then go long otherwise go short.
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