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R . Vinay 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 7 years, 4 months ago
Candlestick analysis is used for short term traders ( 1-2 weeks)
In case Engulfing and Piercing , volume is not that significant.
High Volume represents trend reversal , in case of Doji, Hammer/Hangman.
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R . Vinay Kumar replied to the topic What is the general forecasting duration using candlestick analysis? in the forum The Simple Candlestick Analysis 7 years, 4 months ago
3-4 days .
max 1 week.
Not suitable for intraday trading.
When viewed must be seen in ” daily ” chart.
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R . Vinay 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 7 years, 4 months ago
Its generally takes longer time to form.
Volume at the initial and final point are high.
sign of accumulation.
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R . Vinay Kumar 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, 4 months ago
Triangle pattern is created when both buyers and sellers are strong.
The pattern has a corrective wave pattern.
Duration 1.5 months
Break out is expected at 70% of the triangle area with high volume.
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R . Vinay 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 7 years, 4 months ago
Entry : when the price croses the breakout point.
Stop loss : when the price falls below the bottom of the flag .
Sell : Target price.
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R . Vinay 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 7 years, 4 months ago
Inverted head and shoulder is to determine a trend reversal from Bearish to Bullish.
Conditions :
Duration – minimum 3 months.
Inverted head must be the lowest price reached and should be steep.
The volume is low on the left shoulder and high on the right shoulder.
when the prices cross the neckline , a bullish trend can be expected.
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R . Vinay 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 7 years, 4 months ago
for short position
Entry price : the point where the neckline cuts the right shoulder.
Exit price : Target
Stop loss : Right shoulder top
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R . Vinay 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 7 years, 4 months ago
Head and shoulder is a pattern which helps determining bullish to bearish trend.
Conditions :
Head should be tall and steep.
volume must be high at the left shoulder .
minimum duration of 3 months.
If the prices cross the neckline of the right shoulder, bearish trend starts.
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R . Vinay 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 7 years, 4 months ago
Two equivalent bottom around the same prize zone is a Double bottom.
Two equivalent bottom prices with a minimum duration of 20 days .
The volume is high near the second bottom or at the break out.
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R . Vinay 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 7 years, 4 months ago
Two equivalent tops around the same prize zone is called a Double top.
Two equivalent tops over a month.
Volume must be considerably high at the peak of the second top Or at the breakout zone (previous bottom ) , for trade consideration.
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R . Vinay Kumar replied to the topic When to buy and Sell using Price Patterns? in the forum Price Patterns and its characteristics 7 years, 4 months ago
If all the conditions are satisfied, we buy or sell at breakout . Volume at breakout is considered
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R . Vinay Kumar and Dipakk Mehta are now friends 7 years, 4 months ago
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R . Vinay Kumar replied to the topic How price pattern are different from Dow Theory? in the forum Price Patterns and its characteristics 7 years, 4 months ago
Price patterns help us take early trade decisions compared to dow theory. Price patterns are enhanced versions of dow theory , it tells the characteristic (strength) of the trend.
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R . Vinay Kumar replied to the topic What are Price Patterns? in the forum Price Patterns and its characteristics 7 years, 4 months ago
Movement of price over period of time , makes patterns in charts. Analysts have studied these similar patterns over the years and have got similar results.
Price pattern help us recognize the trend and make appropriate trade decisions.
Types of pattern : double top & bottom , head and shoulder , flag ,cup ,triangle.
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R . Vinay Kumar 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, 4 months ago
Stop loss for long position – Previous High bottom.
Stop loss for short position – Previous Low top.
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R . Vinay Kumar replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 4 months ago
Support – Demand > Supply – buyers zone – price increases
Resistance – Supply > Demand – sellers zone – price falls
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R . Vinay Kumar 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, 4 months ago
line chart
2 years- minimum look up period
duration of trend =2-3 months
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R . Vinay Kumar 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, 4 months ago
Dow theory is used to identify the trend but we cant trade in the market using this theory.
The trend identification takes some time. which cuts the profit margin.
It is favoured even today , as it was one of the first theories to identify demand and supply.
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R . Vinay Kumar replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years, 4 months ago
Long position – for Bullish trend.
Buy when market price crosses previous high top ( * see for high volume at break out)
Short position – for Bearish trend.
Sell when market prices drops below previous high bottom/low bottom (* see for high volume at break out)
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R . Vinay Kumar replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 7 years, 4 months ago
Trend is either Bullish or Bearish
If we get High Bottom – High Top , with high volume at break out – Bullish
If we get Low Top -Low Bottom , with high volume at break out -Bearish.
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