-
B Vishnuteja replied to the topic What are Support and Resistance? in the forum Dow Theory in Practice 7 years, 5 months ago
Support- The point below which the price is very difficult to fall and it can be also known as buyers area.
Resistance- The point above which the price is very difficult to rise and it is also known as sellers area.
-
B Vishnuteja 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, 5 months ago
Dow theory cannot be used for short term trading (daily) and ignores factors other than supply and demand.
Despite its few short comings, the Dow analysis gives best estimate of price movement when compared to other analysis of the market.
-
B Vishnuteja replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years, 5 months ago
BUY- point at which the price crosses the previous higher top coming from the higher bottom and having high volume of trades.
Sell- point at which the price crosses previous lower bottom coming down from the lower top and having high volume of trades.
-
B Vishnuteja replied to the topic When to buy and Sell using Dow Theory? in the forum Dow Theory in Practice 7 years, 5 months ago
BUY- point at which the price crosses the previous higher top coming from the higher bottom.
Sell- point at which the price crosses previous lower bottom coming down from the lower top.
-
B Vishnuteja replied to the topic What is Dow Theory? in the forum Dow Theory in Practice 7 years, 5 months ago
Dow theory studies the demand and supply of the stocks and gives a meaningful trend in the market.
Dow theory does not forecast the price but instead studies the already traded price to make up a trend by analyzing the demand and supply.
-
B Vishnuteja replied to the topic How to determine the market trend using Dow Theory? in the forum Dow Theory in Practice 7 years, 5 months ago
The first step is to identify and name the tops and bottoms as higher top or lower top and higher bottom or lower bottom.
When there is a higher bottom and higher top with high volume, it is a bullish trend.
When there is a lower bottom and lower top with high volume trade, it is a bearish trend.
-
B Vishnuteja 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, 5 months ago
Line chart is used in Dow analysis with a minimum look up period of 2 years.
Duration of trend forecasting should be from 1 to 3 months.
-
B Vishnuteja 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, 5 months ago
We can keep target and stop loss as Dow theory analysis has a success rate at marginally more than 50 percent and can be benefited with more trades in a particular period.
In the case of bullish trend of Dow theory, when the price crosses the previous higher top, the target and stop loss can be placed equal to the difference between point at…[Read more]
-
B Vishnuteja replied to the topic What is the input (Data required) to do fundamental / technical analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
Fundamental analysis- Company financials, management policies, organisational hierarchy, industry growth, research and technology etc.
Technical analysis- prices at which stocks were traded over a period, volumes of trade with respect to demand and supply etc.
-
B Vishnuteja replied to the topic What is technical analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
The main principle behind technical analysis is “Following the market trend”.
Technical analysis studies the already traded stocks with respect to its price and volume and estimate the future price movements.
-
B Vishnuteja replied to the topic Why do we need to do an analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
Analysis is used to estimate the price movements of the stock for a future period.
-
B Vishnuteja replied to the topic What is fundamental analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
An analysis based on the complete information of a company is known as fundamental analysis.
-
B Vishnuteja replied to the topic What drives the stock price? Why to price changes so often? in the forum Understanding the Price Movement 7 years, 5 months ago
Demand and supply of a stock determines its price in the market.
The factors which influence the demand and supply for each trade drive the prices of the stocks to change frequently.
-
B Vishnuteja replied to the topic What are different types of charts? in the forum Understanding the Price Movement 7 years, 5 months ago
line charts, bar charts and candle stick charts are most commonly used charts by traders.
-
B Vishnuteja replied to the topic Why do people avoid penny stocks? in the forum Understanding the Price Movement 7 years, 5 months ago
Penny stocks are traded less which increases the chance to manipulate its price by the few people who own them.
For this reason penny stocks become highly speculative and are avoided by the traders.
-
B Vishnuteja replied to the topic What is the average turnover in NSE only daily basis? Can any one manipulate the stock price? in the forum Understanding the Price Movement 7 years, 5 months ago
Average daily volume traded is around 20,000 crores in NSE.
Manipulation of stock price is severely restricted as there is high volume of trades in NSE.
-
B Vishnuteja replied to the topic What are the pro / cons of technical analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
Pro: Technical analysis is readily accessible to common man as it requires less time and resources with basic knowledge of supply and demand of the market.
Con: Unlike fundamental analysis, there is less accuracy in forecasting the price movement of the shares.
-
B Vishnuteja replied to the topic what are the Pro and cons of fundamental analysis? in the forum Understanding the Price Movement 7 years, 5 months ago
Pros: Fundamental analysis gives definitive forecast of the share price in the future.
Cons: It takes huge time and resources for such analysis to take place thus it cannot be possible for a common man.
-
B Vishnuteja replied to the topic How option contract differ from future contract? in the forum Essentials of Trading Instruments 7 years, 5 months ago
In future market, Both buyers and sellers have unlimited risks and rights .
In option market, Buyers have limited risks while sellers have unlimited risks and rights.
-
B Vishnuteja replied to the topic What is Spot / Cash market? in the forum Essentials of Trading Instruments 7 years, 5 months ago
A market in which the trading requires immediate settlements usually in 1 to 2 days is known as spot / cash market.
Equity share market is a spot / cash market.
- Load More