one of the most popular intraday trading tips is "use pivots to know when to entry and when to exit" today we are going to explore this tips, before we go deeper, we need to know what are these pivot points??
Pivot points can be
very useful tool for intraday trading, because of inherited simplicity and ease
of usage , a large number of traders used it in past, using right now and we
can safely assume , that they will be using in future too.
Pivot point is a basic mathematical calculation w... Continue reading ...
Kicking Bearish
RELIABILITY: HIGH · The first day is a White Marubuzo day · The second day is a Black Marubuzo day that gaps downward This pattern is a strong sign that the market is headed downward. With this indicator, the previous market direction is not as important as with other indicators. Continue reading ...
Shooting Star / Grave Stone Doji Bearish
How to identify it:
· Small real body at the lower end of the trading range · Upper shadow usually at least three times as long as the real body · No (or almost no) lower shadow The market gaps open above the previous day's close in an uptrend. It rallies to a new high then loses strength and closes near its low: a bearish change of momentum. Confirmation of the trend reversal would by an opening below ... Continue reading ...
Falling Three Methods Bearish
RELIABILITY: HIGH How to identify it: · The first day is a long black day · The second, third, and fourth days have small real bodies and follow a brief uptrend pattern, but stay within the range of the first day · The fifth day is a long black day that closes below the close of the first day In a downtrend, a long black day occurs, following by three days of small real bodies that fall into a short uptrend. On the fifth day, the bears come in s... Continue reading ...
: Evening Star Bearish:
RELIABILITY: HIGH · First day is a long white day · Second day is a small day that gaps in the direction of the previous trend · the third day is a black day In an uptrend, the market builds strength on a long white day and gaps open on the second day. However, the second day trades within a small range and closes at or near its open. This scenario generally shows an erosion of confidence in the current trend. Confirmation of the... Continue reading ...
Evening Doji Star Bearish
RELIABILITY: HIGH · First day is a long white day · Second day is a doji that gaps in the direction of the previous trend · The third day is a black day What it Means:In an uptrend, the market builds strength on a long white day and gaps open on the second day. However, the second day trades within a small range and closes at or near its open. This scenario generally shows an erosion of confidence in the current trend. Confirmation of the tre... Continue reading ...
Engulfing Bearish
RELIABILITY:MODERATE · A long white day occurs · The second day is a black day that completely engulfs the real body of the first day What it Means:Occurring in an uptrend, the Engulfing depicts an opening at a new high, followed by a high volume sell-off that closes at or below the previous day's open. This signifies that the uptrend has been hurt and the bears may be gaining strength. The Engulfing indicator is also the first two days of the... Continue reading ...
Hanging Man / Dragonfly Doji Bearish
RELIABILITY:LOW/MODERATE · Small real body at the upper end of the trading range · Lower shadow at least twice as long as the real body · No (or almost no) upper shadow What it Means: There is a sharp sell off after the market opens during an uptrend. However, by the end of the trading day, the market closes at or near its high for the day. This signifies the potential for further sell-offs. Since the certainty for a Hanging Man indicator is ... Continue reading ...
Doji Star Bearish
RELIABILITY:MODERATE · First day is a long white day · Second day is a doji that gaps in the direction of the previous trend · The shadows of the doji should not be long Continue reading ...
Dark Cloud Cover Bearish
· First day is a long white day · Second day is black with an open above the high of the previous day · Second day closes within but below the midpoint of the first day's body In an uptrend the market gaps open, but loses ground to fall below the midpoint of the previous day. The Dark Cloud Cover pattern suggests an opportunity for the shorts to capitalize on the next day's open: a warning sign to bullish inves... Continue reading ...
Abandoned Baby Bearish
RELIABILITY: High · First day is usually a long white day · Second day is a doji that gaps in the direction of the previous trend · The third day is a black day, gapping in the opposite direction, with no overlapping shadows In an uptrend, the market builds strength on a long white day and gaps open on the second day. However, the second day trades within a small range and closes at or near its open. This scenario definitely show... Continue reading ...
Tri Star Bullish
RELIABILITY :Moderate · A doji occurs on three consecutive trading days· The second doji gaps below the first and third In an long downtrend, the market shows signs of a rally as the real bodies have grown progressively smaller. The trend culminates with the bullish Tri Star, identifying that many bearish positions may be reversing. Continue reading ...
Rising Three Methods Bullish
RELIABILITY: High · The first day is a long white day · The second, third, and fourth days have small real bodies and follow a brief downtrend pattern, but stay within the range of the first day · The fifth day is a long white day that closes above the close of the first day In an uptrend, a long white day occurs, following by three days of small real bodies that fall into a short downtrend. On the fifth day, the bulls come in s... Continue reading ...
Piercing Lines Bullish
RELIABILITY:Moderate How to Identify it : · First day is a long black day · Second day is a white day with an open below previous days low · Second days close is within but above the midpoint of the first days body In a downtrend the market gaps open, but rallies strong to close above the previous days midpoint. This pattern suggests an opportunity for the bulls to enter the market and support the trend reversal. The Piercing Line pattern is the op... Continue reading ...
Morning Star Bullish
RELIABILITY: High How to identify it: · First day is a long black day · Second day is a small day that gaps in the direction of the previous trend · the third day is a white day In a downtrend, the market bolsters the bearish trend with a long black day and gaps open on the second day. However, the second day trades within a small range and closes at or near its open. This scenario generally shows the potential for a rally, as many positions have be... Continue reading ...
Morning Doji Star Bullish
RELIABILITY : High · First day is a long black day · Second day is a doji that gaps in the direction of the previous trend · The third day is a white day What it Means :In a downtrend, the market bolsters the bearish trend with a long black day and gaps open on the second day. However, the second day trades within a small range and closes at or near its open. This scenario generally shows the potential for a rally, as many positions have be... Continue reading ...
Kicking Bullish
· The first day is a Black Marubuzo day · The second day is a White Marubuzo day that gaps upward This pattern is a strong sign that the market is headed upward. With this indicator, the previous market direction is not as important as with other indicators Continue reading ...
Harami Bullish
RELIABILITY: Low How to identify it:· A long black day occurs · The second day is a white day where the real body is completely engulfed by the After a long black day at the low end of a downtrend, a white candlestick opens higher than the previous day's close. The price is driven up, as many shorts are covered, which encourages further buy-ins. The Harami indicator should be confirmed with the next trading day's candlestick f... Continue reading ...
Inverted Hammer / Gravestone Doji Bullish
RELIABILITY: Low / Moderate How to Identify it :· Small real body at the lower end of the trading range · Upper shadow usually no more than twice as long as the real body · No (or almost no) lower shadow As the market opens below the close of the previous day, the bulls rally briefly, but not enough to close above the previous day's close. As this leaves shorts in a losing position, the Inverted Hammer presents the potential for an upcoming rally.... Continue reading ...
: Engulfing Bullish:
RELIABILITY:Moderate · A long black day occurs · The second day is a white that completely engulfs the real body of the first day
What it Means:Occurring in a downtrend, the Engulfing depicts an opening at a new low, followed by a high buy-in that closes at or above the previous day's open. This signifies that the downtrend has lost momentum and the bulls may be gaining strength. The Engulfing indicator is also the first two days of the Three O... Continue reading ...
: Hammer / Dragonfly Doji Bullish:
RELIABILITY: Low / Moderate How to identify it:
· Small real body at the upper end of the trading range · Lower shadow at least twice as long as the real body · No (or almost no) upper shadow There is a sharp sell off after the market opens during a downtrend. However, by the end of the trading day, the market closes at or near its high for the day. This signifies a weakening of the previous bearish sentiment, especially if the real body is white (... Continue reading ...
Doji Star Bullish:
PATTERN: Reversal
· First day is a long black day · Second day is a doji that gaps in the direction of the previous trend · The shadows of the doji should not be long In a downtrend, the market bolsters the bears with a long black day and gaps open on the second day. However, the second day trades within a small range and closes at or near its open. This scenario generally shows the potential for a rally, as many positions ha... Continue reading ...
: Abandoned Baby Bullish:
· First day is usually a long black day · Second day is a doji that gaps in the direction of the previous trend · The third day is a white day, gapping in the opposite direction, with no overlapping In a downtrend, the market bolsters the bearish trend with a long black day and gaps open on the second day. However, the second day trades within a small range and closes at or near its open. This scenario definitely shows th... Continue reading ...
candlestick patterns introduction
All of us know about the candlestick method of charting. In my last post. I have shown u how to plot a candlestick bar. The components of candle stick bar is quite similar to that of an OHLC bar, and I am sure that many of u wonder why should we prefer the candle stick bar against a simple OHLC bar? I did so in my early days
Its true that candle stick bar and OHLC bar are made from the same data, but the position of candle stick bar in the chart itself tells us about the possible way of future... Continue reading ...
How to plot a single OHLC bar and a single Candlestick bar
How to plot a single OHLC bar As already mentioned, its made up of open/high/low/close price of a given security. A long straight line stands for the high and low where high is the highest point of that line and low is the lowest point of the line, which effectively defines the trading rangeThe open price is denoted by a tick on the left hand side and the clos price is denoted by a tick at the right hand side of the long straight line., viz the trading range
How to plot a single candle stick b... Continue reading ...
Various Types of Charts
Though thee are many types of chart but most important types are as follows
- Line chart
- Bar chart or OHLC chart
- Candle stick chart
Line chart It is the very basic chart which consists of only closing price under a particular time frame, here, like any other chart, time scale remain along the X axis and price scale stays with Y axis and closing price of a security under a particular time frame is plotted and then joined by a line to get a line chart
Bar chart or ohlc chart As the name suggests this... Continue reading ...
Charts
The graphical representation of price action is the chart. It is so important to a technical analyst that often-technical analysts are called “chartist”. Without which, the very existence of a technical analyst will vanish, we can compare it to a rifle of a soldier, without a rifle, a soldier is also a lame duck. Just like that,without chart, a technical analyst can not survive in the market Continue reading ...
Various technical terms and their meanings
The technical analysis consists of the following three factors. These are most important here.
- Price .2. Time and 3. Volume
- Price—while in the market, a buyer creates the demand and the seller creates the supply force, we can say price the the point of negotiation which lets them exchange their needs
- Time – time is the time scale of exchange, under which the exchange is taking place
- Volume—under a given time. Then number of securities which changes hands from seller to buyer is the corresp...
Continue reading ...
Understanding The Market
There are two broader ways to understand the market properly. One is fundamental analysis and another is technical analysis. These are two totally different approaches, which often conflicts in the process of decision-makings. Before we go in to depth, let us know what they exactly stands for. Fundamental analysis studies the “inner description” of the security. It includes the financial data which tries to emphasis upon SWOT viz the Strength, the Weakness, the Opportunity and finally, th... Continue reading ...
Ways to trade forex
Posted by tushar chatterjee on Saturday, May 21, 2011,
In :
Forex Basics
Forex can be traded in various ways, such as
1. Spot forex
i)
simplest form of
trading
ii)
it gives you high
liquidity
iii)
spread difference is
not so big here
iv)
it runs 24 hours
v)
availability of free
tools, like charts, economic calendar and so on
2. Future market
i)
it is created by Chicago mercantile
exchange in 1972
ii)
it has standardized
size
iii) ... Continue reading ...
Exotic pairs
Posted by tushar chatterjee on Saturday, May 21, 2011,
In :
Forex Basics
It’s a
pair of a major currency with a currency of a developing nation, such as
USD/INR, being less traded, here liquidity generally tends to be very low and
transaction is also very high
Continue reading ...
Minor pairs
Posted by tushar chatterjee on Saturday, May 21, 2011,
In :
Forex Basics
Currency pairs that don't contain the USD are known as minor pairs
or cross-currency pairs or simply as the "crosses.” The most actively
traded crosses are derived from the three major non-USD currencies: EUR, JPY,
and GBP. Continue reading ...
What are major currencies?
Posted by tushar chatterjee on Saturday, May 21, 2011,
In :
Forex Basics
Major currencies are those which enjoy a higher turn over in the
Forex market than other currencies, being heavily traded; these currencies give
you excellent liquidity which in turns increases volatility….. The single most
important factor for winning and loosing the game!
In the following table we can see all
the heavily traded currencies viz, major currencies, also notice the
nomenclature, every currency has a three letter name, like United States
dollar is called USD, here first two le... Continue reading ...
What is traded in Forex market?
Posted by tushar chatterjee on Saturday, May 21, 2011,
In :
Forex Basics
Simply
put, “money” is traded here, its like buying a share of a company, when u are
optimistic about the future of a company, you will want to be a part of it and
that’s why you buy the shares of the company. Just like that, when you buy US$,
it essentially shows that at this moment you are optimistic about the future of
united state economy ... Continue reading ...
What is Forex all about
Posted by tushar chatterjee on Thursday, May 19, 2011,
In :
Forex Basics
The foreign exchange market (forex, FX, orcurrency market) is a global, worldwide decentralized over-the counter financial market for trading currencies. Financial centers around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends. The foreign exchange market determines the relative values of different currencies. The primary purpose of the foreign exchange is to assist international trade and i... Continue reading ...
| |