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Support and Resistance
Before discussing Support and Resistance, let us first understand the concept of supply and demand. What are Supply and Demand? Supply and Demand depict the relationship between sellers and buyers. Supply…
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Price Channels and Rectangle Formations
In Price Channels and Rectangle Formations, price moves in between two parallel lines. Breakout from these decides the further trend. Price Channels are made up of two diagonal but parallel lines, so…
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Market Trends
The market moves in a trend and “trend is your friend until its bend”, a saying which every trader or investor should follow. It is one of the most important principles of Dow…
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Market Cycle
What is the Market Cycle? Markets do not move straight in one direction, they go up, reaches a peak, comes down and at last hit the bottom. This process repeats again and…
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Dow theory
A brief history of Dow Theory In 1882, Charles Henry Dow co-founded Dow Jones Company (a publishing company of financial news) with his partners Edward Jones and Charles Bergstresser. Charles Dow was also the…
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Important points to remember during volume analysis
There are certain points which we need to remember while analysing volume, some of them are discussed here:- 1. Volume analysis is a self-reliant analysis; no special automated software is needed…
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Role of Volume in Trading
Volume is the validity of price movement. It is an extremely important parameter which one should not ignore, as it shows the strength of price movement. Volume is the total quantity of…
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Chart Pattern (Part 6) – Cup with Handle and Inverted Cup with Handle Patterns
These patterns are continuation patterns and were developed by William J. O’Neil which he had mentioned in his book “How to make money in stocks”. (Buy this book on Amazon) They are basically…
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Chart Pattern (Part 5) – Wedge and Rectangle Patterns
Wedge Patterns Wedges are the most unpredictable patterns, as their prior trend and trend after the breakout is uncertain. They are short term patterns and are of two types; 1. Rising wedge pattern…
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Chart Patterns (Part 4) – Broadening Formation, Flag and Pennant Patterns
There are certain chart patterns which are very much similar to the other ones. Some of them are discussed here. 1. Broadening formation – It is a different type of triangle pattern. It…
