Volume Spread Analysi...
Sunday, 30 December 2012
Tuesday, 25 December 2012
2013 Market predictions
2012 is drawing to a close and Indian markets have given close to 25% returns this year. And just like past years, experts are coming out with targets like 21,000, 23,000 & 26,000 for Sensex. It seems that everyone is anticipating a bull market. And this anticipation is fueled by buzz words like Reforms, FDI, coming rate cuts, rising investor sentiments, etc.
So what are our predictions?
Before you close this website after...
Saturday, 15 December 2012
Trading is a Journey in Self-Discovery
I know a trader, let’s call him Leon. He day trades Futures. He has been actively trading for several years. His profits are erratic and undependable, often going dramatically up and down in the same session. When Leon is making money his confidence soars and he feels like he is a power trader. On the other hand, when he loses money, which is more times than he cares to admit, he feels like a failure, a loser and stupid. For quite some time Leon has wondered why he can’t be consistently successful, and why his drawdowns tend to be much larger...
Sunday, 25 November 2012
Tuesday, 18 September 2012
Size dose matter!....in Stock Investing Too...
One size doesn’t fit all! And this is especially true in the case of stock investing too. Companies of all sizes are listed on the bourses. But no two people can create the same portfolio out of these companies. This is because each person has a different risk profile. And each company carries a different degree of risk. The size of the company is determined by its market capitalisation. The market capitalisation of the company is determined by calculating the per share price by the number of outstanding shares. Simply defined, it is how...
Friday, 31 August 2012
Price Action Trading Method
Swing Highs and Lows
The first thing that we need to recognise is what is a Swing High and Swing Low. This is probably the easiest part of price action and bar counting although the whole process gets easier with practice.
I define a swing high as;
A three bar combination
A bar preceded and succeeded by lower highs
I define a swing low as;
A three...
PRICE & VOLUME RELATIONSHIP
PRICE & VOLUME RELATIONSHIP
Up-trending marketPriceVolume
UptrendUpUp
CorrectionDownDown
ReversalDownUp
Down-trending marketPriceVolume
UptrendDownUp
CorrectionUpDown
ReversalUpUp
Market directionPriceVolumeCalculation
UptrendUpUp+ Volume
DowntrendDownUp- Volume
CorrectionsUp / DownDown0
...
Sunday, 26 August 2012
Momentum investing
Momentum investing involves buying and selling stocks that are likely to witness a substantial jump in prices in a short span of time. In other words, the investor buys stocks that are about to soar and sells them at a much higher price. As a momentum investor, one seeks to identify stocks that have the potential to yield spectacular returns within a short to medium holding period, say, 1-6 months.
When the market rallies, momentum stocks are...
Monday, 30 July 2012
BASICS OF MARKET
What is economics?
Economics can be defined as a science which deals with distribution,production and consumption of goods and services.
What is GDP ?
GDP stands for Gross Domestic Product which is an indicator shows the total value of all the goods and services in a country within a specific time period.
What is the significance of GDP ?
It shows the economic stability of the country. GDP has an impact on everyone who is in the economy. Higher the GDP means, higher is the business,...
Monday, 16 July 2012
Saturday, 14 July 2012
Wednesday, 18 April 2012
Thursday, 5 April 2012
The Hidden Strengths of Volume Analysis - Part 2
In part 1, I discussed two examples of how and why volume can show the changing face of supply and demand. When the order of supply and demand is change we will get a change in market direction, sometimes a significant change in trend or otherwise some degree of retracement of the prior move. We will now continue on from that discussion and show larger periods of transition which can lead to quite substantial turning points in the major trends....
The Hidden Strengths of Volume Analysis - Part 1
The power of correct volume analysis cannot be overlooked. Unfortunately the ability to read volume correctly is not readily discussed or freely available. Off-the-cuff remarks such as, “increased volume on advances is bullish and increased volume on declines is bearish” are bantered around but that’s as far as it goes. The correct use and application of volume can make for some quite startling insights into price action, especially when one is...
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