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A brief on Price Patterns and its Characteristics

There are various price trending patterns. These patterns is an enhance to dow theory. They show the strength with which the trend is moving. The price patterns are briefed above.

a brief on dow theory

Dow theory was invented by Charles H. Dow by observing the market rather than the company. He observed the supply and demand of the stock along with its price movement and the volume traded. It requires daily charts for min period of two years. Then major tops and bottoms are identified. Higher bottom to Higher top with significant volume would indicate bullish trend. Lower bottom to lower top…

A brief on futures and options

Trading in futures and options is dealt in this chapter. Futures are trading in a stock or commodity where the deal takes place in the present and the settlement takes place in a future date. In dealing with futures, both the buyer and seller have rights and obligations. There is no premium. The settlement is on day to day basis. However at the expiry the deal has to be finally settled. In options…

A brief on stock trading

Stock trading is done in stock exchanges through the registered brokers. SEBI is a regulatory body for the stock exchanges in india. Stock trading should be done as a business not as gambling. The risk/reward ratio should be known. Stock trading is done by analyzing charts and drawing a trade plan which indicate the entry point, target, stoploss and quantity of stock to trade with. Stock trading…

A brief on stock market

Stock market is a place stock is traded. It is a secondary market. Brokers enroll therein to conduct trade. Stocks are enlisted with the exchange. The popular exchanges in india are NSE and BSE.