Line chart
by PRASHANT SHAH -
Closing price is the last traded price of the session. When you check the position of your portfolio when the market is open, the price that you see and evaluate your portfolio is known as CMP (current market price). When market closes, the last traded price is considered as a closing price. But when we ... Read more
Bar chart
by PRASHANT SHAH -
You may recall that the line chart connects a single price (closing price) to plot the chart. We discussed about four prices that we get for each session: Open, High, Low and Close. Instead of only considering closing price of a particular session, all prices of the session can be plotted in the format of ... Read more
Candlestick chart
by PRASHANT SHAH -
Candlestick charts are probably one of the most popular and widely followed charting method. It is considered to be among the oldest Japanese charting method. The early form of candlestick chart patterns was explained by Homma Munehisa in his in book titled The Fountain of Gold – The Three Monkey Record of Money. This book ... Read more
Engulfing Swing Price Pattern
by PRASHANT SHAH -
Engulfing Price Pattern Below is a picture of Bullish and Bearish Engulfing Candlestick patterns. Abullish candle that engulfs the body of previous bearish candle is known as a Bullish Engulfing candlestick pattern and a bearish candle that engulfs the body of previous bullish candle is known as a Bearish Engulfing pattern. But why only two sessions? ... Read more
Finding trades using two charting methods
by PRASHANT SHAH -
A method of identifying trades using properties of two charting techniques. 1) Look for Anchor column in Point & Figure. I call Long column of ‘X’s or ‘O’s as Anchor column. They represent strong trend / momentum. 2) Look for breakout in that column. Better if there is a major pattern like bear trap, follow-through ... Read more
Identifying important Demand-Supply level.
by PRASHANT SHAH -
A method of identifying important Demand-Supply price level. Principle of Polarity is a popular concept. It says that once a resistance is breached (Demand > Supply), it acts as a support (Demand level) next time when that level is approached. Once a support is broken (Supply > Demand), it acts as a resistance next time (Supply ... Read more
