Bibliography
by PRASHANT SHAH -
BIBLIOGRAPHY — Aby, Carroll D. J. Point & Figure Charting: The Complete Guide. Grinville, SC: Traders Press Inc., 1996. — Bollinger, John. Bollinger on Bollinger Bands, New York, NY: McGraw-Hill, 2002. — Bulkowski, Thomas N. Encyclopaedia of Chart Patterns. New York, NY: John Wiley & Sos, Inc., 2000. — Carney, Scott M. Harmonic Trading, Volume ... Read more
Asset, Sector and Stock Selection
by PRASHANT SHAH -
Asset class analysis Let us consider a scenario to understand the role of overall market mood or sentiment. Suppose say you are not in a good mood or feeling low and depressed. If someone were to ask you to participate in a sport or a game, what will be your response? The typical response will ... Read more
Sector analysis
by PRASHANT SHAH -
Selection of Denominator We have discussed that the trend of the denominator is an important aspect of relative strength analysis. For the large-cap stocks, the Nifty 50 index would be a logical choice to be used as the denominator or as the benchmark. Even for derivative traders, the Nifty 50 index would be the logical ... Read more
Trading and Investment
by PRASHANT SHAH -
We have discussed the study and the importance of relative strength. The inclusion of relative strength analysis in your routine will be useful from a trading and investment perspective. Here are a few aspects where relative strength study will be helpful. Market, sector and stock selection.Understanding the strength of the trend and the market phase ... Read more
Pair Trading
by PRASHANT SHAH -
As the ratio chart is calculated using the price of two instruments, this methodology may be used for pair trading too. Pair trading essentially means taking contra trades in two different instruments. For instance, you may take a long trade in instrument X and simultaneously go short in instrument Y. This is a pair trade, ... Read more
Ranking and Trading
by PRASHANT SHAH -
Ranking the stocks based on some criteria is easy and useful. We can rank the stocks based on numerous parameters such as price action, momentum and price performance. You can also develop your ranking method for stocks by understanding these concepts. Typically stocks are ranked based on the price charts, but you can rank them ... Read more
