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
Relative Strength Patterns
by PRASHANT SHAH -
Before we discuss more about relative strength and ratio charts, it is important to define relative strength patterns clearly. I am collating the observations and the concepts that we have discussed thus far to define relative strength patterns. The patterns are defined based on the concepts and understanding the behaviour of the numerator vis a ... Read more
Ratio chart
by PRASHANT SHAH -
In the previous chapters, we discussed that the nature of outperformance and underperformance depends on the behaviour of the stock and index, or the two instruments that we are comparing and analysing. We can plot the chart of the two instruments and analyse their behaviour. Given below is a daily candlestick chart of Nifty 50 ... Read more
Strength & Weakness
by PRASHANT SHAH -
We often use the words strength and weakness in markets about stocks and instruments. We often say that a particular stock or instrument is strong. This typically indicates that the behaviour of the instrument is more bullish. There are numerous tools to arrive at this conclusion, including the simple screen or tape reading. I believe ... Read more
