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
AMA Indicator on Ratio chart
by PRASHANT SHAH -
Adaptive Moving Average (AMA) Adaptive Moving Average (AMA) is an indicator developed by Perry J. Kaufman. He explained this indicator in his book Trading System and Methods. It is also known as Kaufman’s Adaptive Moving Average (KAMA). Let me explain the concept of the indicator before we discuss the interpretation. There are two important triggers ... Read more
AMMA Indicator on Ratio chart
by PRASHANT SHAH -
AMMA We can also plot dual moving averages on the chart to identify the crossover of averages. Typically, we need to choose a short-term period average and a long-term period average while plotting a dual moving average. But, instead of using two moving averages, we can use a combination of a regular moving average and ... Read more
Donchian Channel on Ratio chart
by PRASHANT SHAH -
Donchian channel While moving averages can be handy to identify the trend and crossovers in the ratio chart, the channel-based indicators can also be of great help when we wish to identify range breakouts or a breakout above say the high of N days. The simplest and powerful channel indicator is the Donchian channel indicator. ... Read more
