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
Normalisation of ratio chart
by PRASHANT SHAH -
Many analysts use a normalised ratio chart. This is nothing but a ratio chart that is calculated from a particular base date. To do this, we calculate the price of one instrument by another and start the calculation from a chosen date. The base value on the start date is 100. This makes all instruments ... Read more
Ratio Rank Indicator
by PRASHANT SHAH -
We can measure the performance of the security over a period to find top-performing stocks, or we can scan for RS indicator and find the top-performing stocks. If there is strength in the trend, the stock will continue to outperform a greater number of sessions during the period. If we also measure the strength of ... Read more
D Cap-Shoe Indicator
by PRASHANT SHAH -
We discussed techniques of plotting ratio charts separately or below the price. It is a good idea to study relative strength in candlestick charts itself as an overlay. The proprietary D cap-shoe indicator does precisely this. Let us discuss this indicator. A box will be plotted above or below the candle to capture the behaviour ... Read more
