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
Ratio RSI Indicator
by PRASHANT SHAH -
We discussed the RSI indicator in the previous chapter. The RSI indicator can be plotted on the ratio chart as well, and it would capture the strength or the weakness of the numerator. We typically plot the RS indicator on the price chart. But we can also plot the RS indicator of the ratio chart ... Read more
Ratio Chart Analysis
by PRASHANT SHAH -
The concept of plotting a ratio chart of two instruments is hugely underrated. It can help achieve objectivity in analyzing the relative strength and also play a key role in developing trading systems or screeners for stocks in different market environments. In any chart, we can analyze and study the trend and pattern. We can ... Read more
Moving average on Ratio chart
by PRASHANT SHAH -
Moving average Moving average is an extremely popular indicator that can be used in the ratio charts too. The formula for moving average calculation in the ratio chart is the same as the price chart. We calculate the average of the last n periods and plot it as an overlay on the price chart. When ... Read more
