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
RSI on Ratio chart
by PRASHANT SHAH -
RSI We can plot oscillator and momentum indicators on the ratio chart as well. Devised by J. Welles Wilder, RSI or the Relative Strength Index is one the most popular indicators used in technical analysis. Let us try to understand the underlying formula and logic behind this indicator.The RSI indicator is calculated on closing prices. We ... Read more
Summary
by PRASHANT SHAH -
Trend following plus divergence can be used when you combine different types of instruments. I used some important and popular indicators to discuss the concept. I picked major indicators based on average, channels, and oscillators to explain their interpretation on the ratio chart. Ratio charts can be analyzed using other indicators too. Any other indicator ... Read more
Noiseless Relative Strength
by PRASHANT SHAH -
Until now, we discussed the ratio chart and relative strength indicators that are plotted in the line chart format and plotted using closing prices of instruments. It is not a common practice to plot ratio charts in candlestick format. A candle consists of Open, High, Low and Closing prices. It is not logical to divide ... Read more
