MCX Launches Gold Global Futures Contract : 14.07.2015
MCX Launches Gold Global Futures Contract MCX Gold Global contract to be traded from July 14, 2015 International price based contract exclusive of local factors Mumbai, July 13, 2015: Further expanding its bullion product suite, India’s No. 1 commodity exchange, Multi Commodity Exchange of India Ltd. (MCX) today announced the launch of its unique and innovative futures contract, GOLD GLOBAL, subsequent to receiving permission from the Forward Markets Commission (FMC). This contract will be available for trade on the Exchange from Tuesday, July 14, 2015. Gold Global is an international price based contract, exclusive of import premium, customs duty, sales tax/VAT, and domestic market premium among others. The contract has been designed keeping in mind the requirements of refiners, exporters, jewellers, including larger bullion physical market participants, involved in import of gold bars and re-export of jewellery. These stakeholders having significant exposure to international gold prices, need to effectively hedge against any adverse movement in prices. The existing Gold futures contracts traded on MCX have been providing an efficient hedging mechanism to the market participants exposed to changes in Gold landed prices, which mirrors the Indian spot market perfectly. However, a category of physical participants including Indian refiners, exporters, and jewellers are looking for contracts with less international basis risk and protection against adverse international price movements and this contract will cater to their needs perfectly. The Gold Global contract will be settled based on international prices converted to Indian Rupee based on RBI Reference Rate on the date of expiry, and will have ‘both option’ delivery logic thus offering an inbuilt rupee hedge to the participants. The participants will also get a margin benefit of up to 75 per cent if they trade in spreads between Gold Global and other gold contracts at MCX. Speaking on the occasion, Mr. P. K. Singhal, Joint Managing Director, MCX said, “While the existing gold contracts on the Exchange are already an established benchmark of price and quality in the Indian bullion markets, we seized the opportunity to further entrench our position in this market by launching the Gold Global contract. With its launch, MCX’s bullion basket offerings will include one more variant i.e. Gold Global (200 grams) apart from the existing Gold (1 Kg), Gold Mini (100 grams), Gold Guinea (8 grams), and Gold Petal (1 gram), thus enabling us to meet the needs of most stakeholders of the bullion value chain.” “The Gold Global contract would facilitate hedging by all stakeholders in India’s gold value chain, and therefore is a step towards making India’s gold market more competitive. Separately, it will also reduce dabba trading, which is rampant especially in the Indian bullion futures market,” he added. Key highlights of GOLD GLOBAL contract specifications, appended below: Specifications Parameters Ticker Symbol GOLDGLOBAL Contract Start Day 1st day of contract launch month. If 1st day is a holiday then the following working day Last Trading Day As per the Contract Launch Calendar Trading Trading Session Monday to Friday : 10.00 a.m. to 11.30 / 11.55 p.m. Trading Unit 200 grams Quotation/Base value 10 Grams Price Quote Ex-Ahmedabad (exclusive of all taxes relating to import duty, sales tax/VAT/Octroi as the case may be, and other charges/levies) Tick Size Rs. 1 per 10 grams Initial Margin Minimum 5% or based on SPAN whichever is higher Delivery Quality specification 995 purity It should be serially numbered Gold bars supplied by LBMA approved suppliers or other suppliers as may be approved by MCX to be submitted along with supplier’s quality certificate. Due Date Rate The DDR Price will be calculated on the expiry date based on the International price on that day at RBI reference rate. The USD price of Gold (995 purity) in troy ounce will be multiplied by 0.321507425 to get corresponding price in USD per 10 grams. This will be multiplied by RBI reference rate on that day of expiry to get price in INR per 10 grams and will be rounded to the nearest Rupee. Delivery Logic Both Option About MCX: Having commenced operations on November 10, 2003, Multi Commodity Exchange of India Limited (MCX) is India’s first listed, national-level, electronic, commodity futures exchange with permanent recognition from the Government of India. MCX offers the benefits of fair price discovery and price risk management to the Indian commodity market ecosystem. Various commodities across segments are traded on MCX. These include bullion, energy, metals and agri commodities. The exchange has forged strategic alliances with various international exchanges, as well as Indian and international trade associations. For further details, contact: Shivani Sharma Manager - Communications Mobile: +91 9833376243 shivani.sharma@mcxindia.com
MCX GOLD GLOBAL LAUNCHED TODAY : 14.07.2015
Basic details of GOLD GLOBAL contract at MCX :
Lot size: 200 grams.
Tick size: Re 1 /10 gram.
Profit /loss per 1 Re = Rs 20.
Contract size: 475000 /-approx.
Margin required: 23500 approx.
Conversion factor: 0.321507425.
Expiry: Bi monthly as per International market.
Spread margin benefitsnly 25% of total margins is levied.
DDR: International prices *RBI reference rate *0.321507425.
Delivery logic: Both option .
bsk_research: Benefits of MCX Gold Global contract:
1. Arbitrage between Gold and Gold Global.
2. Lower contract value means lower CTT (10% saving on CTT)
3. NO impact of local taxes and custom duty change.
4. Easy to understand (simple multiplication of international prices into INR).
5. No need to go for separate Rupee hedge.
6. Spread margin benefits in different liquid GOLD contracts of MCX
Technical Analysis Training : What is White Marubozu: Bullish Reversal/Continuation Pattern?
Technical Analysis Training :
What is White Marubozu: Bullish Reversal/Continuation Pattern?
White Marubozu is a bullish reversal/continuation pattern. It is a large white candlestick with no wicks on either end. It is considered to be an extremely bullish candle. The candle can lead to a continuation of the current uptrend or start of a bearish reversal.
This candle often occurs with high volume. So it becomes very crucial to determine whether it is a continuation or reversal.
What is White Marubozu: Bullish Reversal/Continuation Pattern?
White Marubozu is a bullish reversal/continuation pattern. It is a large white candlestick with no wicks on either end. It is considered to be an extremely bullish candle. The candle can lead to a continuation of the current uptrend or start of a bearish reversal.
This candle often occurs with high volume. So it becomes very crucial to determine whether it is a continuation or reversal.
Technical Analysis Training : What is Upside Tasuki Gap: Bullish Continuation Pattern?
Technical Analysis Training :
What is Upside Tasuki Gap: Bullish Continuation Pattern?
Upside Tasuki Gap is a bullish continuation pattern. Its a three day pattern. In this, a white candle gaps above the previous white candle. Third candle is a black candle, which opens inside the body of second candle.
Strategy: As its a bullish continuation pattern, one should trade in the preceding direction of the pattern. One can go long on the close of third candle.
What is Upside Tasuki Gap: Bullish Continuation Pattern?
Upside Tasuki Gap is a bullish continuation pattern. Its a three day pattern. In this, a white candle gaps above the previous white candle. Third candle is a black candle, which opens inside the body of second candle.
Strategy: As its a bullish continuation pattern, one should trade in the preceding direction of the pattern. One can go long on the close of third candle.
Technical Analysis Training : What is Two Crows: Bearish Reversal Pattern?
Technical Analysis Training :
What is Two Crows: Bearish Reversal Pattern?
Two crows is a bearish reversal pattern. In this pattern, during an uptrend, after opening gap-up, market closes lower. Next day, a black candle occurs, which fills the gap, and thus Two Crows pattern is formed. The pattern is an indicator of eroding uptrend and a warning about a possible reversal in trend.
In this pattern, first candle is a long white candle, closing near its high. Second candle is a small black candle, which gaps away from the previous days close, and finishes near its low, which is still above the high of the first candle. Last candle opens inside the body of the second candle, and fills the gap between the first and second candle.
Strategy: Short positions can be initiated post successful breaking of low of third candle.
What is Two Crows: Bearish Reversal Pattern?
Two crows is a bearish reversal pattern. In this pattern, during an uptrend, after opening gap-up, market closes lower. Next day, a black candle occurs, which fills the gap, and thus Two Crows pattern is formed. The pattern is an indicator of eroding uptrend and a warning about a possible reversal in trend.
In this pattern, first candle is a long white candle, closing near its high. Second candle is a small black candle, which gaps away from the previous days close, and finishes near its low, which is still above the high of the first candle. Last candle opens inside the body of the second candle, and fills the gap between the first and second candle.
Strategy: Short positions can be initiated post successful breaking of low of third candle.
Technical Analysis Training : What is Tri-Star Bottom, Tri-Star Top?
Technical Analysis Training :
What is Tri-Star Bottom, Tri-Star Top?
Tri-Star is a candlestick pattern comprised of three dojis. This pattern can occur at market tops and bottoms. Three dojis represent indecision, leading to reversal. This pattern is usually accompanied with light volume. However, the reliability of this pattern is low, so it is advisable to wait for confirmation.
Tri-Star Bottom: In Tri-Star Bottom, middle doji is lower than the first and last.
Strategy: One should wait for the highest high to be exceeded successfully, before going long. Stop loss should be placed below the low of the middle doji.
Tri-Star Top: In Tri-Star Top, middle doji is higher than the first and last.
Strategy: One should wait for the lowest low to be exceeded successfully, before entering a short trade. Stop loss should be placed above the high of the middle doji.
What is Tri-Star Bottom, Tri-Star Top?
Tri-Star is a candlestick pattern comprised of three dojis. This pattern can occur at market tops and bottoms. Three dojis represent indecision, leading to reversal. This pattern is usually accompanied with light volume. However, the reliability of this pattern is low, so it is advisable to wait for confirmation.
Tri-Star Bottom: In Tri-Star Bottom, middle doji is lower than the first and last.
Strategy: One should wait for the highest high to be exceeded successfully, before going long. Stop loss should be placed below the low of the middle doji.
Tri-Star Top: In Tri-Star Top, middle doji is higher than the first and last.
Strategy: One should wait for the lowest low to be exceeded successfully, before entering a short trade. Stop loss should be placed above the high of the middle doji.
Technical Analysis Training : What is Three White Soldiers: Bullish Reversal Pattern?
Technical Analysis Training :
What is Three White Soldiers: Bullish Reversal Pattern?
Three White Soldiers is a bullish reversal pattern and is opposite of three black crows. This pattern consists of three large consecutive white candles with close at or near their high levels. If the first candle appears at previous support level, then there may be more strength and gains.
It is good to trade the stock once third candle appears. The first two candles often provide support on pullbacks.
This pattern should be confirmed with previous support and resistance.
What is Three White Soldiers: Bullish Reversal Pattern?
Three White Soldiers is a bullish reversal pattern and is opposite of three black crows. This pattern consists of three large consecutive white candles with close at or near their high levels. If the first candle appears at previous support level, then there may be more strength and gains.
It is good to trade the stock once third candle appears. The first two candles often provide support on pullbacks.
This pattern should be confirmed with previous support and resistance.
Technical Analysis Training : What is Three Stars in the South: Bullish Reversal Pattern?
Technical Analysis Training :
What is Three Stars in the South: Bullish Reversal Pattern?
Three stars in the South is a bullish reversal pattern. This pattern is seen near the end of the downtrend and consists of 3 candles. It shows deteriorating of selling pressure. In this pattern, first candle is a large black candle, having small or no upper shadow, but has a long lower shadow. Second candle is a smaller replica of previous candle. It opens gap up but ends lower. Second candle get engulfed completely by the first candle. Third candle gets engulfed completely by the second candle and is a black marubozu.
Strategy: Long positions can be initiated after the high of second candle is broken on upside.
What is Three Stars in the South: Bullish Reversal Pattern?
Three stars in the South is a bullish reversal pattern. This pattern is seen near the end of the downtrend and consists of 3 candles. It shows deteriorating of selling pressure. In this pattern, first candle is a large black candle, having small or no upper shadow, but has a long lower shadow. Second candle is a smaller replica of previous candle. It opens gap up but ends lower. Second candle get engulfed completely by the first candle. Third candle gets engulfed completely by the second candle and is a black marubozu.
Strategy: Long positions can be initiated after the high of second candle is broken on upside.
Technical Analysis Training : What is Three Outside Up: Bullish Reversal Pattern?
Technical Analysis Training :
What is Three Outside Up: Bullish Reversal Pattern?
Three Outside Up pattern is another name for confirmed Bullish Engulfing Pattern. It is a bullish reversal pattern. In this pattern, first candle is a small black candle, closing at its low. Second candle engulfs completely the previous candle and closes near its high, thus creating a lon, white candle. Third candle breaks the high of the second candle and closes even higher.
Strategy: The high of the third candle should be broken successfully, before initiating new long positions
What is Three Outside Up: Bullish Reversal Pattern?
Three Outside Up pattern is another name for confirmed Bullish Engulfing Pattern. It is a bullish reversal pattern. In this pattern, first candle is a small black candle, closing at its low. Second candle engulfs completely the previous candle and closes near its high, thus creating a lon, white candle. Third candle breaks the high of the second candle and closes even higher.
Strategy: The high of the third candle should be broken successfully, before initiating new long positions
Technical Analysis Training : What is Three Outside Down: Bearish Reversal Pattern?
Technical Analysis Training :
What is Three Outside Down: Bearish Reversal Pattern?
Three Outside Down Pattern is another name for the Confirmed Bearish Engulfing Pattern. It is a bearish reversal pattern. In this pattern, first candle is a small white candle, which closes near its high. Second candle is a long black candle, which completely engulfs the first candle, closes near its low, thus creating a bearish engulfing pattern. Third candle breaks the low of the second candle, and closes near its low.
Strategy: Short positions can be initiated once low of the third candlestick is broken
What is Three Outside Down: Bearish Reversal Pattern?
Three Outside Down Pattern is another name for the Confirmed Bearish Engulfing Pattern. It is a bearish reversal pattern. In this pattern, first candle is a small white candle, which closes near its high. Second candle is a long black candle, which completely engulfs the first candle, closes near its low, thus creating a bearish engulfing pattern. Third candle breaks the low of the second candle, and closes near its low.
Strategy: Short positions can be initiated once low of the third candlestick is broken
Technical Analysis Training : What is Three Inside Down: Bearish Reversal Pattern?
Technical Analysis Training :
What is Three Inside Down: Bearish Reversal Pattern?
The Bearish Three Inside Down Pattern is another name for the Confirmed Bearish Harami Pattern. Its a bearish reversal pattern. In this pattern, first candle is a long white candle, which closes near its high. Second candle is a small black candle, which gaps away from the first candle and closes inside the body of the first candle, thus creating a harami pattern. Third candle exceeds the lows of the first two candles.
Strategy: Short positions can be created once the low of the third candle is broken successfully. Size of third candle often provides some indication to the strength of the reversal pattern.
What is Three Inside Down: Bearish Reversal Pattern?
The Bearish Three Inside Down Pattern is another name for the Confirmed Bearish Harami Pattern. Its a bearish reversal pattern. In this pattern, first candle is a long white candle, which closes near its high. Second candle is a small black candle, which gaps away from the first candle and closes inside the body of the first candle, thus creating a harami pattern. Third candle exceeds the lows of the first two candles.
Strategy: Short positions can be created once the low of the third candle is broken successfully. Size of third candle often provides some indication to the strength of the reversal pattern.
Technical Analysis Training : What is Three Black Crows: Bearish Reversal Pattern?
Technical Analysis Training :
What is Three Black Crows: Bearish Reversal Pattern?
Three Black Crows is a bearish reversal pattern. The pattern is seen after an uptrend. It consists of three large, consecutive declining black candles. Criteria for this formation is that all the three candles should close near the lows and each candle should open within the prior candles' body. However, this has an exception when the first candle of this formation opens in a gap.
Traders should keep patience or wait for counter-trend rally before exiting long positions or entering into short position. Reason behind this is that the stock could have had a long pullback when the third candle forms. Hence, one should wait for a bounce before going short or exiting longs.
This pattern should be confirmed with previous support and resistance.
What is Three Black Crows: Bearish Reversal Pattern?
Three Black Crows is a bearish reversal pattern. The pattern is seen after an uptrend. It consists of three large, consecutive declining black candles. Criteria for this formation is that all the three candles should close near the lows and each candle should open within the prior candles' body. However, this has an exception when the first candle of this formation opens in a gap.
Traders should keep patience or wait for counter-trend rally before exiting long positions or entering into short position. Reason behind this is that the stock could have had a long pullback when the third candle forms. Hence, one should wait for a bounce before going short or exiting longs.
This pattern should be confirmed with previous support and resistance.
Technical Analysis Training : What is technical analysis?
Technical Analysis Training :
What is technical analysis?
Technical analysis is all about studying stock price graphs and a few momentum oscillators derived thereof. It must be understood that technical studies are based entirely on prices and do not include balance sheets, P&L accounts (fundamental analysis), the assumption being that the markets are efficient and all possible price sensitive information is built into the price graph of a security / index.
Therefore, technical analysis supports the efficient market theory as against the "random walk theory" which supports the belief that stocks can be bought / sold on random events like flipping a coin!!! Technical analysis is more dynamic as compared to fundamental analysis based on one simple argument - fundamental analysts depend on corporate events like quarterly results and special announcements like earnings guidance and policy changes in operations to generate a buy / sell recommendation.
If fundamental analysis was the single most reliable indicator of trends, prices would predominantly fluctuate only 4 - 5 times a year - around quarterly results and special announcements like mergers and acquisitions etc!! Why would prices fluctuate almost daily? If the prices fluctuate ever so often, is there a way to forecast them? Yes according to technical analysis!!
What is technical analysis?
Technical analysis is all about studying stock price graphs and a few momentum oscillators derived thereof. It must be understood that technical studies are based entirely on prices and do not include balance sheets, P&L accounts (fundamental analysis), the assumption being that the markets are efficient and all possible price sensitive information is built into the price graph of a security / index.
Therefore, technical analysis supports the efficient market theory as against the "random walk theory" which supports the belief that stocks can be bought / sold on random events like flipping a coin!!! Technical analysis is more dynamic as compared to fundamental analysis based on one simple argument - fundamental analysts depend on corporate events like quarterly results and special announcements like earnings guidance and policy changes in operations to generate a buy / sell recommendation.
If fundamental analysis was the single most reliable indicator of trends, prices would predominantly fluctuate only 4 - 5 times a year - around quarterly results and special announcements like mergers and acquisitions etc!! Why would prices fluctuate almost daily? If the prices fluctuate ever so often, is there a way to forecast them? Yes according to technical analysis!!
Technical Analysis Training : What is Shooting Star: Bearish Reversal Pattern?
Technical Analysis Training :
What is Shooting Star: Bearish Reversal Pattern?
Shooting Star is a bearish reversal pattern, appearing at market top. Its a small real body with long upper shadow and no lower shadow, which gaps away from the previous candle. This pattern appears in an uptrend. A white candle is seen on first day. Next day, gap up opening happens. This candle appears as a small real body, with upper shadow at least twice as long as the real body. It has no lower shadow.
The pattern indicates that the uptrend is near to an end. Colour of the real body is not important. Gap is not always necessary.
Strategy: A confirmation is required on next day to ensure that uptrend has reversed or closer to the reversal. This confirmation can be in the form of a black candle, a large gap down or a lower close on next trading day.
What is Shooting Star: Bearish Reversal Pattern?
Shooting Star is a bearish reversal pattern, appearing at market top. Its a small real body with long upper shadow and no lower shadow, which gaps away from the previous candle. This pattern appears in an uptrend. A white candle is seen on first day. Next day, gap up opening happens. This candle appears as a small real body, with upper shadow at least twice as long as the real body. It has no lower shadow.
The pattern indicates that the uptrend is near to an end. Colour of the real body is not important. Gap is not always necessary.
Strategy: A confirmation is required on next day to ensure that uptrend has reversed or closer to the reversal. This confirmation can be in the form of a black candle, a large gap down or a lower close on next trading day.
Technical Analysis Training : What is Relative Strength Comparative?
Technical Analysis Training :
What is Relative Strength Comparative?
Technical analysis offers a few wonderful tools with the help of which, we can check out the Relative Strength Comparative, RSC. As the name suggests, it is a comparative measure of strength vis-à-vis a benchmark or a share or a sector. The best way you can put the RSC to use before initiating a trade is to check out how your scrip has performed historically. It can be against the indices, it's peers in the same sector and or a separate asset class like say, commodities. To that effect, RSC helps in determining which scrip would be the most profitable investment.
Highly volatile scrips rise or fall faster than the indices, but may not make large net moves in any single direction. On the other hand, high RSC scrips will rise faster than the indices but fall slower than the indices in a downturn. To that extent, they are solid market outperformers and have unidirectional upward movement. Needless to say, buying scrips with the highest RSC reading among the available choice of stocks will ensure a greater probability of capital appreciation.
What is Relative Strength Comparative?
Technical analysis offers a few wonderful tools with the help of which, we can check out the Relative Strength Comparative, RSC. As the name suggests, it is a comparative measure of strength vis-à-vis a benchmark or a share or a sector. The best way you can put the RSC to use before initiating a trade is to check out how your scrip has performed historically. It can be against the indices, it's peers in the same sector and or a separate asset class like say, commodities. To that effect, RSC helps in determining which scrip would be the most profitable investment.
Highly volatile scrips rise or fall faster than the indices, but may not make large net moves in any single direction. On the other hand, high RSC scrips will rise faster than the indices but fall slower than the indices in a downturn. To that extent, they are solid market outperformers and have unidirectional upward movement. Needless to say, buying scrips with the highest RSC reading among the available choice of stocks will ensure a greater probability of capital appreciation.
Technical Analysis Training : What is Piercing Line: Bullish Reversal pattern?
Technical Analysis Training :
What is Piercing Line: Bullish Reversal pattern?
It is a bullish reversal pattern. It occurs in a downtrend and is comprised of two candlesticks. The first candlestick is a long black candle, accompanied by high volume. The next candlestick makes a lower low, but then rallies to close above the midpoint of the first candlestick, but not above the opening of that candle. This pattern is one of the first signs that a potential bullish reversal is in play.
Strategy: Traders should wait for the high of the first candlestick to be exceeded prior to taking a long position. Stoploss can be placed below the low of the first candlestick. The more the second candle closes above the mid-point of the first candlestick, the greater the odds of a successful pattern. The potential buyers start thinking that new lows may not hold and perhaps it is time to take long positions.
What is Piercing Line: Bullish Reversal pattern?
It is a bullish reversal pattern. It occurs in a downtrend and is comprised of two candlesticks. The first candlestick is a long black candle, accompanied by high volume. The next candlestick makes a lower low, but then rallies to close above the midpoint of the first candlestick, but not above the opening of that candle. This pattern is one of the first signs that a potential bullish reversal is in play.
Strategy: Traders should wait for the high of the first candlestick to be exceeded prior to taking a long position. Stoploss can be placed below the low of the first candlestick. The more the second candle closes above the mid-point of the first candlestick, the greater the odds of a successful pattern. The potential buyers start thinking that new lows may not hold and perhaps it is time to take long positions.
Technical Analysis Training : What is Opening Marubozu?
Technical Analysis Training :
What is Opening Marubozu?
Opening Marubozu has no shadow extending from the opening level. It means, if the stock ended up, there would be no lower shadow, and if the stock ended down, then there would be no upper shadow.
It is not a powerful signal like closing marubozu, as closing level is important than opening. It is important to confirm that the primary trend is in place. One should wait for the high or the low of the candle to be exceeded before initiating a position in the direction of Opening Marubozu.
White Opening Marubozu is a long white single candlestick, having an upper shadow, but no lower shadow. It is considered to be a strong bullish pattern.
Black Opening Marubozu is a long black single candlestick, having a lower shadow, but no upper shadow. It is considered to be a strong bearish pattern.
What is Opening Marubozu?
Opening Marubozu has no shadow extending from the opening level. It means, if the stock ended up, there would be no lower shadow, and if the stock ended down, then there would be no upper shadow.
It is not a powerful signal like closing marubozu, as closing level is important than opening. It is important to confirm that the primary trend is in place. One should wait for the high or the low of the candle to be exceeded before initiating a position in the direction of Opening Marubozu.
White Opening Marubozu is a long white single candlestick, having an upper shadow, but no lower shadow. It is considered to be a strong bullish pattern.
Black Opening Marubozu is a long black single candlestick, having a lower shadow, but no upper shadow. It is considered to be a strong bearish pattern.
Technical Analysis Training : What is One White Soldier: Bullish Reversal Pattern?
Technical Analysis Training :
What is One White Soldier: Bullish Reversal Pattern?
One White Soldier is a bullish reversal pattern. It appears on charts after a clear downtrend. In this pattern, first candle is a long black candle. Next candle opens above the closing level of previous candle, and closes near the high level of the day. The closing is also above the high of the previous day. Criteria for this pattern is that both the candles should be "long".
Long positions can be entered into once high level of the white candle is exceeded.
What is One White Soldier: Bullish Reversal Pattern?
One White Soldier is a bullish reversal pattern. It appears on charts after a clear downtrend. In this pattern, first candle is a long black candle. Next candle opens above the closing level of previous candle, and closes near the high level of the day. The closing is also above the high of the previous day. Criteria for this pattern is that both the candles should be "long".
Long positions can be entered into once high level of the white candle is exceeded.
Technical Analysis Training : What is One Black Crow: Bearish Reversal Pattern?
Technical Analysis Training :
What is One Black Crow: Bearish Reversal Pattern?
One Black Crow is a bearish reversal pattern. It appears on charts after a clear uptrend. In this pattern, first candle is a long white candle. Next candle opens below the closing level of previous candle and it closes below the low level of the white candle. Criteria for this pattern is that both the candles should be "long".
Strategy: Short positions can be entered into once low of the black candle is exceeded.
What is One Black Crow: Bearish Reversal Pattern?
One Black Crow is a bearish reversal pattern. It appears on charts after a clear uptrend. In this pattern, first candle is a long white candle. Next candle opens below the closing level of previous candle and it closes below the low level of the white candle. Criteria for this pattern is that both the candles should be "long".
Strategy: Short positions can be entered into once low of the black candle is exceeded.
Technical Analysis Training : What is Long-legged Doji: Bullish Reversal, Bearish Reversal?
Technical Analysis Training :
What is Long-legged Doji: Bullish Reversal, Bearish Reversal?
Long-legged doji is a candle with long upper and lower shadows and a small real body. The pattern shows that there is an indecision between the buyers and the sellers, and that the market is approaching transition period.
Long positions can be taken in case of Bullish Long Legged Doji, once high of the candle is exceeded.
Shorts can be initiated once the low of the candle is broken, in case of Bearish Long Legged Doji.
Bullish:
Bullish Long Legged Doji has very long shadows on both the ends. The patterns shows indecision of buyers and sellers. It is a bullish reversal pattern. In this pattern, market is in a bearish mood and is in downtrend. Then, a Long Legged Doji appears, which gaps in the current trend.
This pattern requires confirmation by way of opposite move to the prior trend on next day.
Bearish:
Bearish Long Legged Doji has very long shadows on both the ends. The pattern shows indecision of buyers and sellers. It is a bearish reversal pattern. In this, market is in a bullish mood and is in uptrend. Then, a Long Logged Doji appears, which gaps in the current trend.
What is Long-legged Doji: Bullish Reversal, Bearish Reversal?
Long-legged doji is a candle with long upper and lower shadows and a small real body. The pattern shows that there is an indecision between the buyers and the sellers, and that the market is approaching transition period.
Long positions can be taken in case of Bullish Long Legged Doji, once high of the candle is exceeded.
Shorts can be initiated once the low of the candle is broken, in case of Bearish Long Legged Doji.
Bullish:
Bullish Long Legged Doji has very long shadows on both the ends. The patterns shows indecision of buyers and sellers. It is a bullish reversal pattern. In this pattern, market is in a bearish mood and is in downtrend. Then, a Long Legged Doji appears, which gaps in the current trend.
This pattern requires confirmation by way of opposite move to the prior trend on next day.
Bearish:
Bearish Long Legged Doji has very long shadows on both the ends. The pattern shows indecision of buyers and sellers. It is a bearish reversal pattern. In this, market is in a bullish mood and is in uptrend. Then, a Long Logged Doji appears, which gaps in the current trend.
Technical Analysis Training : What is Ladder Top: Bearish Reversal Pattern?
Technical Analysis Training :
What is Ladder Top: Bearish Reversal Pattern?
Ladder Top is a bearish reversal pattern and it appears at the end of uptrend. It consists of 5 candles. The pattern gives early signs of deterioration of uptrend.
First three candles of this pattern are three long white candles, which resembles the three white soldiers formation. Fourth day candle closes higher, but with a long lower shadow, which goes into the body of the third candle. Fifth day candle is a long black one which opens below the body of the fourth day candle.
Strategy: Short positions can be entered into once low of fifth candle is exceeded.
What is Ladder Top: Bearish Reversal Pattern?
Ladder Top is a bearish reversal pattern and it appears at the end of uptrend. It consists of 5 candles. The pattern gives early signs of deterioration of uptrend.
First three candles of this pattern are three long white candles, which resembles the three white soldiers formation. Fourth day candle closes higher, but with a long lower shadow, which goes into the body of the third candle. Fifth day candle is a long black one which opens below the body of the fourth day candle.
Strategy: Short positions can be entered into once low of fifth candle is exceeded.
Technical Analysis Training : What is Ladder Bottom: Bullish Reversal Pattern?
Technical Analysis Training :
What is Ladder Bottom: Bullish Reversal Pattern?
Ladder Bottom is a bullish reversal pattern and it appears at the end of downtrend. It consists of 5 candles. The pattern gives early signs of deterioration of downtrend.
First three candles of this pattern are long black candles, which resembles the three black crows formation. Fourth day candle closes lower, but with a long upper shadow, which goes into the body of the third candle. Fifth day candle is a long white one which opens above the body of the fourth day candle.
Strategy: Long positions can be entered into once high of the fifth candle is exceeded.
What is Ladder Bottom: Bullish Reversal Pattern?
Ladder Bottom is a bullish reversal pattern and it appears at the end of downtrend. It consists of 5 candles. The pattern gives early signs of deterioration of downtrend.
First three candles of this pattern are long black candles, which resembles the three black crows formation. Fourth day candle closes lower, but with a long upper shadow, which goes into the body of the third candle. Fifth day candle is a long white one which opens above the body of the fourth day candle.
Strategy: Long positions can be entered into once high of the fifth candle is exceeded.
Technical Analysis : What is Kicking pattern: Bullish Reversal, Bearish Reversal pattern?
What is Kicking pattern: Bullish Reversal, Bearish Reversal pattern?
Kicking pattern is a two-candle reversal pattern. On the chart, it seems as if price is kicking away the current trend, hence the name, Kicking.
Bullish kicking pattern is comprised of a black marubozu followed by a white marubozu. This pattern is seen when
a) a marubozu of white follows a marubozu of black, and
b) a gap between these marubozu
Strategy: In bullish kicking pattern, long positions can be entered into once high of the white marubozu is exceeded
Bearish kicking pattern is comprised of a white marubozu followed by a black marubozu. This pattern is seen when
a) a marubozu of black follows a marubozu of white, and
b) a gap between these marubozu
Strategy: In bearish kicking pattern, short positions can be entered into once low of black marubozu is exceeded.
Kicking pattern is a two-candle reversal pattern. On the chart, it seems as if price is kicking away the current trend, hence the name, Kicking.
Bullish kicking pattern is comprised of a black marubozu followed by a white marubozu. This pattern is seen when
a) a marubozu of white follows a marubozu of black, and
b) a gap between these marubozu
Strategy: In bullish kicking pattern, long positions can be entered into once high of the white marubozu is exceeded
Bearish kicking pattern is comprised of a white marubozu followed by a black marubozu. This pattern is seen when
a) a marubozu of black follows a marubozu of white, and
b) a gap between these marubozu
Strategy: In bearish kicking pattern, short positions can be entered into once low of black marubozu is exceeded.
Technical Analysis : What is Inverted Hammer: Bullish Reversal Pattern?
What is Inverted Hammer: Bullish Reversal Pattern?
Inverted Hammer is a bullish reversal pattern. This pattern is characterized by a long upper shadow and a small real body, appearing after a long black real body. It resembles with Bearish Shooting Star.
This pattern appears in a downtrend. In this pattern, a long black candle appears on first day. On second day, a small real body appears, which forms at the lower end of range. Second day's candle has upper shadow, which is at least twice as long as the real body and does not have lower shadow. Colour of the real body is not of much importance.
Strategy: A confirmation can be seen in the form of next day opening above hammer's body of a white candle with higher prices. Long positions can be initiated post confirmation.
Inverted Hammer is a bullish reversal pattern. This pattern is characterized by a long upper shadow and a small real body, appearing after a long black real body. It resembles with Bearish Shooting Star.
This pattern appears in a downtrend. In this pattern, a long black candle appears on first day. On second day, a small real body appears, which forms at the lower end of range. Second day's candle has upper shadow, which is at least twice as long as the real body and does not have lower shadow. Colour of the real body is not of much importance.
Strategy: A confirmation can be seen in the form of next day opening above hammer's body of a white candle with higher prices. Long positions can be initiated post confirmation.
Technical Analysis : What is Homing Pigeon: Bullish Reversal Pattern?
What is Homing Pigeon: Bullish Reversal Pattern?
Homing Pigeon is a bullish reversal pattern. It comprises of two black candles. The pattern appears after a clear downtrend. First candle is a long black candle. Second candle is an inside bar, which is also a black candle. Second candle closes inside the body of the first candle.
This pattern is a sign that current trend may be losing steam.
Long positions can be entered into after the high of the first candle is exceeded. Stop loss can be placed below the low of the first candle.
Homing Pigeon is a bullish reversal pattern. It comprises of two black candles. The pattern appears after a clear downtrend. First candle is a long black candle. Second candle is an inside bar, which is also a black candle. Second candle closes inside the body of the first candle.
This pattern is a sign that current trend may be losing steam.
Long positions can be entered into after the high of the first candle is exceeded. Stop loss can be placed below the low of the first candle.
Technical Analysis : What is Hanging Man: Bearish Reversal Pattern?
What is Hanging Man: Bearish Reversal Pattern?
Hanging Man is a bearish reversal pattern, which occurs at the top of a trend. This pattern appears after or during an uptrend. It is a single candlestick pattern. It resembles with Bearish Dragonfly Doji. The only difference is doji has same opening and closing while Hanging Man has a small real body at the upper end. Colour of Hanging Man is not important. However, it is considered as more potent, if its colour is black. Lower shadow of Hanging man should be twice as long as real body. There should be very little or no upper shadow.
Strategy: Hanging Man indicates end of an uptrend, hence, short positions can be initiated post confirmation by way of gap down opening or a lower close or a black candle the next day of Hanging Man day.
Hanging Man is a bearish reversal pattern, which occurs at the top of a trend. This pattern appears after or during an uptrend. It is a single candlestick pattern. It resembles with Bearish Dragonfly Doji. The only difference is doji has same opening and closing while Hanging Man has a small real body at the upper end. Colour of Hanging Man is not important. However, it is considered as more potent, if its colour is black. Lower shadow of Hanging man should be twice as long as real body. There should be very little or no upper shadow.
Strategy: Hanging Man indicates end of an uptrend, hence, short positions can be initiated post confirmation by way of gap down opening or a lower close or a black candle the next day of Hanging Man day.
Technical Analysis : What is Hammer: Bullish Reversal Pattern?
What is Hammer: Bullish Reversal Pattern?
Hammer is a bullish reversal pattern, which occurs at the bottom of a trend. This pattern appears after or during a downtrend. It is a single candlestick pattern. It resembles with Bullish Dragonfly Doji. The only difference is doji has same opening and closing while Hammer has a small real body at the upper end. Colour of Hammer is not important. However, it is considered as more potent, if its colour is white. Lower shadow of Hammer should be twice as long as real body. There should be very little or no upper shadow.
Strategy: Long positions can be initiated if there is a large gap up or a higher close the next day of Hammer, which is considered as a confirmation of reversal of trend.
Hammer is a bullish reversal pattern, which occurs at the bottom of a trend. This pattern appears after or during a downtrend. It is a single candlestick pattern. It resembles with Bullish Dragonfly Doji. The only difference is doji has same opening and closing while Hammer has a small real body at the upper end. Colour of Hammer is not important. However, it is considered as more potent, if its colour is white. Lower shadow of Hammer should be twice as long as real body. There should be very little or no upper shadow.
Strategy: Long positions can be initiated if there is a large gap up or a higher close the next day of Hammer, which is considered as a confirmation of reversal of trend.
Technical Analysis : What is Four Price Doji?
What is Four Price Doji?
Four price doji is a candlestick where open, high, low, and close are all the same. This candle reflects the highest extent of indecision between bulls and bears. This candle is normally seen on low trading volume. It often appears in pre-market and after hours trading.
It is advisable to avoid this candle and not to place too much importance on it.
Four price doji is a candlestick where open, high, low, and close are all the same. This candle reflects the highest extent of indecision between bulls and bears. This candle is normally seen on low trading volume. It often appears in pre-market and after hours trading.
It is advisable to avoid this candle and not to place too much importance on it.
Technical Analysis : What is Dragonfly Doji: Bearish Reversal Pattern?
What is Dragonfly Doji: Bearish Reversal Pattern?
Dragonfly doji is a bearish reversal pattern. It is opposite to the gravestone doji. In this pattern, open, high, and close are at the high of the day.
Strategy: Long positions can be taken once high of the candle is exceeded.
Dragonfly doji is a bearish reversal pattern. It is opposite to the gravestone doji. In this pattern, open, high, and close are at the high of the day.
Strategy: Long positions can be taken once high of the candle is exceeded.
Technical Analysis : What is Downside Tasuki Gap: Bearish Continuation Pattern?
What is Downside Tasuki Gap: Bearish Continuation Pattern?
Downside Tasuki Gap is a three day bearish continuation pattern. It starts with a black candle which gaps below the previous black candle. The third candle is a white candle opening inside the body of the second red candle.
One can go short on the close of the third candle. The trade should be in the direction of the defined trend, which is downtrend in this case.
Downside Tasuki Gap is a three day bearish continuation pattern. It starts with a black candle which gaps below the previous black candle. The third candle is a white candle opening inside the body of the second red candle.
One can go short on the close of the third candle. The trade should be in the direction of the defined trend, which is downtrend in this case.
Technical Analysis : What is Dark Cloud Cover: Bearish Reversal Pattern?
What is Dark Cloud Cover: Bearish Reversal Pattern?
Dark Cloud Cover is a bearish reversal pattern. It appears in an uptrend. This pattern is comprised of 2 candles. First candle is a long white one, accompanied with heavy volume. Next day's candle opens above the previous day's high. But it closes below the mid-point of the first candle. However, the closing of second candle is not below the opening level of white candle.
Strategy: Short positions can be created once the low of the first candle is exceeded. Stop loss can be placed above the high of second candle.
Dark Cloud Cover is a bearish reversal pattern. It appears in an uptrend. This pattern is comprised of 2 candles. First candle is a long white one, accompanied with heavy volume. Next day's candle opens above the previous day's high. But it closes below the mid-point of the first candle. However, the closing of second candle is not below the opening level of white candle.
Strategy: Short positions can be created once the low of the first candle is exceeded. Stop loss can be placed above the high of second candle.
Technical Analysis : What is Closing Marubozu?
What is Closing Marubozu?
Closing Marubozu candles has no shadow extending from the close. Closing Marubozu candles closes at the high or low of the day, depending on the closing of the stock. It means, if the stock closes up, it closes at its high price of the day and if it closes down, then its closing price is equal to its low price for the day.
White Closing Marubozu: It is considered as bullish candle.
Black Closing Marubozu: It is considered as bearish
Closing Marubozu candles has no shadow extending from the close. Closing Marubozu candles closes at the high or low of the day, depending on the closing of the stock. It means, if the stock closes up, it closes at its high price of the day and if it closes down, then its closing price is equal to its low price for the day.
White Closing Marubozu: It is considered as bullish candle.
Black Closing Marubozu: It is considered as bearish
Technical Analysis : What is Bullish Separating Line: Bullish Continuation Pattern?
What is Bullish Separating Line: Bullish Continuation Pattern?
Bullish Separating Line is a bullish continuation pattern and is opposite of Bearish Separating Line. In this pattern, first candle is a long black candle. Second candle opens gap up at first candles' open level and closes up, thus forming a long white candle.
This pattern is traded during a strong uptrend. Long positions can be initiated after the closing of second candles. Traders should make sure that both the candles are of decent size.
Bullish Separating Line is a bullish continuation pattern and is opposite of Bearish Separating Line. In this pattern, first candle is a long black candle. Second candle opens gap up at first candles' open level and closes up, thus forming a long white candle.
This pattern is traded during a strong uptrend. Long positions can be initiated after the closing of second candles. Traders should make sure that both the candles are of decent size.
Technical Analysis : What is Bullish Rising Three Method: Bullish Continuation Pattern?
What is Bullish Rising Three Method: Bullish Continuation Pattern?
Bullish Rising Three Method is a continuation candlestick pattern. It is ideally a five candle pattern in which second, third, and fourth candles are opposite in color of the first candle.
The first candlestick, should be a strong white candle with a wide spread and closing near the day's high. The second, third, and fourth candles should be small black candles which should not break below the lows of the first candle. The pullback by the three candles should be controlled in nature.
This pattern works best for day trading. It is considered to be reliable if three candlesticks consolidation occur right above a whole number. The last candle is another large white candle that rises above the highs of the first candle.
Bullish Rising Three Method is a continuation candlestick pattern. It is ideally a five candle pattern in which second, third, and fourth candles are opposite in color of the first candle.
The first candlestick, should be a strong white candle with a wide spread and closing near the day's high. The second, third, and fourth candles should be small black candles which should not break below the lows of the first candle. The pullback by the three candles should be controlled in nature.
This pattern works best for day trading. It is considered to be reliable if three candlesticks consolidation occur right above a whole number. The last candle is another large white candle that rises above the highs of the first candle.
Technical Analysis : What is Bullish Meeting Lines: Bullish Reversal Pattern?
What is Bullish Meeting Lines: Bullish Reversal Pattern?
Bullish Meeting Lines pattern is a bullish reversal pattern. It happens in a downtrend. In this pattern, first candle is black, correlating the ongoing downtrend. Second candle opens at a new low, but closes at previous day's closing level.
Strategy: Traders can take long position only after the high of the first candle is exceeded. Stop loss should be placed below the low of second candle.
Bullish Meeting Lines pattern is a bullish reversal pattern. It happens in a downtrend. In this pattern, first candle is black, correlating the ongoing downtrend. Second candle opens at a new low, but closes at previous day's closing level.
Strategy: Traders can take long position only after the high of the first candle is exceeded. Stop loss should be placed below the low of second candle.
Technical Analysis : What is Bullish Mat Hold: Bullish Continuation Pattern?
What is Bullish Mat Hold: Bullish Continuation Pattern?
Bullish Mat Hold is a bullish continuation pattern. It is a variation of Rising Three Methods. The pattern comprises of 5 candles. The pattern is said to be potent when it appears in primary up trend. It is opposite of Bearish Mat Hold pattern.
In this pattern, first candle is a long white candle. Second candle gaps up, but closes lower. Third and fourth candles continue to retrace gains, but with less volume. Fifth candle is a large white candle, making a new high.
Bullish Mat Hold is a bullish continuation pattern. It is a variation of Rising Three Methods. The pattern comprises of 5 candles. The pattern is said to be potent when it appears in primary up trend. It is opposite of Bearish Mat Hold pattern.
In this pattern, first candle is a long white candle. Second candle gaps up, but closes lower. Third and fourth candles continue to retrace gains, but with less volume. Fifth candle is a large white candle, making a new high.
Technical Analysis : What is Bullish Harami: Bullish Reversal Pattern?
What is Bullish Harami: Bullish Reversal Pattern?
Bullish Harami is a bullish reversal pattern. It is characterized by a large black candle, followed by a small white candle. The white candle is contained completely within the previous black candle.
The pattern appears in a downtrend. A long black candle is seen, which is followed by a small white candle, which is completely engulfed by the previous day candle. Shadows need not be compulsorily engulfed, but real body should be.
The market is entering in an indecision or congestion phase post Bullish Harami.
Strategy: A confirmation on the third day in the form of a white candle, large gap up or a higher close makes sure that the downtrend has reversed. Long positions can be initiated post confirmation.
Bullish Harami is a bullish reversal pattern. It is characterized by a large black candle, followed by a small white candle. The white candle is contained completely within the previous black candle.
The pattern appears in a downtrend. A long black candle is seen, which is followed by a small white candle, which is completely engulfed by the previous day candle. Shadows need not be compulsorily engulfed, but real body should be.
The market is entering in an indecision or congestion phase post Bullish Harami.
Strategy: A confirmation on the third day in the form of a white candle, large gap up or a higher close makes sure that the downtrend has reversed. Long positions can be initiated post confirmation.
Technical Analysis : What is Bullish Harami Cross: Bullish Reversal Pattern?
What is Bullish Harami Cross: Bullish Reversal Pattern?
Bullish Harami Cross is a bullish reversal pattern. It appears in a downtrend. In this pattern, a long black candle appears, followed by a doji. This pattern is considered to be more significant than Bullish Harami Pattern.
In this pattern, on first day, a long black candle appears in a downtrend. Next day, it is followed by a doji, which is completely engulfed by the previous large black candle.
Strategy: Next day confirmation (though not required) in the form of white candle, large gap up or a higher close confirms the bottom and can be used to initiate long positions or liquidate short positions.
Bullish Harami Cross is a bullish reversal pattern. It appears in a downtrend. In this pattern, a long black candle appears, followed by a doji. This pattern is considered to be more significant than Bullish Harami Pattern.
In this pattern, on first day, a long black candle appears in a downtrend. Next day, it is followed by a doji, which is completely engulfed by the previous large black candle.
Strategy: Next day confirmation (though not required) in the form of white candle, large gap up or a higher close confirms the bottom and can be used to initiate long positions or liquidate short positions.
Technical Analysis : What is Bullish Engulfing: Bullish Reversal Pattern?
What is Bullish Engulfing: Bullish Reversal Pattern?
Bullish Engulfing is an important bottom reversal pattern. It appears after a downtrend. It's a two candlestick pattern. In this, a large white candle completely engulfs the preceding small black candle. Though it is not necessary for the white candle to engulf the shadows of the previous black candle, it should engulf the entire real body. It's an important bullish reversal signal. Heavy volume on second day of the pattern creates higher probability of trend reversal.
Strategy: Confirmation on the third day in the form of a white candle, large gap up or a higher close can be used to initiate long positions.
Bullish Engulfing is an important bottom reversal pattern. It appears after a downtrend. It's a two candlestick pattern. In this, a large white candle completely engulfs the preceding small black candle. Though it is not necessary for the white candle to engulf the shadows of the previous black candle, it should engulf the entire real body. It's an important bullish reversal signal. Heavy volume on second day of the pattern creates higher probability of trend reversal.
Strategy: Confirmation on the third day in the form of a white candle, large gap up or a higher close can be used to initiate long positions.
Technical Analysis : What is Bullish Belt Hold: Bullish Reversal Pattern?
What is Bullish Belt Hold: Bullish Reversal Pattern?
Bullish Belt Hold is a bullish reversal pattern, appearing in a downtrend. In this pattern, the day opens at its lowest level, but then stock begins to move up and closes near its high, but not necessarily at the highest point of the day. The candle is a White Opening Marubozu. It has a very small upper shadow but no lower shadow.
Strategy: A confirmation with either a white candle, large gap up or a higher close on the next day can be used to initiate long positions.
Bullish Belt Hold is a bullish reversal pattern, appearing in a downtrend. In this pattern, the day opens at its lowest level, but then stock begins to move up and closes near its high, but not necessarily at the highest point of the day. The candle is a White Opening Marubozu. It has a very small upper shadow but no lower shadow.
Strategy: A confirmation with either a white candle, large gap up or a higher close on the next day can be used to initiate long positions.
Technical Analysis : What is Breakaway Pattern: Bearish Reversal Pattern?
What is Breakaway Pattern: Bearish Reversal Pattern?
Breakaway Pattern is a bearish reversal pattern. It consists of 5 candles. In this pattern, the current trend is seen beginning to slow and then filling of the gap is seen. First candle in this formation is a long white candle, which closes near its high. Second candle is a white candle, which gaps up. Third and fourth candles continue in the direction of the current trend and have smaller bodies. Fifth candle is a long black candle, closing inside the gap between first and second candle.
A reversal is confirmed in the form of black candle or a large gap down on sixth day.
Strategy: Short positions can be taken once low of the fifth candle is broken.
Breakaway Pattern is a bearish reversal pattern. It consists of 5 candles. In this pattern, the current trend is seen beginning to slow and then filling of the gap is seen. First candle in this formation is a long white candle, which closes near its high. Second candle is a white candle, which gaps up. Third and fourth candles continue in the direction of the current trend and have smaller bodies. Fifth candle is a long black candle, closing inside the gap between first and second candle.
A reversal is confirmed in the form of black candle or a large gap down on sixth day.
Strategy: Short positions can be taken once low of the fifth candle is broken.
Technical Analysis : What is Black Marubozu?
What is Black Marubozu?
Black Marubozu is a large black candle with no wicks on either end. This candle is considered to be very bearish. This pattern can lead to a continuation of current downtrend or start of a bullish reversal.
It is very critical to determine whether Black Marubozu is a continuation or reversal pattern, as the candle often occurs with high volume
Black Marubozu is a large black candle with no wicks on either end. This candle is considered to be very bearish. This pattern can lead to a continuation of current downtrend or start of a bullish reversal.
It is very critical to determine whether Black Marubozu is a continuation or reversal pattern, as the candle often occurs with high volume
Technical Analysis : What is Bearish Separating Line: Bearish Continuation Pattern?
What is Bearish Separating Line: Bearish Continuation Pattern?
Bearish Separating Line is a bearish continuation pattern. It is exactly opposite to Bullish Separating Line. In this pattern, first candle is a white one in a downtrend, followed by lower gap opening next day. Second day candle is a large black one, whose opening level is equal to previous day's opening level. It closes at lower levels.
Bearish separating lines should be traded during a strong downtrend. Traders should make sure that the two candlesticks in the formation are of a decent size. A short position can be taken after the close of the second candlestick.
Strategy: Short positions can be created post close of second candle. The two candles in this pattern should be of decent size.
Bearish Separating Line is a bearish continuation pattern. It is exactly opposite to Bullish Separating Line. In this pattern, first candle is a white one in a downtrend, followed by lower gap opening next day. Second day candle is a large black one, whose opening level is equal to previous day's opening level. It closes at lower levels.
Bearish separating lines should be traded during a strong downtrend. Traders should make sure that the two candlesticks in the formation are of a decent size. A short position can be taken after the close of the second candlestick.
Strategy: Short positions can be created post close of second candle. The two candles in this pattern should be of decent size.
Technical Analysis : What is Bearish Meeting Lines: Bearish Reversal Pattern?
What is Bearish Meeting Lines: Bearish Reversal Pattern?
Bearish Meeting Lines pattern is a bearish reversal pattern. It takes place in an uptrend. In this pattern, first candle is green, correlating the ongoing uptrend. Second candle opens at a new high, but closes at previous day's closing level.
Traders can initiate short positions only after the low of the first candle is exceeded. Stop loss can be placed above the high level of the second candle
Bearish Meeting Lines pattern is a bearish reversal pattern. It takes place in an uptrend. In this pattern, first candle is green, correlating the ongoing uptrend. Second candle opens at a new high, but closes at previous day's closing level.
Traders can initiate short positions only after the low of the first candle is exceeded. Stop loss can be placed above the high level of the second candle
Technical Analysis : What is Bearish Mat Hold: Bearish Continuation Pattern?
What is Bearish Mat Hold: Bearish Continuation Pattern?
Bearish Mat Hold pattern is a variation of the Falling Three Method. It is comprised of 5 candles.
In this pattern, first candle is a long black candlestick in a downtrend. Second day candle is a white one, which gaps down. Third and fourth day candles continue to retrace losses from the first candle, but with lower volume. Fifth candle is a large black candle, which makes a new low
Bearish Mat Hold pattern is a variation of the Falling Three Method. It is comprised of 5 candles.
In this pattern, first candle is a long black candlestick in a downtrend. Second day candle is a white one, which gaps down. Third and fourth day candles continue to retrace losses from the first candle, but with lower volume. Fifth candle is a large black candle, which makes a new low
Technical Analysis : What is Bearish Harami: Bearish Reversal Pattern?
What is Bearish Harami: Bearish Reversal Pattern?
Bearish Harami is a bearish reversal pattern. It is characterized by a large white candle, followed by a small black candle. The black candle is contained completely within the previous white candle.
The pattern appears in an uptrend. A long white candle is seen, which is followed by a small black candle, which is completely engulfed by the previous day candle. Shadows need not be compulsorily engulfed, but real body should be.
Strategy: A confirmation on the third day in the form of black candle, large gap down or a lower close makes sure that uptrend has reversed. Short positions can be initiated post confirmation.
Bearish Harami is a bearish reversal pattern. It is characterized by a large white candle, followed by a small black candle. The black candle is contained completely within the previous white candle.
The pattern appears in an uptrend. A long white candle is seen, which is followed by a small black candle, which is completely engulfed by the previous day candle. Shadows need not be compulsorily engulfed, but real body should be.
Strategy: A confirmation on the third day in the form of black candle, large gap down or a lower close makes sure that uptrend has reversed. Short positions can be initiated post confirmation.
Technical Analysis : What is Bearish Harami Cross: Bearish Reversal Pattern?
What is Bearish Harami Cross: Bearish Reversal Pattern?
Bearish Harami Cross is a bearish reversal pattern. It appears in an uptrend. In this pattern, a long white candle appears, followed by a doji. This pattern is considered to be more significant than Bearish Harami Pattern.
In this pattern, on first day, a long white candle appears in an uptrend. Next day, it is followed by a doji, which is completely engulfed by the previous large white candle.
Strategy: Next day confirmation (though not required) in the form of black candle, large gap down or a lower close confirms the top and can be used to initiate short positions or liquidate long positions.
Bearish Harami Cross is a bearish reversal pattern. It appears in an uptrend. In this pattern, a long white candle appears, followed by a doji. This pattern is considered to be more significant than Bearish Harami Pattern.
In this pattern, on first day, a long white candle appears in an uptrend. Next day, it is followed by a doji, which is completely engulfed by the previous large white candle.
Strategy: Next day confirmation (though not required) in the form of black candle, large gap down or a lower close confirms the top and can be used to initiate short positions or liquidate long positions.
Technical Analysis : What is Bearish Falling Three Method: Bearish Continuation Pattern?
What is Bearish Falling Three Method: Bearish Continuation Pattern?
It is a bearish continuation pattern. It is opposite of bullish rising three method pattern. The pattern occurs after a downtrend. A strong move down in the first candle is followed by two to four candles of bouncing action (ideally three). Once the bounce has completed, a strong red candle takes the stock below the lows of the first candle.
Some skills are essential to identify if a breakout (breakdown) is supported by more than a few traders while trading bearish falling three method in day trading.
It is a bearish continuation pattern. It is opposite of bullish rising three method pattern. The pattern occurs after a downtrend. A strong move down in the first candle is followed by two to four candles of bouncing action (ideally three). Once the bounce has completed, a strong red candle takes the stock below the lows of the first candle.
Some skills are essential to identify if a breakout (breakdown) is supported by more than a few traders while trading bearish falling three method in day trading.
Technical Analysis : What is Bearish Engulfing: Bearish Reversal Pattern?
What is Bearish Engulfing: Bearish Reversal Pattern?
Bearish Engulfing is one of the important bearish reversal patterns. It appears after an uptrend. It's a two candlestick pattern. In this, a large black candle completely engulfs the preceding small white candle. Though it is not necessary for the black candle to engulf the shadows of the previous white candle, it should engulf the entire real body. Heavy volume on second day of the pattern creates higher probability of trend reversal.
Strategy: Confirmation on the third day in the form of a black candle, large gap down or a lower close can be used to initiate short positions.
Bearish Engulfing is one of the important bearish reversal patterns. It appears after an uptrend. It's a two candlestick pattern. In this, a large black candle completely engulfs the preceding small white candle. Though it is not necessary for the black candle to engulf the shadows of the previous white candle, it should engulf the entire real body. Heavy volume on second day of the pattern creates higher probability of trend reversal.
Strategy: Confirmation on the third day in the form of a black candle, large gap down or a lower close can be used to initiate short positions.
Technical Analysis : What is Bearish Belt Hold: Bearish Reversal Pattern?
What is Bearish Belt Hold: Bearish Reversal Pattern?
Bearish Belt Hold is a bearish reversal pattern, appearing in an uptrend. In this pattern, the day opens at its high level, but then price falls and closes near its low, not necessarily at the lows of the day. The candle is a Black Opening Marubozu. It has very small lower shadow but no upper shadow.
Strategy: A confirmation with either a black candle, large gap down or a lower close on the next day can be used to initiate short positions.
Bearish Belt Hold is a bearish reversal pattern, appearing in an uptrend. In this pattern, the day opens at its high level, but then price falls and closes near its low, not necessarily at the lows of the day. The candle is a Black Opening Marubozu. It has very small lower shadow but no upper shadow.
Strategy: A confirmation with either a black candle, large gap down or a lower close on the next day can be used to initiate short positions.
Technical Analysis : What is Advance Block: Bearish Reversal Pattern?
What is Advance Block: Bearish Reversal Pattern?
Advance Block is a bearish reversal pattern. This is similar to Bullish Three White Soldiers Pattern. It is characterized by three long white candles with consecutively higher closes. Each successive day is weaker than the one preceding it, which suggests that the rally is losing strength and there is possibility of a reversal in trend. This pattern appears after a clear uptrend. This pattern can be used by the traders as an early sign to lock in profits or move up the protective stop loss levels.
Advance Block is a bearish reversal pattern. This is similar to Bullish Three White Soldiers Pattern. It is characterized by three long white candles with consecutively higher closes. Each successive day is weaker than the one preceding it, which suggests that the rally is losing strength and there is possibility of a reversal in trend. This pattern appears after a clear uptrend. This pattern can be used by the traders as an early sign to lock in profits or move up the protective stop loss levels.
Technical Analysis : What is Abandoned Baby Top: Bearish Reversal Pattern?
What is Abandoned Baby Top: Bearish Reversal Pattern?
Abandoned Baby Top is a bearish reversal pattern, which is composed of a doji star, gaping away (including its shadow) from the previous and following candles. This pattern is seen in an uptrend. On first day, a long white candle is seen. On second day, a doji appears, which gaps above the high of previous day candle. On third day, a black candle appears opening gap down. This pattern is similar to three bar reversal pattern.
Impact post Pattern: Declines after abandoned baby top comes in the market very fast, since the ones holding long positions will sell their positions to book profits.
Abandoned Baby Top is a bearish reversal pattern, which is composed of a doji star, gaping away (including its shadow) from the previous and following candles. This pattern is seen in an uptrend. On first day, a long white candle is seen. On second day, a doji appears, which gaps above the high of previous day candle. On third day, a black candle appears opening gap down. This pattern is similar to three bar reversal pattern.
Impact post Pattern: Declines after abandoned baby top comes in the market very fast, since the ones holding long positions will sell their positions to book profits.
Technical Analysis : What is Abandoned Baby Bottom: Bullish Reversal Pattern?
What is Abandoned Baby Bottom: Bullish Reversal Pattern?
Abandoned Baby Bottom is a bullish reversal pattern, which is composed of a doji star, gaping away (including its shadow) from the previous and following candles. This pattern is seen in a downtrend. On first day, a long black candle is seen. On second day, a doji appears, which gaps below the low of previous day candle. On third day, a white candle appears opening gap up. This pattern is similar to three bar reversal pattern.
Impact Post Pattern: Rally post this pattern will be fast as short sellers will be forced to cover fast.
Abandoned Baby Bottom is a bullish reversal pattern, which is composed of a doji star, gaping away (including its shadow) from the previous and following candles. This pattern is seen in a downtrend. On first day, a long black candle is seen. On second day, a doji appears, which gaps below the low of previous day candle. On third day, a white candle appears opening gap up. This pattern is similar to three bar reversal pattern.
Impact Post Pattern: Rally post this pattern will be fast as short sellers will be forced to cover fast.
Technical Analysis : What are Continuation and reversal patterns?
What are Continuation and reversal patterns?
Continuation patterns will help you upgrade your skills on how to identify continuation of bullish patterns and project the price targets. Reversal patterns will warn you of the bull markets exhausting their uptrend.
The continuation patterns are channels, flags and pennants, and trendlines. The reversal patterns are island reversal, moving average crossover, and head and shoulder formation.
Continuation patterns will help you upgrade your skills on how to identify continuation of bullish patterns and project the price targets. Reversal patterns will warn you of the bull markets exhausting their uptrend.
The continuation patterns are channels, flags and pennants, and trendlines. The reversal patterns are island reversal, moving average crossover, and head and shoulder formation.
SHAREWAY SECURITIES LIMITED: SME - IPO HIGHLIGHTS
SHAREWAY SECURITIES LIMITED: SME - IPO HIGHLIGHTS
SHAREWAY SECURITIES LIMITED
SME-IPO HIGHLIGHTS
Issue opens on: 24.Mar.2015 Issue closes on: 31.Mar.2015
Company Profile:
Shareway Securities Limited, an emerging Financial Services Company, was incorporated in the year 2008 with an intention to become a market leader in offering broking services on Equity, F&O and Currency derivatives segment. The company through its resourceful business setup initially focused on pro-trading and on managing the Group Company's investments, on successful fund management strategies the company synergized its efforts on business expansion and started focusing on providing customized services to the high-net worth investors and to the premium corporate clients. On achieving a prominent status in the industry the company extended its business operations in offering a valued retail broking services with superior trading platform and thus it holds a huge customer base that are loyal and delightful on their associateship with Shareway.
Shareway is a part of a business group in manufacturing, financial services, equipment manufacturing, etc., and has been in business since 1974. The Company is managed by the Chairman cum Managing Director, Mr. Murali Kabirdass and the Executive Director Mr. Krishnamoorthy who is veteran in the financial markets and have steered the growth of the Company. The business philosophy of Shareway is always customer oriented and the services are offered under total confidentiality and integrity with the sole purpose of maximizing returns to clients.
Credentials of Shareway!
• Experienced Research team
• Superior trading platform
• Huge customer base
• Equipped infra-structure
• Updated systems networking
Objects of the Issue:
Particulars | Amount (Rs. Lacs) | |
1 | Obtaining Membership of BSE Limited | 100.00 |
2 | Expanding our domestic operations and network of branches | 100.00 |
3 | Enhancement of margin money maintained with the exchanges | 200.00 |
4 | General corporate purposes | 49.80 |
5 | Public Issue Expenses | 50.00 |
Total | 499.80 |
Financial Performance of Shareway:
Particulars | 30.09.14 | 31.03.14 | 31.03.13 | 31.03.12 | 31.03.11 | 31.03.10 |
Income | ||||||
Income from Operations | 18.06 | 53.9 | 10.69 | 16.9 | 20.44 | 26.2 |
Other Income | 0.34 | 10.03 | 11.89 | 2.3 | 9.9 | 2.12 |
Total Income | 18.4 | 63.93 | 22.58 | 19.2 | 30.34 | 28.32 |
Expenditure | ||||||
Cost of Goods Sold | 0 | 0 | 0 | 0 | 0 | 0 |
Employee Benefit & Admin Expenses | 5.72 | 10.43 | 2.51 | 51.59 | 27.05 | 31.64 |
Other Expenses | 9.85 | 41.74 | 11.23 | 27.37 | 39.69 | 53.92 |
Total (B) | 15.57 | 52.17 | 13.74 | 78.96 | 66.74 | 85.56 |
Profit Before Interest, Depreciation and Tax | 2.83 | 11.76 | 8.84 | -59.76 | -36.4 | -57.24 |
Depreciation | 2.34 | 4.02 | 3.92 | 5.45 | 6.64 | 8.48 |
Profit Before Interest and Tax | 0.49 | 7.74 | 4.92 | -65.21 | -43.04 | -65.72 |
Financial Charges | 0 | 0 | 0 | 0 | 0 | 0.02 |
Profit before Taxation | 0.49 | 7.74 | 4.92 | -65.21 | -43.04 | -65.7 |
Provision for Taxation | 0 | 0 | 0 | 0 | 0 | 0 |
Provision for Deferred Tax | 0.7 | 0.51 | 0.61 | 0.78 | 0.92 | 1.32 |
Total | 0.7 | 0.51 | 0.61 | 0.78 | 0.92 | 1.32 |
Profit After Tax | 0.21 | 8.25 | 4.31 | -65.99 | -43.95 | -67.03 |
Net Worth | 190 | 254 | 431 | 118 | 116 | 158 |
EPS (Rs.) | 0 | 0.2 | 0.12 | -3.59 | -2.4 | -3.66 |
Prospects of the Issue:
Equity Shares Offered: Fresh Issue of Equity Shares by our Company | Issue of 35,70,000 Equity Shares of Rs. 10 each at a price of Rs. 14 per Equity Share aggregating Rs.499.80 Lacs. |
Of Which | |
Issue Reserved for the Market Makers | 1,90,000 Equity Shares of Rs. 10/- each at a price of Rs. 14 per Equity Share aggregating Rs. 26.60 Lacs. |
Net Issue to the Public | 33,80,000 Equity Shares of Rs. 10 each at a price of Rs. 14 per Equity Share aggregating Rs. 473.20 Lacs. |
Equity Shares outstanding prior to the Issue | 60,00,000 Equity Shares of face value of Rs. 10 each. |
Equity Shares outstanding after the Issue | 95,70,000 Equity Shares of face value of Rs. 10 each. |
Schedule for Issue Programme:
Issue opens on: | 24.Mar.2015 |
Issue closes on: | 31.Mar.2015 |
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