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What is Opening Marubozu?

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 One White Soldier: Bullish Reversal Pattern?

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 Black Crow: Bearish Reversal Pattern?

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.

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Intraday Trading Training - Share Market Training Chennai


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Intraday Trading Training - Share Market Training Chennai

What is an Intra day trading?

Intra-Day Traders. The name “intra-day trader” refers to a stock trader who opens and closes a position in a security in the same trading day. This can be buying and selling to capitalize on a potential rise in a security's value or shorting and covering the short to capitalize on a potential drop in value.

Intraday Trading Training - Share Market Training Chennai

Intraday Trading Training - Share Market Training Chennai


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Intraday Trading Training - Share Market Training Chennai

What is an Intra day trading?

Intra-Day Traders. The name “intra-day trader” refers to a stock trader who opens and closes a position in a security in the same trading day. This can be buying and selling to capitalize on a potential rise in a security's value or shorting and covering the short to capitalize on a potential drop in value.

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Online Share Market Training Course - Share Market Training in Chennai
Online Share Market Training Course - Share Market Training in Chennai

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What is Long-legged Doji: Bullish Reversal, Bearish Reversal?

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 Ladder Top: Bearish Reversal Pattern?

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 Bottom: Bullish Reversal Pattern?

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.

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Market Trading Education - Smart Trading Ideas - Share Market Training in Chennai
Market Trading Education - Smart Trading Ideas - Share Market Training in Chennai

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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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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Learn online Stock ! Share Market Trading Training Courses
Learn online Stock ! Share Market Trading Training Courses

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.

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.

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.

போனஸ் பங்கு எப்போது வழங்கப்படும்

Question :

ஒரு நிறுவனப்பங்குக்கு போனஸ் பங்கு அறிவிக்கப்படுகிறது என்றால் .அந்த போனஸ் பங்கு எப்போது வழங்கப்படும் என்ற நடைமுறைகளைவிளக்கவும்

Answer :


போனஸ் பங்கு எப்போது வழங்கப்படும் என்ற நடைமுறைகளைவிளக்கவும்


க.கார்த்திக் ராஜா, ரிசர்ச் அனலிஸ்ட்,ருபீடெஸ்க் கன்சல்டன்சி.

போனஸ் பங்குகள் என்பது, நன்றாக நிர்வகிக்கப்பட்டு, லாபத்தில் இயங்கி சிறப்பாகச் செயல்படும் நிறுவனங்கள் தங்கள்லாபத்தை முதலீட்டாளர்களுடன் பகிர்ந்து கொள்ளும் வகையில்தற்போதைய பங்குதாரர்களுக்கு இலவசமாக வழங்கப்படும் பங்குகளாகும். இவை 1:1, 1:2 போன்ற விகிதத்தில் வழங்கப்படுகிறது. உதாரணமாக ஒரு நிறுவனம் 1:1 என்ற விகிதத்தில் போனஸ் பங்குகளை வழங்குவதாக முடிவு செய்தால், அந்த நிறுவனத்தின் 1 பங்கை வைத்திருக்கும் பங்குதாரருக்கு இலவசமாக மேலும் 1 பங்கு கிடைக்கும். இந்த நடைமுறைக்கு ப்பின் 1 பங்கு வைத்திருக்கும் பங்குதாரர் 2 பங்குகளுக்கு சொந்தக்காரராகி விடுகிறார்.

மேலும் ஒரு நிறுவனம் போனஸ் பங்குகளை வழங்கும் போது அந்நிறுவனத்தின் பங்குவிலை குறைகிறது. உதாரணமாக ஒரு  நிறுவனம் 1:1 என்கிற விகிதத்தில் போனஸ் பங்குகள் வழங்குவதாக வைத்துக் கொள்வோம். போனஸ் பங்குகள் வழங்குவதற்கு முன்னர் அந்த நிறுவனத்தின் பங்குவிலை ரூ.2000 ஆக இருந்தால், போனஸ் பங்குகள் வழங்கப்பட்ட பிறகு அதன் விலை தானாகவே ரூ.1000 ஆகிவிடும்.

இதுபோன்ற சூழலில் நாம் கவனிக்க வேண்டிய முக்கியமான விஷயம்ரெக்கார்ட் தேதி என்பதைத்தான்! அதாவது நிறுவனங்கள் இதுபோன்றபோனஸ் பங்குகளையோ (Bonus Shares), டிவிடெண்டையோ (Dividend),பங்கு பிரிப்பையோ (Stock Split) அறிவிக்கும்போது ரெக்கார்ட் தேதி ஒன்றைஅறிவிப்பார்கள்.  அந்த குறிப்பிட்ட தேதியில் யாரிடம் பங்கு இருக்கிறதோஅவருக்குத்தான் அந்தச் சலுகை கிடைக்கும்.

உதாரணமாக. ஒரு நிறுவனம் ஜூன் 22ம் தேதியை ரெக்கார்ட் தேதியாகஅறிவித்திருந்தால். அன்றைய தினம் நம்முடைய டீமேட் கணக்கில் பங்குஇருக்க வேண்டும், குறைந்தபட்சம் அதற்கு இரண்டு தினங்களுக்குமுன்பாக நாம் அந்தப் பங்குகளை வாங்கியிருக்க வேண்டும். ஏனென்றால்,ஒரு பங்கை வாங்கினால் அது நம் டீமேட் கணக்குக்கு வர 2 நாட்கள்தேவைப்படும்.

அப்படிப் பார்த்தால் ஜூன் 20 ஆம் தேதியன்று வாங்கியவர்களுக்குத்தான்இந்தச் சலுகை கிடைக்கும். அதற்குப் பிறகு இந்தப் பங்கை வாங்கினால்அந்த பங்கு நமக்குக் கிடைக்குமே தவிர போனஸ் பங்குகள் கிடைக்காது. ரெக்கார்ட் தேதிக்கு முந்தய நாள் ஜூன் 21 Ex-Bonus தேதி என்று அழைக்கப்படும். Ex-Bonus தேதி குறிப்பிட்ட அந்த நாளில் அதன் பங்கின் விலை அந்த நிறுவனம் அறிவித்திருந்த விகிதத்தின் படி குறைந்து வர்த்தகமாகும்.
-- 

போனஸ் பங்கு எப்போது வழங்கப்படும்

Question :

ஒரு நிறுவனப்பங்குக்கு போனஸ் பங்கு அறிவிக்கப்படுகிறது என்றால் .அந்த போனஸ் பங்கு எப்போது வழங்கப்படும் என்ற நடைமுறைகளைவிளக்கவும்

Answer :


போனஸ் பங்கு எப்போது வழங்கப்படும் என்ற நடைமுறைகளைவிளக்கவும்


க.கார்த்திக் ராஜா, ரிசர்ச் அனலிஸ்ட்,ருபீடெஸ்க் கன்சல்டன்சி.

போனஸ் பங்குகள் என்பது, நன்றாக நிர்வகிக்கப்பட்டு, லாபத்தில் இயங்கி சிறப்பாகச் செயல்படும் நிறுவனங்கள் தங்கள்லாபத்தை முதலீட்டாளர்களுடன் பகிர்ந்து கொள்ளும் வகையில்தற்போதைய பங்குதாரர்களுக்கு இலவசமாக வழங்கப்படும் பங்குகளாகும். இவை 1:1, 1:2 போன்ற விகிதத்தில் வழங்கப்படுகிறது. உதாரணமாக ஒரு நிறுவனம் 1:1 என்ற விகிதத்தில் போனஸ் பங்குகளை வழங்குவதாக முடிவு செய்தால், அந்த நிறுவனத்தின் 1 பங்கை வைத்திருக்கும் பங்குதாரருக்கு இலவசமாக மேலும் 1 பங்கு கிடைக்கும். இந்த நடைமுறைக்கு ப்பின் 1 பங்கு வைத்திருக்கும் பங்குதாரர் 2 பங்குகளுக்கு சொந்தக்காரராகி விடுகிறார்.

மேலும் ஒரு நிறுவனம் போனஸ் பங்குகளை வழங்கும் போது அந்நிறுவனத்தின் பங்குவிலை குறைகிறது. உதாரணமாக ஒரு  நிறுவனம் 1:1 என்கிற விகிதத்தில் போனஸ் பங்குகள் வழங்குவதாக வைத்துக் கொள்வோம். போனஸ் பங்குகள் வழங்குவதற்கு முன்னர் அந்த நிறுவனத்தின் பங்குவிலை ரூ.2000 ஆக இருந்தால், போனஸ் பங்குகள் வழங்கப்பட்ட பிறகு அதன் விலை தானாகவே ரூ.1000 ஆகிவிடும்.

இதுபோன்ற சூழலில் நாம் கவனிக்க வேண்டிய முக்கியமான விஷயம்ரெக்கார்ட் தேதி என்பதைத்தான்! அதாவது நிறுவனங்கள் இதுபோன்றபோனஸ் பங்குகளையோ (Bonus Shares), டிவிடெண்டையோ (Dividend),பங்கு பிரிப்பையோ (Stock Split) அறிவிக்கும்போது ரெக்கார்ட் தேதி ஒன்றைஅறிவிப்பார்கள்.  அந்த குறிப்பிட்ட தேதியில் யாரிடம் பங்கு இருக்கிறதோஅவருக்குத்தான் அந்தச் சலுகை கிடைக்கும்.

உதாரணமாக. ஒரு நிறுவனம் ஜூன் 22ம் தேதியை ரெக்கார்ட் தேதியாகஅறிவித்திருந்தால். அன்றைய தினம் நம்முடைய டீமேட் கணக்கில் பங்குஇருக்க வேண்டும், குறைந்தபட்சம் அதற்கு இரண்டு தினங்களுக்குமுன்பாக நாம் அந்தப் பங்குகளை வாங்கியிருக்க வேண்டும். ஏனென்றால்,ஒரு பங்கை வாங்கினால் அது நம் டீமேட் கணக்குக்கு வர 2 நாட்கள்தேவைப்படும்.

அப்படிப் பார்த்தால் ஜூன் 20 ஆம் தேதியன்று வாங்கியவர்களுக்குத்தான்இந்தச் சலுகை கிடைக்கும். அதற்குப் பிறகு இந்தப் பங்கை வாங்கினால்அந்த பங்கு நமக்குக் கிடைக்குமே தவிர போனஸ் பங்குகள் கிடைக்காது. ரெக்கார்ட் தேதிக்கு முந்தய நாள் ஜூன் 21 Ex-Bonus தேதி என்று அழைக்கப்படும். Ex-Bonus தேதி குறிப்பிட்ட அந்த நாளில் அதன் பங்கின் விலை அந்த நிறுவனம் அறிவித்திருந்த விகிதத்தின் படி குறைந்து வர்த்தகமாகும்.
-- 

K.Karthik Raja : 20.06.2016



K.Karthik Raja 


Institutes for share Market Training in Chennai

Institutes for share Market Training in Chennai
Institutes for share Market Training in Chennai

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.

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.

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.

K.Karthik Raja - Research Analsyt Chennai


K.Karthik Raja - Research Analsyt Chennai


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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.

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

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.

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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

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

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.

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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.

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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.

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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.


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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.

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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.

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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.


Beginners Guide to Commodities Futures Trading in India

Beginners Guide to Commodities Futures Trading in India


Indian markets have recently thrown open a new avenue for retail investors and traders to participate: commodity derivatives. For those who want to diversify their portfolios beyond shares, bonds and real estate, commodities is the best option.

Till some months ago, this wouldn't have made sense. For retail investors could have done very little to actually invest in commodities such as gold and silver -- or oilseeds in the futures market. This was nearly impossible in commodities except for gold and silver as there was practically no retail avenue for punting in commodities.

However, with the setting up of three multi-commodity exchanges in the country, retail investors can now trade in commodity futures without having physical stocks!

Commodities actually offer immense potential to become a separate asset class for market-savvy investors, arbitrageurs and speculators. Retail investors, who claim to understand the equity markets may find commodities an unfathomable market. But commodities are easy to understand as far as fundamentals of demand and supply are concerned. Retail investors should understand the risks and advantages of trading in commodities futures before taking a leap. Historically, pricing in commodities futures has been less volatile compared with equity and bonds, thus providing an efficient portfolio diversification option.

In fact, the size of the commodities markets in India is also quite significant. Of the country's GDP of Rs 13,20,730 crore (Rs 13,207.3 billion), commodities related (and dependent) industries constitute about 58 per cent.

Currently, the various commodities across the country clock an annual turnover of Rs 1,40,000 crore (Rs 1,400 billion). With the introduction of futures trading, the size of the commodities market grow many folds here on.

Like any other market, the one for commodity futures plays a valuable role in information pooling and risk sharing. The market mediates between buyers and sellers of commodities, and facilitates decisions related to storage and consumption of commodities. In the process, they make the underlying market more liquid.

Here's how a retail investor can get started:

Where do I need to go to trade in commodity futures?

You have three options - the National Commodity and Derivative Exchange, the Multi Commodity Exchange of India Ltd and the National Multi Commodity Exchange of India Ltd. All three have electronic trading and settlement systems and a national presence.

How do I choose my broker?

Several already-established equity brokers have sought membership with NCDEX and MCX. The likes of Refco Sify Securities, SSKI (Sharekhan) and ICICIcommtrade (ICICIdirect), ISJ Comdesk (ISJ Securities) and Sunidhi Consultancy are already offering commodity futures services. Some of them also offer trading through Internet just like the way they offer equities. You can also get a list of more members from the respective exchanges and decide upon the broker you want to choose from.

What is the minimum investment needed?

You can have an amount as low as Rs 5,000. All you need is money for margins payable upfront to exchanges through brokers. The margins range from 5-10 per cent of the value of the commodity contract. While you can start off trading at Rs 5,000 with ISJ Commtrade other brokers have different packages for clients.

For trading in bullion, that is, gold and silver, the minimum amount required is Rs 650 and Rs 950 for on the current price of approximately Rs 65,00 for gold for one trading unit (10 gm) and about Rs 9,500 for silver (one kg).

The prices and trading lots in agricultural commodities vary from exchange to exchange (in kg, quintals or tonnes), but again the minimum funds required to begin will be approximately Rs 5,000.

Do I have to give delivery or settle in cash?

You can do both. All the exchanges have both systems - cash and delivery mechanisms. The choice is yours. If you want your contract to be cash settled, you have to indicate at the time of placing the order that you don't intend to deliver the item.

If you plan to take or make delivery, you need to have the required warehouse receipts. The option to settle in cash or through delivery can be changed as many times as one wants till the last day of the expiry of the contract.

What do I need to start trading in commodity futures?

As of now you will need only one bank account. You will need a separate commodity demat account from the National Securities Depository Ltd to trade on the NCDEX just like in stocks.

What are the other requirements at broker level?

You will have to enter into a normal account agreements with the broker. These include the procedure of the Know Your Client format that exist in equity trading and terms of conditions of the exchanges and broker. Besides you will need to give you details such as PAN no., bank account no, etc.

What are the brokerage and transaction charges?

The brokerage charges range from 0.10-0.25 per cent of the contract value. Transaction charges range between Rs 6 and Rs 10 per lakh/per contract. The brokerage will be different for different commodities. It will also differ based on trading transactions and delivery transactions. In case of a contract resulting in delivery, the brokerage can be 0.25 - 1 per cent of the contract value. The brokerage cannot exceed the maximum limit specified by the exchanges.

Where do I look for information on commodities?

Daily financial newspapers carry spot prices and relevant news and articles on most commodities. Besides, there are specialised magazines on agricultural commodities and metals available for subscription. Brokers also provide research and analysis support.

But the information easiest to access is from websites. Though many websites are subscription-based, a few also offer information for free. You can surf the web and narrow down you search.

Who is the regulator?

The exchanges are regulated by the Forward Markets Commission. Unlike the equity markets, brokers don't need to register themselves with the regulator.

The FMC deals with exchange administration and will seek to inspect the books of brokers only if foul practices are suspected or if the exchanges themselves fail to take action. In a sense, therefore, the commodity exchanges are more self-regulating than stock exchanges. But this could change if retail participation in commodities grows substantially.

Who are the players in commodity derivatives?

The commodities market will have three broad categories of market participants apart from brokers and the exchange administration - hedgers, speculators and arbitrageurs. Brokers will intermediate, facilitating hedgers and speculators.

Hedgers are essentially players with an underlying risk in a commodity - they may be either producers or consumers who want to transfer the price-risk onto the market.

Producer-hedgers are those who want to mitigate the risk of prices declining by the time they actually produce their commodity for sale in the market; consumer hedgers would want to do the opposite.

For example, if you are a jewellery company with export orders at fixed prices, you might want to buy gold futures to lock into current prices. Investors and traders wanting to benefit or profit from price variations are essentially speculators. They serve as counterparties to hedgers and accept the risk offered by the hedgers in a bid to gain from favourable price changes.

In which commodities can I trade?

Though the government has essentially made almost all commodities eligible for futures trading, the nationwide exchanges have earmarked only a select few for starters. While the NMCE has most major agricultural commodities and metals under its fold, the NCDEX, has a large number of agriculture, metal and energy commodities. MCX also offers many commodities for futures trading.

Do I have to pay sales tax on all trades? Is registration mandatory?

No. If the trade is squared off no sales tax is applicable. The sales tax is applicable only in case of trade resulting into delivery. Normally it is the seller's responsibility to collect and pay sales tax.

The sales tax is applicable at the place of delivery. Those who are willing to opt for physical delivery need to have sales tax registration number.

What happens if there is any default?

Both the exchanges, NCDEX and MCX, maintain settlement guarantee funds. The exchanges have a penalty clause in case of any default by any member. There is also a separate arbitration panel of exchanges.

Are any additional margin/brokerage/charges imposed in case I want to take delivery of goods?

Yes. In case of delivery, the margin during the delivery period increases to 20-25 per cent of the contract value. The member/ broker will levy extra charges in case of trades resulting in delivery.

Is stamp duty levied in commodity contracts? What are the stamp duty rates?

As of now, there is no stamp duty applicable for commodity futures that have contract notes generated in electronic form. However, in case of delivery, the stamp duty will be applicable according to the prescribed laws of the state the investor trades in. This is applicable in similar fashion as in stock market.

How much margin is applicable in the commodities market?

As in stocks, in commodities also the margin is calculated by (value at risk) VaR system. Normally it is between 5 per cent and 10 per cent of the contract value.

The margin is different for each commodity. Just like in equities, in commodities also there is a system of initial margin and mark-to-market margin. The margin keeps changing depending on the change in price and volatility.

Are there circuit filters?

Yes the exchanges have circuit filters in place. The filters vary from commodity to commodity but the maximum individual commodity circuit filter is 6 per cent. The price of any commodity that fluctuates either way beyond its limit will immediately call for circuit breaker.

Interested in commodities futures trading?

Beginners Guide to Commodities Futures Trading in India