Flashcards
Technical
Cards in this deck (11)
- 1Whenever the stock moves either upwards or downwards sharply, it usually tends to retrace back before its next move. How much?By Fibonacci ratio - 61.8%, 38.2%, 23.6%
- 2What is ideal Reward to Risk Ratio?Risk = Entry - Stop Loss
Reward = Target - Entry
Reward to Risk Ratio should be >1.5 for average investor, >2 for risk averse - 3What is this Candlestick pattern? Open = Low and High = closeBullish Marubozu
indicates that there is so much buying interest in the stock that the market participants were willing to buy the stock at every price point during the day, so much so that the stock closed near its high point for the day. The expectation is that this bullish sentiment will continue over the next few trading sessions. - 4What does following candle stick pattern indicate? Small body, upper and lower shadow length equalSpinning top indicates indecision in market.
Spinning top at the top end of the rally indicates that either the bulls are taking a pause before they can resume the uptrend further or the bears are preparing to break the trend.
- 5What does following candle stick pattern indicate? Opening price is same as closing price with virtually non-existent body, upper and lower shadow length equalDoji indicate indecision in market like Spinning top.
- 6What does following candle stick pattern indicate? Long lower shadow with small upper body ( length of the lower shadow should be at least twice the length of the real body)Paper umbrella indicate trend reversal.
If appears at the bottom end of a downward rally, it is called the ‘Hammer’.
If appears at the top end of an uptrend rally, it is called the ‘Hanging man’.
- 7What does 2 candle stick pattern indicate?Bullish engulfing pattern.
Prior trend down trend. The 2nd candle engulfs 1st. Trend reverses...bullishness is expected to continue over the next few successive trading sessions.
if 3rd candle is Doji then it is strong reversal signal.
- 8What does 2 candle stick pattern indicate?Bullish Harami pattern.
Prior trend bearish..1st day Red candle, 2nd day starts higher than 1st day close and forms blue candle. Trend reverses.
- 9What does gap up opening means?Indicates bullish sentiment. Stock opens at higher price than last days close price.
- 10What does 3 candle pattern indicate?Morning start pattern indicate down trend reversal.
Day 1 bearish Red candle..Day 2 gap down opening and Doji/Spinning top pattern..Day 3 gap up opening and closes above Day 1 opening price.
- 11What does 3 candle pattern indicate?The evening star pattern indicate uptrend reversal.
Day 1 blue candle..Day 2 gap up opening and forms Doji/Spinning top pattern..Day 3 gap down opening and closes below Day 1 opening price.
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- Finance1 Professional Development Flashcards on Technical, created by Ramesh Bhuyan on 21/01/2018.
- Created by
- Ramesh Bhuyan · Jan 2018
- Updated
- Dec 27, 2018
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