Podcast
Questions and Answers
What is the meaning of the abbreviation 'HH' in the context of the given text?
What is the meaning of the abbreviation 'HH' in the context of the given text?
- High/High
- Horizontal Histogram
- Head and Shoulders (correct)
- Hexaware
What is the significance of the 'Confirmation Candle' mentioned in the text?
What is the significance of the 'Confirmation Candle' mentioned in the text?
- It confirms the breakout of a resistance level
- It confirms the volume levels during the trading session
- It confirms the reversal of the trend (correct)
- It confirms the breakdown of a support level
What is the relationship between the 'Distance from Head Top to Neck Line' (D) and the target levels T1, T2, and T3?
What is the relationship between the 'Distance from Head Top to Neck Line' (D) and the target levels T1, T2, and T3?
- T1 = D/2, T2 = D, T3 = D x 2 (correct)
- T1 = D, T2 = D/2, T3 = D x 2
- T1 = D, T2 = D x 2, T3 = D/2
- T1 = D x 2, T2 = D, T3 = D/2
What was the trend of the Hexaware stock prior to June 2007 according to the text?
What was the trend of the Hexaware stock prior to June 2007 according to the text?
What was the significance of the bottom near 20 for the Hexaware stock mentioned in the text?
What was the significance of the bottom near 20 for the Hexaware stock mentioned in the text?
What is the relationship between the 'Low Volume' and 'High Volume' mentioned in the context of the 'Confirmation Candle'?
What is the relationship between the 'Low Volume' and 'High Volume' mentioned in the context of the 'Confirmation Candle'?
What type of chart pattern is described in the text as a 'reversal pattern'?
What type of chart pattern is described in the text as a 'reversal pattern'?
What is the significance of the 'Neckline' mentioned in the context of the 'Head and Shoulders' pattern?
What is the significance of the 'Neckline' mentioned in the context of the 'Head and Shoulders' pattern?
What is the significance of the 'Breakdown' and 'Breakout' mentioned in the text?
What is the significance of the 'Breakdown' and 'Breakout' mentioned in the text?
What is the primary focus of the information provided in the text?
What is the primary focus of the information provided in the text?
Flashcards
HH Meaning
HH Meaning
Head and Shoulders
Confirmation Candle
Confirmation Candle
Confirms trend reversal
Distance from Head Top to Neck Line (D)
Distance from Head Top to Neck Line (D)
Used for calculating target levels T1,T2,T3
Hexaware Stock Trend (Pre-2007)
Hexaware Stock Trend (Pre-2007)
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Hexaware Stock Bottom (20)
Hexaware Stock Bottom (20)
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Low Volume (Confirmation Candle)
Low Volume (Confirmation Candle)
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High Volume (Confirmation Candle)
High Volume (Confirmation Candle)
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Head and Shoulders Pattern
Head and Shoulders Pattern
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Neckline (H&S)
Neckline (H&S)
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Breakdown/Breakout
Breakdown/Breakout
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Study Notes
Crossover Signals
- A Positive Crossover indicates a Bullish Mood in the market
- A Positive Crossover above the Zero Line indicates a Strong Bullish Mood
- A Negative Crossover indicates a Bearish Mood in the market
- A Negative Crossover below the Zero Line indicates a Strong Bearish Mood
Chart Patterns
- Chart patterns help predict future prices based on past prices
- Chart patterns also help in navigating targets and stop-loss
- Types of chart patterns include Reversal, Continuation, and Multibagger
Reversal Chart Patterns
- Reversal chart patterns indicate a trend reversal point
- Types of Reversal Chart Patterns: Inverted Head and Shoulder, Double Bottom, Head and Shoulder, Double Top
- Head and Shoulder is a reversal pattern that indicates a change in an uptrend
Trading with Head and Shoulder
- How to trade: Neckline Breakdown
- How to trade: Resistance Breakout
- Confirmation candle is required after breakout or breakdown
- T1 = D/2, T2 = D, T3 = D x 2, where D is the distance from support to resistance
Continuation Chart Patterns
- Continuation chart patterns indicate that the current trend is likely to continue
- Types of Continuation Chart Patterns: Bullish Flag and Pole, Bearish Flag and Pole, Cup and Handle
Trading with Continuation Chart Patterns
- How to trade: Flag Breakout
- How to trade: Flag Breakdown
- D is the height of the pole
- Confirmation candle is required after breakout or breakdown
- T1 = D/2, T2 = D, T3 = D x 2
- Low Volume = High of Entry Candle
- High Volume = Median of Entry Candle
Cup and Handle
- Cup and Handle is a type of Continuation Chart Pattern
- For a proper Cup and Handle formation:
- Volume in the bottom and handle area should be low
- Breakout from pivot should be with more than average volume
- How to trade: Resistance Breakout
- D is the depth of the cup
- Confirmation candle is required after breakout or breakdown
- T1 = D/2, T2 = D, T3 = D x 2
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Description
Test your knowledge on identifying stock market trends based on crossovers and chart patterns. Learn how to recognize bullish and bearish moods in the market through these indicators.
