Charts Knowledge Technical Analysis

Chart constructions

In last post in this section,  i introduced you to different types of charts used for analysis and now we will go through some factors that should be considered while constructing charts. Arithmetic versus Logarithmic Scale Charts can be plotted using either arithmetic or Logarithmic scale. Difference would be spotted on Y-axis where there will …

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Charts Knowledge Technical Analysis

Charts

Charts represents the traded price of underlying asset during the time frame under study. Charts can be of many different types but mostly commonly used charts are Bar charts and candlestick charts because it shows complete price action on the assets unlike line graph were only closing prices are represented. Charts also accompanied by Volumes …

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Equity Research and Valuation Fundamental Research Knowledge

Equity Research

Equity research can be simply termed as research of Equities. Equity means common shares or stock of Businesses. Businesses can be Proprietorship Partnerships or Companies For Equity research or valuation we should be concerned about the companies part only Research implies thorough understanding of the company under study. We study their strength, weakness and finances …

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Dow Theory Knowledge Technical Analysis

Concluding Dow Theory

As we discussed Dow ideas or Tenets yesterday which are pillars, but one more crucial rule of Dow was to consider or give most importance to closing price, irrespective of time frame of chart. He believed averages most close above or below previous low or high to confirm the trend.  So always consider closing price to trigger …

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Dow Theory Knowledge Technical Analysis

Tenents of Dow Theory

Now lets list down some ideas of Charles Dow,  which are considered to be roots of technical research.  Across other books and website number of ideas listed may differ but overall, they are included in the broader categories as listed below: Average Discounts Everything This idea states that markets reflect every possible knowable factor that affects …

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Dow Theory Knowledge Technical Analysis

Father of Technical Analysis

After we got some basics clear on ‘What is Technical Analysis’ and cleared some myths on the same, now lets get familiar with the roots of technical. In 1882, Charles Dow and Edward Jones founded Dow Jones and Company. It is believed by most technical analysts that most theories where founded by DOW and he published his …

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