If you were to learn only one candle by name, this would have to be the one. A "common" doji, as I call it, is shaped like a cross. A doji has no real body. What it says is that there is a stalemate between supply and demand. It is a time when the optimist and pessimist, amateur and professional are all in agreement. This market equilibrium argues against a strong uptrend or downtrend continuing, so a doji often marks a reversal day.
A doji in an overbought or oversold market is therefore often very significant. The opening of the next day should be watched carefully to see if the market carries through on the reversal. Note, a candle with a very small real body often can
be interpreted as a doji.
Let's See Doji In a Chart
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2.LONG LEGGED DOJI
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A "long-legged" doji is a far more dramatic candle. It says that prices moved far higher on the day, but then profit taking kicked in. Typically, a very large upper shadow is left. A close below the midpoint of the candle shows a lot of weakness. Here's an example of a long-legged doji:
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Let's See Long Legged Doji In a Chart
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3.GRAVESTONE DOJI
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A "gravestone doji," as the name implies, is probably the most ominous candle of all. On that day, prices rallied, but could not stand the "altitude" they achieved. By the end of the day they came back and closed at the same level. Here's an example of a gravestone doji
Let's See Gravestone Doji In a Chart
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4.DRAGONFLY DOJI
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Finally, a "dragonfly" doji depicts a day on which prices opened at a high, sold off, and then returned to the opening price. In my experience, dragonflies are fairly infrequent. When they do occur, however, they often resolve bullishly (provided the stock is not already overbought as shown in a chart
OPTION STRATEGIES Options allow the investor to sculpt the returns in their portfolio. When you buy a stock and the price rises $1, you make $1. You lose $1 if the price declines $1. Your profits are linear and directly related to only the change in the price of the stock. Interest and dividends will make a slight change to the outcome though these factors are also linear. Options blow apart this linearity. Options are called convex instruments because the returns are not linear but curved. We saw that in the previous chapters. You can literally create millions of possible returns through the use of options. You can mix and match options to create just about any return possible. Selecting a strategy is a multi step process. You should go through a systematic process before initiating a trade. Each step should lead to further refinement of the strategy. It can be very dangerous to your bank account to disregard some or all of the major factors that affect options prices.
Parametric Techniques on Other Distributions USING THE PARAMETERS TO FIND OPTIMAL F Now that we have found the best-fitting parameter values, we can find the optimal f on this distribution. We can take the same procedure we used to find the optimal f on the Normal Distribution . The only difference now is that the associated probabili ties for each standard value (X value) are calculated per the procedure . With the Normal Distribution, we find our associated probabilities column by using equation. Here, to find our associated probabilities, we must follow the procedure detailed previ ously: 1. For a given standard value, X, we figure its corresponding N'(X) . 2. For each standard value, we also have the interim step of keeping a running sum of the N'(X) 's corresponding to each value of X. 3. Now, to find N(X), the resultant probability for a given X, add together the running sum corresponding to the X value with the running sum corresponding
OPEN HIGH LOW STRATEGY IN DAY TRADING This is a very popular Intraday Open High Low Strategy with pretty good Accuracy. In this strategy, Buy signal is generated when a Stock or Index has same value for Open and Low, while Sell signal is generated when it has same value for Open and High. The open high low same strategy is quite popular among Indian stock traders. In fact, I am watching this strategy for 6-7 years now and this is really easy to follow strategy for even novice traders. This strategy works well in all liquid scrips but I suggest you follow only Nifty 50 stocks with this strategy. To be successful in Intraday trading having a tried and tested strategy is very important. The open high low strategy is one of the famous strategies which has high accuracy, many people use this strategy on a day to day basis. Selecting stocks plays a major role in intraday trading, there are various strategies to select stocks for day trading. w
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