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What should be an ideal period for W pattern analysis?

Discussion in 'Chit Chat' started by verenmitter2001, Oct 4, 2012.

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  1. verenmitter2001

    verenmitter2001 Member

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    Hi ALL,
    I am trying to learn lot of good things from this forum and Shabbir's eBook.

    I was wondering what is the right period for analysis for formation of W pattern and M pattern.
    To my knowledge its 6 months and one year but you still find patterns in one month and three months as well. Kindly comment.

    Secondly Popularly I have notice all charts from forum user has 10 days and 21 days Moving averages. Should 100 or 200 days be added? Probably it is dependant on what time frame or (short term/long term) outlook we are looking at the stock??? Kindly comment.

    Thanks
    Veren
     
    verenmitter2001, Oct 4, 2012
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  2. shabbir

    shabbir Administrator Staff Member

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    W pattern is more or less done on daily charts and it does not matter what time frame you are looking at but yes daily patterns does mean you should be seeing things in perspective to few months.

    Regarding moving averages, use them only for identifying the trend and not for trading and so it does not mack much sense to be doing 100 and 200 days when it comes to EMA but yes SMA for longer time makes some sense.
     
    shabbir, Oct 4, 2012
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