FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» CSE - The World's best performer!
by WealthKing Today at 2:53 pm

» GLAS will be winner with Super Gain.
by sandamal Today at 2:37 pm

» SHOESHINE BOYS!
by Bakkabwoi Today at 2:36 pm

» HATTON NATIONAL BANK PLC
by ADVENTUS Today at 2:14 pm

» TRUE VALUE OF LANKA ALUMINUM INDUSTRY (LALU)
by stockie Today at 1:33 pm

» CSE - Market status
by stockie Today at 1:06 pm

» DIPD/HAYC/HAYL
by arun.cse Today at 11:31 am

» Guardian Investment Trust (GUAR) could Sky Rocket
by RJ1010 Today at 9:41 am

» CB to continue the current accommodative monetary policy stance
by samaritan Today at 9:18 am

» PANASIAN POWER PLC (PAP.N0000)
by vijay singh Today at 2:26 am

» Maharaja's Advice
by madukp Today at 1:17 am

» Millennial Capital Youtube Channel
by MillennialC Yesterday at 11:54 pm

» Investor sentiment - will there ever be a recovery?
by xhunter Yesterday at 10:50 pm

» Everybody talks about huge selling. That means there are buyers in the market to buy these shares. Stock market for beginners
by Asoka Samarakone Yesterday at 9:17 pm

» Personal Loans in Sri Lanka from Hatton National Bank
by onenine87 Yesterday at 8:34 pm

» Daily Foreign Transactions
by Pradeep90 Yesterday at 6:51 pm

» Has the CSE reached the peak actually in January?
by FireandWater Yesterday at 6:10 pm

» WindForce Limited IPO
by ishanel2007 Yesterday at 5:44 pm

» Capital Savings Account with high interest rates from HNB Sri Lanka
by menasros Yesterday at 5:05 pm

» Regular Savings Account with benefits from HNB Sri Lanka
by menasros Yesterday at 4:36 pm

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » CHRONICLE™ ANALYTICS » DIMO with double bottom ?

DIMO with double bottom ?

Go down  Message [Page 1 of 1]

1DIMO with double bottom ? Empty DIMO with double bottom ? Sun May 29, 2011 7:24 am

dr kiru005

dr kiru005
Senior Equity Analytic
Senior Equity Analytic
The double bottom is a major reversal STOCK pattern that forms after an extended downtrend.

The pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in-between.

Double-bottom patterns usually marks an intermediate or long-term change in trend. Until key resistance is broken, a reversal cannot be confirmed.

The following are key points in confirming the double-bottom pattern:

Prior Trend: With any reversal pattern, there must be an existing trend to reverse. In the case of the double-bottom, a significant downtrend of several months should be in place.

First Trough: The first trough should mark the lowest point of the current trend. The first trough is fairly normal in appearance and the downtrend remains firmly in place.

Peak: After the first trough, an advance takes place that typically ranges from 10 to 20%. Volume on the advance from the first trough is usually not important, but an increase could signal early share accumulation.

Second Trough: The decline off the reaction high usually occurs with low volume and meets support from the previous low. Even after establishing support, only the possibility of a double bottom exists, it still needs to be confirmed.

The time period between troughs can vary from a few weeks to many months, with the norm being 1-3 months. While exact troughs are preferable, there is some room to maneuver and usually a trough within 3% of the previous is considered valid.

Advance from Trough: Volume is more important for the double bottom than the double top. There should clear evidence that volume and buying pressure are accelerating during the advance off of the second trough.

Resistance Break: Even after trading up to resistance, the double top and trend reversal are still not complete. Breaking resistance from the highest point between the troughs completes the double bottom. This should occur with a large increase in volume.
The OBV Indicator can be used to confirm the break.

Resistance Turned Support: Broken resistance becomes potential support and there is sometimes a test of this newfound support level with the first correction down. Such a test can offer a second chance to close a short position or initiate a long sale.

Price Target: The distance from the resistance breakout to trough lows can be added on top of the resistance break to estimate a target. This would mean that the bigger the formation is, the larger the potential advance.

what is On Balance Volume - OBV

The on balance volume (OBV) indicator was developed by a fellow named Joseph Granville in 1963.

What makes OBV so useful is that it presents a more visual way to view the share price volume flow and compare it to the stock's price action.

Volume should increase in the direction of the price trend, and this indicator makes it easier to make sure that is happening.

If the direction of the OBV line is up, the line is bullish meaning that there is more volume on up days than on down days.

A falling OBV line signals that volume is heavier on down days, and is considered to be bearish.

[i]what do you guys have to say on dimo ? DB going to go for breaking point or not?[/i]

this is not a buying recommendation and i hold 800dimo @1617/=
[You must be registered and logged in to see this image.]

i'm new give me some rep guys. bounce

2DIMO with double bottom ? Empty Re: DIMO with double bottom ? Sun May 29, 2011 11:32 am

dr kiru005

dr kiru005
Senior Equity Analytic
Senior Equity Analytic
can any experts comment pls Shocked

3DIMO with double bottom ? Empty Re: DIMO with double bottom ? Sun May 29, 2011 12:12 pm

gann

gann
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
@dr kiru005 post TA stuff in the Charts and Graphs section of the forum.
+ from me. The article touches important points in TA. Understanding support and Resistance is a key element in TA.

4DIMO with double bottom ? Empty Re: DIMO with double bottom ? Sun May 29, 2011 1:34 pm

xmart

xmart
Senior Manager - Equity Analytics
Senior Manager - Equity Analytics
nice effort bro. + from me.
wrong time to enter. after script dividend and dividend this may down to 1450 level. where were you on 12th May. it was a ideal time to identify the trend and enter.

5DIMO with double bottom ? Empty Re: DIMO with double bottom ? Mon May 30, 2011 11:35 am

dr kiru005

dr kiru005
Senior Equity Analytic
Senior Equity Analytic
@xmart... i think because the share is still under valued the dividend of 20rs and a script dividend worth 30 rs for each share, won't effect the share price after the XD date i think it will drag in all the ppl who waited the share to go down to buy... and the double bottom is developing just in the last two months so even there is time to buy it i actually bought it early i think. real experts are still waiting for it to break the 2nd resistance..

thanks guys i'm starting to love this forum..

6DIMO with double bottom ? Empty Re: DIMO with double bottom ? Mon May 30, 2011 11:49 am

Monster

Monster
Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics
@dr kiru005. excellent job. keep up your good work. +Rep from me

7DIMO with double bottom ? Empty Re: DIMO with double bottom ? Mon May 30, 2011 6:12 pm

smallville

smallville
Associate Director - Equity Analytics
Associate Director - Equity Analytics
Nice effort .. Why the chart only gives us a time period where DIMO almost shot up from 900 level? What we really need is a chart from January 2011 to now to identify the patterns..

[You must be registered and logged in to see this image.]

Looking at the pattern from April to May in my DFN charts I see it like a cup n handle but no nice cup or handle formation Wink Again this is doubtful as the time period is way too small for a formation Wink So do not get in to buy/sell decisions now..
However i must train my eyes more..but I wonder why it seems different from gann's charts scratch

8DIMO with double bottom ? Empty Re: DIMO with double bottom ? Mon May 30, 2011 8:50 pm

dr kiru005

dr kiru005
Senior Equity Analytic
Senior Equity Analytic
click on the attachment under my first post to see the dimo last 3 months pattern.. and see the volumes with the prices to me it looks more like double bottom?

Sponsored content


Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum