GST and its impact on stocks

The most significant tax reform of India, i.e., the GST or Goods and Services Tax, will eventually become a reality from 1st July 2017. The Lok Sabha passed on 4 significant legislations to introduce a nationwide Goods and Services Tax (GST) bringing India nearer to a uniform tax dominion and while putting an ending uncertainty which is positive for markets.

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Commodity Channel Index (CCI)

The commodity channel index (CCI) is an oscillator originally introduced by Donald Lambert in 1980. Since its introduction, the indicator has grown in reputation which is currently a very common tool for traders in identifying cyclical trends not just in commodities, but also equities and currencies.

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Accumulation Distribution Line Indicator

The accumulation/distribution line or accumulation/distribution index (ADL), formulated by Marc Chaikin is a technical analysis indicator meant to relate price and volume in the stock market and also works like a leading indicator of price movements.

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Understanding On-balance volume (OBV)

On-balance volume (OBV) is a technical analysis indicator which is designed to correlate price and volume in the stock market. OBV measures buying and selling pressure as a cumulative indicator that adds volume on up days and subtracts volume on down days. When the security closes higher than the previous close, all of the day’s volume is considered up-volume. When the security closes lower than the previous close, all of the day’s volume is considered down-volume.

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Heikin Ashi Candlestick Charts

Heikin-Ashi means “average bar” in Japanese. Heikin-Ashi Candlesticks use the open-close data from the previous period and the open-high-low-close data from the current period to create an average candlestick. As a result of the averaging, Heikin-Ashi candlesticks won’t show the exact open, high, low and close for that period like a standard candlestick would. Continue reading

Candlestick Patterns: Hanging Man & Hammer

A hammer is a kind of bullish reversal candlestick pattern, consists of only one candle, and appears after a downtrend. The candle is similar to a hammer, simply because it has a long lower wick and a short body at the top of the candlestick with almost no upper wick. Continue reading