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Wednesday, July 28, 2010

A123 : High Wave was formed. This implies a loss of sense of direction and that there is a great amount of indecision in the market.


Definition:

High Wave is a type of candlestick characterized with either a very long upper or a lower shadow. It has only a short real body. A group of these patterns may signal a market turn.

Recognition Criteria
:

1. The real body of the candlestick is small. Its color is not important.
2. Either the upper or the lower shadow, or both shadows are long.

Explanation:

The High Wave just like long legged doji shows that there is a great amount of indecision in the market. This pattern is formed when prices trade well above and/or below the day's opening price, but then the price closes almost at the same level as the opening price. It means that the end result is not different from the initial open despite the whole excitement and volatility during the day. The pattern implies a loss of sense of direction and that there is a great amount of indecision in the market. A group of high wave candlesticks signal a possible reversal in the market.

Important Factors:

High Wave is especially important at tops.

High Wave is also a single candlestick pattern. Hence a confirmation is definitely required in the form of an opposite move to the prior trade on the next trading day in order to judge that a reversal may be starting.

I m learning about the candle-sticks. So, I m following closely the few stocks I bought and try to learn to use the TA. Correct me if I m wrong or incorrect, ok? Thanks.

As I only bought 200 units of it, I have NO intention to sell or buy again. The transaction fee is very expensive. So, since it is seen as a 'reversal' from the current level, I will be glad to BUY when it retraces lower with a BUY signal again. Yes, average down or top up.

12.50 am : DOW at 10550. At what level will it DIVES, please? A123 at USD10.80, touched a low of 10.40.

7.00 am : DOW is flat. A123 at USD11 now. Sell at USD12 or any reversal signal seen?

JASO : Closed 6% lower, finally correcting after shooting from 4.50 to 6.50 in less than a month! It closed at 6.03. Will wait ...

BJCorp and JCY in focus today as they are oversold. BJCorp is for quick punt but JCY can hold a while as tech-stocks are recovering,plus it has not shown any green histogram yet. So, buying 'early' before it rebounds?

3A and Notion worth looking as they might rebound.

Of the four above, I will choose 3A.

JCY : Moving lower ... grabbed some at 1.36, market value. I still prefer those diving rather than momentum play, ya! So, I m going to clear my KKB at breakeven(average at current RM2.00) and sit on JCY.

TopGlove : At 6.50, touched 6.49 .... still waiting to buy HUGELY. Looking into TopGlove-cc for a punt too. IF I buy TopGlove, at least many will say ... yes, that is a good stock. Good choice. But IF I buy KKB, what is that? Sarawak-stock in play again?

Efficient : Quietly moving up, at 0.20 now. Nice.

10.30 am : Efficient done at 0.195 for 10k units only. Collecting it again. I have bought this one at 0.18-0.20 and a nice profits sold at 0.22-0.24. Can it does it trick again? Will collect at 0.190, 0.185 and 0.180.

11.00 am : Grabbed another 5k units at 0.200.

11.15 am : KKB ... yet another bad-trades. CUT CUT CUT. Potong, go in JCY and Efficient.

ZiJin : Cleared at 4.90. Moving more into A123 for my foreign stock at the moment.

12.20 am : KKB cut off at 1.96-1.97 as it shown a false breakout(BB) yesterday and formed a reversal candle-stick. Sigh. One bad thing about TA is that it needs confirmation or else it MIGHT be a false alarm. I have been caught in bad trades recently due to inconsistent TA that I m learning. i MIGHT understand it better one day.

Bad trades : Hai-O - no bullish divergence seen but I thought it was. Support - 4R1G is buy, so I thought. But can gain a little but failed to take profits when candle-stick shown bearish reversal. Sunway - cut yesterday - thought it is a bullish breakout last Friday, too bad ... the gravestone doji shown, and I hv to run again. KKB - cut today - failed. Hmmm ...

So, I m buying JCY at 1.36, its low at 1.35. NO SIGNAL of buying in TA - I m back with my common-sense trading. Buy when it is going lower, wait and position for rebound. Hmm ... it might take me 1 week or 1 month but at least I m comfortable with it. I prefer oversold stock, honestly.

2.15 pm : JCY wont be done at 1.35? The queue is so long but I m queueing at 1.35, anyway. Huge queue to SELL at 1.37. So, bull or bear to win?

2.55 pm : Added 3k units of Efficient at 0.205. Wont chase further but will top-up if it goes below 0.200.

3.15 pm : BJCorp moving today!! Signals confirmed. BUY BUY ... punt punt. TopGlove in GREEN now but JCY in red. hmmm

3.25 pm : I noticed that KurAsia and AirAsia moving ... anything to do with ASIA?

3.35 pm : PUNT into BJCorp - grabbed at 1.05-1.06. Moving up again, grab more later.

6.15 pm : KLCI up 3 points. BJCorp done at 1.05-1.08. Wait tmr for clearing? I m not comfortable with BJCorp as a stock but TA saying it is a BUY. 4R1G and touched strong support at 1.00 yesterday.

JCY : At its low 1.36, could it go lower and I might get 'stucked'? Queues at 1.35, its low, done today.

Efficient : i m surprised that I dived down and my queues at 0.195 were done! Luckily it moved back to close at 0.205. Holding 50k of units of it now.

KKB : Luckily I cleared it early, it closed lower at 1.94, touched 1.92. Is that the power of TA, if read well? I m not good in it. too bad.

ZiJin closed higher, at 5.14. Sold too early again. Hmm ...


張清芳 Stella Chang 不想你也難






The above song is dedicated to the stocks which I have sold for good profits. It is not easy to forget them. But, we always try to forget those bad-losses and blame it on bad-stocks. Actually it is bad-timing that I m experiencing that making me losing. For example, BP bought at USD37, cut at USD30 and it went up all the way to USD39. For example A123 bought at USD9 anc cut-it-short at 8.73 only to see it is at 11.00 now. I bought back A123 at 10.50. Ha-choo ...

Nvertheless, there are simple some trades of some stocks we could never forget - good or bad.

TEH

1 comment:

YJ said...

Hi Teh,

I noticed that your style of trading is quite the opposite of mine. I will normally go with the trend, trading stocks that are heading upwards. That way, I can minimize my risk by cutting loss when it hits below its previous low (or immediate support).

However, I sometimes also do track stocks that are on a downtrend ("waterfalls" like you describe them). But before I go in, I would normally wait for a clear signal of reversal before I enter, such as breaking through its immediate resistance.

Just want to share my observation for today (DISCLAIMER: this is not an invitation to buy). TMC Life today just broke through its resistance level of RM0.36 with high volume to close at RM0.385. In the next few trading days, it might head towards its next resistance level of RM0.40 and possibly the strong resistance level of RM0.44. Immediate support is now at RM0.36 and stronger support at RM0.34. Other observations include MACD still very much positive and Stochastic slightly overbought.