Using Moving Average Lines as a guide to build a simple trading profitable system

 

With three moving averages, you can trend trade the stock. 

What you need to know are below:

1) When to enter a trade long or short?

2) When to continue to add lots as price trend higher?

3) When to take partial profits when price trend too far away?

4) When to sell everything and be happy?

5) Scan another potential stock and repeat Step 1 to 4 again.

Hmm...trading is boring boring and routine and routine...

What you need to know for extremely high price and volume bar?

 

Start Small and Finish Well

 

For beginners who just starting to trade. You need to be in the trades in order to learn.

By starting small and accumulate as the price heading up the trend, monitor the cut loss level per entry. 

Hopefully over the time, the 1000 shares will become 10000, 100000 and etcs with confidence built up over the time.

Limit the risk exposure to a dollar value per day when you start out initially, over the time when you

know your win to loss ratio, you can change the game play.

Happy Profitable Trading!

How to do position sizing to limit losses?

 

How to spot and trade a Market Flush? High Probability Trade Setup

Programmed a few calculators over the years...

Oxley Holdings Daily Chart Analysis dated 020120 mid day

Looking at the chart, the stock is going into stage 2 advancing therefore inorder to
trigger a buy, need volume confirmation as well as "whatif" level to cut loss..

This stock is slow moving, therefore need patience to hold for a while....

Where will you buy at point 1,2 or 3?

Yang Zi Jiang Daily Chart analysis dated 271219

How I spot Thomson Medical before it started to explode upward?

Traded the above stock on 18/12/19, entry price at $0.061. Decided to post a "Estimation" in investingnote.com.

Seven trading days later, price went up to $0.067 with enormous trading volume..

Expected the price to run up to 1st supply zone near $0.075.

Perform my scanner again on 28/12/19. Thomson Medical appeared to the no.1 base on criteria for break peak scan.

A look at the daily chart on 28/12/19



A look at the Weekly chart on 28/12/19

With the enormous upbar, it will likely to attract sellers who have bought much higher price earlier

and looking to even out without loss or breakeven. As such, daily pivot level 0f $0.065 will be observed next week to see if the price can hold above PP level.

Personal Opinion- there is still room for higher price, nevertheless, no matter what we think about the stock will do or not, the market will always prove us wrong therefore always be on guard for sudden change in emotion swing and exit quick enough to breakeven or make a small profits.

Happy Profitable Trading in 2020!

Cheers



Why I decided to sell UMS on 17th December 2019?

Entry price was at a good level of $0.76. Waited patiently over the months to detect any sign of weaknesses that could cause the price to retrace back to its support level.

On 13/12/19 - the proprietary system triggered an expert alert "lack of demand", inorder to be sure

that the alert was correct, I had to analyze the chart carefully and decided to monitor the price action for the next few days till 17/12/19.

The price looked weak and decided to reap all the profits and wait at sideline unless there is clearer signal to re-enter this bandwidth to join the trend again..

As of todate, the price is weakening due to end of year and festive season, this is clearly shown on the reducing volume bars. Expect price to go lower until the next level of demand zone is strong enough to absorb all the sellings to stage an upturn.. till then, be happy with the harvest and move on scanning the next potential candidates... I have a few in mind and timing is important and buying usually occurs in a down bar...

All the best in 2020.. Happy Profitable Trading!

Why I traded Hi-P International on 12th February 2019? - till date it has traded 70cts up per share..

12th March - updated chart EOD

As shown on 11th March chart above, the trading system triggered "Professionals Distribution" yesterday and
indeed today we witnessed strong pull-back towards day's low of $1.73 before closing the day at $1.75.

There are still sellers out there, inorder for the price to move higher, sellers have to be absorbed.
For the next trading sessions, stay sideline and watch how the chart will evolve.

 

 

13th March - updated chart Morning intraday

 

Today triggered "Top Reversal", with average volume...Let's see if this is a flush out for weak holders....

 

 

 

26th March - updated chart EOD - Cut loss Alert starts to appear

 

 

 

 28th March - updated chart EOD - Cut loss at day high $1.59

 

 

 

 

 

 

 

 

Eveyone knows how to buy shares, but knowing when to sell is a special skills?

Above is a weekly chart of Hi-P International. As the shares started to bottom again in January 2019, I continued to monitor the smart money activities. The proprietary indicators started to show "Markup Bullish" on 2nd week of January, telling me that the smart money is getting into this stock soon. By early February, the relative strength line began to move above zero line meaning that the stock is moving in sync with the STI index. Subsequently, in mid-February, "Uptrend indicators were triggered over 15th and 22th confirming that the this stock is going to fly.

I took a trade on the 1st "uptrend' trigger on 12th February at $1.02..

Watching patiently for the smart money to unload their inventories... Till date, 6th March, I am watching the stock is being tested for a higher price. The range of test is between $1.47 to $1.60 range. Breaking either side will determine the future of this price trend.

As such, for now is to wait patiently for the chart to evolve.. No need rush to add lots or sell early.

Let the market tells you what you should do next.....

Be patience, let the stock trends until its bend.....

Happy Profitable Trading 2019

How to determine that an uptrend is reversing soon?

No stock will continue to go up, up and away. This is true if you agree that "Whatever goes up, will come down one day" but when?

When trading, always look at the left side of the chart, look and feel if the background is still moving up with supporting volume or reducing volume. This insight will give you the trading edge when you decide to take a trade later.

Stay focus and 2017 will be the greatest trading year with good profits for active traders.....

Cheers

How well is my expert scanner doing in the market using virtual money?

How to know if the stock is about to reverse after a selling spree?

How to achieve trading goal as a beginner?

Hi

I have created the above template for friend who starting to learn to trade.

The above is based on 5% returns per trade, 3 or more successful trades per month to achieve this amount.. Can be contra trading or short term swing trade…

 It can be achieved… This table sets the stage for an individual to do his/her homework every day for 30mins, scan the market, pick any stock that can generate the amount required for the month. At the same time, It also caution trader not to lose too much capital so that he/she can catch up

Later in the next trade….

 

How to achieve the goal?

 
Equip yourself with a market scanner that picks up stock that about to trend or already trending. It can be long or short order, no of lots to buy base on position sizing tool from my website.

Perform risk management by estimating the cut loss level, profit level, entry level and exit level.

Stay confident with the trade unit it shows weakness and exit immediately.

Stay focus on the monthly goal… Do anything to get it done, no excuses…just do it

 

 

While you are chasing the price, the Smart Money is waiting to transfer their inventory to uninformed traders

 

Extremely High Volume on the upper channel with positive day closed is it a good sign?

 

 

Looking at the extremely high volume bar and positive day closed, did it give you the confident to trade to the long side on the next day? Did the price go up the next day? if not, what had happened?

 

Shouldn't the price go up after such an exciting trading day?

 

If the price was not heading higher then what had happened? -

 

Could it be the start of a distribution so that the price can become cheaper again for the professionals to take advantage of?

 

what is the current critical support level that needed to watch closely?

 

What will happen if price break down this support level?

 

When trading, many questions run through my mind before I decided to make a trade. If there is doubt, always stand sideway to watch how the price trend will evolve before rushing in to take a stand.

 

Never rush into the Market, the Market will always be there even I am gone.

 

Happy Profitable Trading!

 

A Trading System that TELL THE TRUTH with propietary indicators and scanners

A system that provides descriptive events as the market unfold each day. This is the Trading Edge.

A time tested system that does not use complicated formulas to study the underlying demands and supply, no demand and no supply.

Seek to reveal what the Professional Activities in the market to a certain degree of accuracy.

But there is no sure thing in the market.

Always protect yourself with a risk management tool such as position sizing and chart analysis to seek out best probability of success vs profitability.

"Trading is a Team Sport"

Happy Profitable Trading 2013!