171210 - Is Wilmar ready to stage a rebounce?

Hi Traders

Price fell from point 1 due to increased selling activity from the professionals, at point 2,
we witnessed that the selling had decreased and price started to move higher, this activity
of supporting the price from falling deeper was clearly identified by my propietary indicators,
"Markup (Bullish)" and followed by another "Test Base" to confirm that the selling had been
absorbed by the professionals, when there was no supply in the market, price would slowly
find its way up and any demand can easily moved price higher.  With "Go Long1, Blue
Diamond" indicator appearing after a few sessions later (mid october), it was clear that the
trend was indeed heading for higher ground.

So how would I know when to take profits?

Let's discuss further, after the "Go Long1" was triggered, price began to fall due to profits
taking as price had touched the long term support line( Orange Line). This pullback was well
supported well by the 13 days Moving Average (Black) and price rebounced and broke
the orange support line (A) , which was  the resistance line.

Price continued to head higher toward point 3 but with weakness. This was indicated
by the "End of Up Market" and "Lack of Demand" denoting that the trend may had peaked.
This was the time where one should decide to take profits and stay sideline.
Further weaknesses was confirmed by the "Supply Coming In" the next day that brought
the price back to the support level (B). Continuous weakness caused the price to break the
support level $6.18 in mid November.

With the last defense (C) support line set at $5.90, I was eager to see if this final support would
fail to hold the price again as I am planning for a Long Trade for possible sign of trend reversal. 
My stock scanner picked in "Demand Coming In" indicator for the end of day session, 17th Dec.
Since this is the first sign of positive indicator, I decided to probe more into the price & volume
action. Just by drawing channel lines and moving averages, I would be able to estimate the
probable support or resistance level in the near term.

As can see from point 4, "Demand Coming In" indicator is triggered with nice price range and
average volume. A few sessions back, "Reduced Selling Pressure & Test Base' indicators
appeared numerous times as the price moved towards point 4.
On close observation, we can see that the 17th December Day's Low (point 4) coincided with
similar low point held strongly in last September (point 2), so is the stock ready to stage an
upmove from now.

Is this the correct timing to go long now?

Frankly speaking, it is still too early to tell. One single day of positive activity may not mean that
the price is going to move up from here. So what clues am I looking for next?

As you can see that the price bar is colored Red and the trend ribbon below the volume bar is
also colored Red. If the trend is ready to move higher, I would want both the price bar and trend
ribbon to turn Green, giving me a firm confirmation that the trend has indeed turns positive.
 If a surprise "Go Long1,Blue Diamond" does appear from now onwards, I can firmly convince
that the trend has turned up and provide good rewards to risks returns.

As you can see, I do not use any standard charting package tools such as MACD,RSI,Stochastics Oscillators, RMI, ADX and more...Reason: Everyone is using the same standard indicators with standard
settings. An astute trader or your trainer can easily tweet the indicator to give much earlier entry or exit
therefore where is your competitive advantage in this ruthless game of money.

Learn how to read the price and volume activity (bar by bar analysis) as both are the real-time indicators of all. Others are just derivatives and may give contridicting triggers at times when combine together.

If it is so easy to use standard indicators to trade for a living, we would see many successful traders among us, many would have Fired their Bosses and stay at home.

 Trading financial instruments are not so simple as you think.Spend more time to educate yourself instead
 and don't rush to trade as the Markets will be there even after we're gone.

Until then, cheers..

Happy Profitable Trading Ahead!

171210 - Closing trade on OSIM after a Good Joy Ride Up The Trend.

Daily Chart

Weekly Chart

Another Powerful Demonstration of Diamond Trading System.

Hi There

This is another chart showing the powerful Diamond Scanner that picked up Sunvic on both "Blue Diamond" occasions. The strategy to buy is to wait for the next day after the Blue Diamond appears, this is to make sure that the stock continues to trade higher before a Long trade can be transacted because the Pivot level on the  Blue Diamond's Day is used as risk control or cut loss level.

Sure enough, when Blue Diamond appears, price will always move quickly higher and without triggering the
tight cut loss level. For e.g. on 07/09/10 cut loss level was set as $0.33, and  4/10/12 trade, cut loss was set at $0.39.

Both of the two cut loss level were not triggered and price soared higher from there.

This is how I Scan for Potential Setup, Analyze if the Diamonds are Genunine Before I invest in these Pretty Stones.

Current trade such as Osim is over 50% Profits level and previous trade of Golden Agriculture of 35% possible Returns. Recently just transacted Biosensor on 23/11/10, and price moved away from the cutloss
since day 2 and until today it is still "IN THE MONEY". Would it be good if the stock moves towards
break even level after purchased each time.. You  Bet.

None of my trading method involves complicated formulas or popular technical indicators used.E.g. MACD,ADX, Stochastics Oscillators, RSI, RMI.

Just by simply understanding the nature law of Demand and Supply, Lack of Demand and Supply with
drawing of Channel lines, support and resistance levels and Simple Moving Averages. I can easily determined
the FORCES behind the Professionals activities and enjoy a good hell of a ride with them.

Till then,  Happy Profitable Trading Ahead!

A whopping 46% Profits Level and Price will continue to go higher

Refer to the blog post on 3rd November, I wrote two posts....


On the first post, where I demonstrated on how OSIM price would continue to go higher with clear
strategy.
http://volume-price-spread-for-metastock.blogspot.com/2010/11/how-to-know-if-stock-will-continue-to.html

and on the 2nd post, I showed how where I took the trade on OSIM and gave clear indicator when I should
harvest the profits.
 http://volume-price-spread-for-metastock.blogspot.com/2010/11/how-to-know-when-to-sell-when-stock-is.html


Till date, there is no sell signal yet. The stock has met my 1st target level of $1.60, a whopping 46% profits  from my bought price of $1.12 in October, just merely 33 trading days of holding.

So if there is no sell signal now, where will the price be heading next? my price projection shows
a target near $2.10 in 1st quarter 2011. Hopefully, i am right on target again.

As you can see, I have covered how I traded Osim from the start and analyzed the trade along the
way in this blog, it is not a coincidence or lucky trade.

This trade is carefully planned and traded as it appears in my Diamond Scanning System.

This is one of the many  trades that appear to me each time for analysis when pick up by the
Scanning System which is capable of detecting the unusual activities of any stocks and display
them for my further analysis for possible transaction the next day.

Till Then, Happy Profitable Trading.

The Power of Knowing When The Trend Has Ended or Just Started to Move North

Add caption

Hi There,

This chart demonstrate the Expert Indicators that appear automatically as price moves forward each day.

You may ask how do I know if the Stock Trend is going to Peak off and started to turn south.

Look at the chart above, as stock peaked each time, there are cluster of indicators showing that

the Stock is getting weak as its approaching would-be Peak level. E.g. Early January 2004, the

indicators showed that "Professionals are distributing" and followed by "Weakness coming in &

"Supply coming in".  When cluster of indicators presented subsequently, denoted very powerful

trend change.

In 2006 and Mid 2007 demonstrated again the Capability of the trading system to show that the

Stock had once again peak the trend and weakness subsequently brought the stock trend down

the hill.

On the Bullish side, when a new uptrend is forming, the system is capable of identifying the exact

spot for Long trade. E.g Early 2003, before bullish indicator "Go Long1" were triggered, weeks before

, "Reduced Selling Pressure & Test Base" indicators appeared numerous times to confirm that

the base foundation was strong and tough to stage an upmove later. The stock moved from 2003

year lowest value of $0.17 and peak on March 2004 at  $0.74. Enormously returns indeed.

This was not a concidence case, in March 2009, the stock based off with cluster of indicators

"Reduced Selling Pressure + Go Long1" appeared to indicate that the stock was once again ready for another upmove. The March 2009 Lowest value of $0.19 had moved north until today 3rd December

2010 of value $0.32.

If you ask me if the stock trend has reach its peak today, the answer is clearly "No", because the

cluster of bearish indicators have not appeared yet. Until then, just hold on to the stock and let the

stock to trend until its bend and turn south, by then, you will be presented with those cluster of bearish

indicators and its the time for Harvesting. 

The job of a Successful Trader is to Trade Well Each Day, not Counting Daily Profits.

If you trade well each time, you will be rewarded naturally.

Till then, Happy Profitable Trading Ahead!

Power Strategy #3 - Go Long + Uptrend Arrow

Hi there,

I did a stock scan for end of day and the above stocks are picked up by the Blue Diamond Scanning System.

I am particularly interested in the first stock that is listed," Biosenor" which has good amount of transaction today.

Below is the chart which shows clusters of bullish signals, "Test Base + Go Long + Uptrend".
This is a powerpack combination and I am sure that this stock has more to show us in the near
term even the overall current market condition is weak and indecisive.

For the this trade, cut loss is set at $1.12 and below, the target is near $1.30 - $1.35, duration: 1month ++

The Power of Diamond Trading for Maximum Returns

This stock is picked up by Diamond's Scanner for potential Long or Short Order this week.

The diagram above demonstrated how the Diamonds (Long or Short) were triggered in the past

and providing enormous profit advantage and reduced risk (cut loss was placed just below recent

support or resistance level).

Thanks for reading! More Profitable Trades ahead.