281210 - I decided to trade Straitsasia when the momentum is RIGHT

Hi Traders

Referring to my earlier post on 24/12/10 where I explained the strategy that I would use to trade Straitsasia.

If you have missed the post, check it out below link:
http://volume-price-spread-for-metastock.blogspot.com/2010/12/241210-road-to-riches-depending-on-how.html

Straitsasia has been meandering within channel since May until today. The angle of the slope is above 45 degree which provides me with the clear indication that this stock has been a favorite by many
professionals. I had advised that I would be watching this stock for the next 1-2 weeks to make sure
that the base support is strong enough for the price to move up north again.

Today, the price displayed strength and I decided to take a speculative stake with calculated risk. None of my expert indicators has triggered positive buy signal yet. With past experiences, if price continues to move up for the next 2-3 days with average volume, I am sure that one of my indicators will trigger me to go long with this stock.

I hate this guts feeling to buy before my expert indicators say so, but sometimes it takes GUTS to stand up for what you believe and be responsible for the outcome. In this case, I chose to go with my GUTS feeling and please pray for me.

During the course of my trading years, I have developed numerous calculators such as Risk to Reward, Pivot Point and Fibonacci.

Below is one of the calculators that I use when planning a trade.

As an example, I use StraitsAsia for illustration.

Lot Size: 10lots (1 lot = 1000shares)

Buy Price: $2.51 (above pivot level and moving averages)

Cut Loss: $2.43  (below recent's support level)

Target: $2.75 (past known resistance level)

With the above information, I will be able to obtain an estimated rewards ratio for this trade.

If the ratio is less than 2, I would not consider to take trade.

Till then, cheers

Wishing you and me alot more profitable trades in the New Year 2011.

281210 - A week after I made 39 percents Returns, I am back today again.

Hi Traders

If you have been following my blog post, you would have noticed that I had sold off OSIM stock on 17th December after enjoying a hell of a good ride. In that post, I uploaded two charts on why I decided to sell and where were the possible support level after I sold off. If you missed the post, click on the link >>  http://volume-price-spread-for-metastock.blogspot.com/2010/12/171210-closing-trade-on-osim-after-good.html

In the post, on the weekly chart, I mentioned that I was watching two possible support levels, $1.30 - $1.45.

If price could maintain above either level, the up trend would be intact.

Look at the above chart, one day after I sold off on 17th Dec, OSIM traded to a day low's of $1.45 on 20th Dec. I was sitting on my trading desk watching how this level would be supported. If this level could not support the fall, the next possible support would be $1.30 level.

20th Dec day's low of $1.45 turned out to be a nice support level, price started to move sideway and along

the channel low. Expert indicators such as "Reduced Selling Pressure" were triggered in two occassions

indicating that the sellers could be taking break and nolonger eager to push price lower.

Indeed on the 27th, price started to turn positive with narrow spread. This was a good sign to show that price was nolonger going down.

23rd & 24th expert indicators "Reduced Selling Pressure" had clearly indentified that the price had bottom and 27th was the confirmation day.

With background strength for the past few days, OSIM was bought in by Smart Money therefore the price closed at day's high of $1.61 with substantial volume to support this buying spree. I decided to follow this

buying momentum and joined in the game while I know that most of the traders could be feared and recovering the shock when OSIM fell from $1.71 to $1.45 where profits could be totally wiped clean.

Amazing, my proprietary indicator triggered " Smart Long" after end of the day which is a Buy Signal.

Look at the Diamond Scanner below, OSIM was picked up from the 900+ stocks to be further analyze by

me for the tomorrow trading business. When both "Smart Long" & "Go Long" are shown on a particular

stock, it usually commands my attention to do further analysis on the underlying support and demand.

Just like the rest of the stocks with both expert indicators triggered, "Genting HK", "Cosco", "Indofood" etcs

these stocks are likely to display strength after the Diamond's appeared.

Therefore, you may want to check out these few stocks besides OSIM, you maybe hitting the jackpot again.

Till Then, Happy Profitable Trading and Happy New Year 2011.

241210 - The Road to Riches depending on how you draw the Trend Channel.

Hi Traders

A well drawn channel lines that are touched numerous times as price meandering between the top and bottom channel lines provide very  solid trading experience and rewarding treats if handle with surgeon's
precision.

As price moved forward with time, the expert indicators will automatically reveal the activitiy of the professionals. By exposing what the smart money is doing next, does provide abundant of trading
insights and opportunities to an average trader.

Armed with these expert trading indicators and scanners,  I would feel like sitting besides a
professional trader, watching him performing his daily trading plan and follow him closely
with every precise trade execution with calculated risk to minimise error.

Knowing what to expect next does provide better opportunity and probable outcome. But nothing is
far from the truth that trading is just a probability game. How to increase once's opportunity to win consistently with mimium losses is the dream of every trader.

I am lucky to be blessed with a logical mind that can put trading ideas into programming codes and successfully created a series of time tested scanners which assist  to pick, pull-back stock,
advancing stock, shorting stock and more. My stock analysis has really took a quantum leap after
completed the first version of  this propietary scanners and indicators early this year.

Back to the chart now, as we can see that the price has been meandering around the lower channel
line for past one week with "Reduced Selling Pressure" expert indicators.

This is to tell me that the selling has subsided for past one week and sellers are not pushing hard on
the price. Even though the price is well supported above the channel low, does not command a
Buy Order. We need more confirmation to make sure that the price is ready to move higher in
this so-called "Buy Zone"

I would like to see that the price bar turns "Green" and the trend cluster which is below the volume
bar turns "Green". With both trend indicators showing identical direction, will I consider that the
price trend has changed from down to up.

For now, it is best to stay patience and watch how the price bar will evolve for the next 1 - 2 weeks
before deciding a trade to the Long side.

Don't rush to lose money, the market is always ready for losers. Stay alert and patience, when
opportunities come, strike like a wolf  onto the sleeping herd of sheep.

• Eight years of trading experiences, I learned that being patience is a virtue many times.
• Trying to catch a run-away stock is like digging my own grave. Never be greedy to chase an
  explosive stock.
• Look to buy a stock which is on a healthy uptrend and has now returned to its support level to consolidate strength for the possible explosive upmove in weeks or months ahead.

Merry Christmas and have many Profitable Trading Ahead!

241210 - Wilmar Has Fallen 19 Pecent, Is This The Right Time Now?

Hi Traders

After my analysis on 171210, explaining how the chart should be traded and why I didnt take a trade
at the end as Wilmar was not ready to move up. More confirmation would be needed to command
a trade.

Today, five days after my analysis, Wilmar plunged further down and I was lucky that I did the right
analysis not to take trade on 171210 where the single positive indicator "Demand Coming In" was
triggered but not substantial enough to make a trade.

So is Wilmar ready to move up from here. Well, the reply is the same again, we need more
confirmation again. Today's Wilmar triggered "Reduced Selling Pressure" on a  half-day trading
session due to Pre-Season Half - Day Trading.

So what will consitute to a potential rebounce from the level. Well, I would like to see that the
following things to happen next..

1) Price continue to move slowly up with less volume and maintain above recent low of $5.60
with possibility of base testing again, this may tell me that there are no sellers to push price below
the recent's low.

2) A climatic action that open lower than the recent's low but with wider price spread up and huge
volume, this will tell me that the professionals are eager to buy into the low price position.

3) Price bar becomes GREEN and the Trend cluster below the Volume bar turns GREEN too. This is a clear sign that a new trend has taken place.

Without the above, no trade will be done for sure.

 Just be patience like a Wolf behind the bushes and waiting patiently for the Herd of Sheeps to move nearer to your advantage and strike with precision.

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!