Market Outlook KLCI & DJIA, Date: 20/05/2020

Technical view on KLCI:

Again market reacted with the turning point/acceleration point (the blue vertical line) that I mentioned in last sharing 19 MAY 2020. We can see that market formed small candle continuously for 4 days until yesterday but still not yet break recent new resistance level at 1430.

Up to date, KLCI still moving within the area between Fibonacci Retracement Level 38.2% & 61.8%.

At the moment, MACD still stayed above zero level while RSI also above 50 level. Overall momentum still positive.

However if market do not break and stayed above the 1430 level, we might find a bearish divergent between the market and RSI. (Watch out signal)

The next turning point / acceleration point is at 05 JUNE 2020.

Technical view on DJIA:

On 19 MAY 2020 so called the turning point/acceleration point (the blue vertical line), DJIA formed a insider bar day.

DJIA also the same still within the range between Fibonacci Retracement Level 38.2% & 61.8%.
We can see that there is a new resistance level around 24800 level.

The momentum of DJIA still in positive side as MACD is above zero level and RSI is above 50 level.
However, RSI showing weakness with the forming of lower high.

The next turning point / acceleration point for DJIA is at 04 JUNE 2020, 11 trading days to go.

Remember to monitor the turning point / acceleration point closely.

In short, the significant resistance level not yet broken so don't be too optimistic.

Our view still the same, market not yet uptrend. PLEASE WATCH OUT!!!

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All posts and documents submitted by the Admin in this blog are solely for open discussion and education purposes only. All recommendations and opinion provided by the Admin are solely for your consideration only and you should exercise your own judgement in forming your own investment decision(s). Please also be informed that all kind of investments have risks and we recommend you to conduct sufficient searches for information in addition to referring our recommendations  and/or opinion herein, prior to making any investment decision.

You should take full responsibility of your investment decision(s) and we accept no liability whatsoever for any direct or consequential loss arising from any use of our recommendations and/or opinion provided herein or any solicitations of an offer to buy or sell any securities. Comments and opinions forwarded/shared/provided by members/followers/readers of this blog do not belong to Admin and we take no responsibility of such.

Easy Trick to See Trend Clearly

There are many types of way to plot price in the chart.

Example:

Candles

Bars

Line

Heikin Ashi

Renko

Kagi

Point and Figure

So which chart are you using?

Commonly, I think people are using bars and candles.

Today, I going to share with you a type of chart which easy to see the trend and allow you to take prompt action without any extra indicator.

Before that, lets see few examples first.

Candle Chart

Line Chart

Bar Chart

Heikin Ashi Chart

Among above 4 charts, which chart is the most easier to read and with the least noise?

The answer is very easy right?

Line chart.

However, can line chart help you to make fast decision to enter/exit position?

Line chart can help you make decision during breakout happening but before breakout happen you might facing problem hard to make decision.

Heikin Ashi (HA) Chart is the one that i refer to easy to spot the trend and can help you to make fast decision to enter/exit position depends on how you use it.

So from above HA Chart what can you see?

At here, Green HA Candle is up candle while Red HA Candle is down candle.

When price is the moving up, you can see green candle is more than red candle.

While for price down movement, you can see red candle is more than green candle.

Another benefit of this HA Chart is you can easily spot the beginning and ending of the retracement.

HA Chart is good in helping you enter and exit position in trading.

Below are the platform that you can use to see Heikin Ashi Chart:

TradingView

Investing.com

At here I will show you how to do it at TradingView.

Step 1 go to www.tradingview.com

After that follow the below picture steps:

After you completed above steps, your chart now will be HA Chart.

Thank you for your reading, hope this can help you.

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Disclaimer:

All posts and documents submitted/posted by the Admin in this blog are solely for sharing and education purposes only. All recommendations, opinions and sharing provided by the Admin are solely for your consideration only and you should exercise your own judgement in forming your own investment decision(s). Please also be informed that all kind of investments have risks and we recommend you to conduct sufficient searches for information in addition to referring our recommendations, sharing  and/or opinion herein, prior to making any investment decision(s).

You should take full responsibility of your investment decision(s) and we accept no liability whatsoever for any direct or consequential loss arising from any use of our recommendations, sharing and/or opinion provided herein or any solicitations of an offer to buy or sell any securities. Information from this blog forwarded/shared/provided by member/follower/reader/subscriber of this blog do not belong to Admin and we take no responsibility of such

How patience can help you in trading?

Usually, when there is a trading setup available in chart people will immediately want to enter a trading position.

This kind of reaction is fear of missing out trade.

When a trading setup appeared just a precondition before taking a good trade. There are still plenty of steps need to do and checking about this trading setup is having a good chance of winning or bad chance of winning.

Since non of us can guarantee what going to happen in future so the best we can do is aim for the opportunity with the highest chance to win. Or will you aim for the bad opportunity? (I think no one will go for this option when come to investment and trading)

Our goal is very clear in investment, make money.

Therefore, take action to increase the odd of winning instead of follow trading setup blindly.

Why people using fundamental analysis, technical analysis, sentimental analysis, etc...?

By doing analysis we can increase our confidence as well as reduce the risk.

Below I will use moving averages crossover and stochastic to show you the example Patience vs FOMO.

Chart 1

From above chart, can you see the difference between the entry timing for 1 and 2?

For above scenario 1, one of the most widely used trading setup is 2 moving averages crossover. When the crossover occurred, many people that follow the signal blindly will go in directly or because of fear of missing out trade.

However, when you cross check with Stochastic it tells you that currently the price is overbought. How will this interpretation help you?

Moving averages show you the trend changed from down to up while Stochastic informs you that price might going down due to overbought.
Would it be better if you wait for everything to favour you before enter a trade?

Here is the difference between the patience and impatience people.

If you don't pay attention enough about this little detail, after you bought in at 1. 

What happened to the price movement?

The price not really going up just some sort of moving sideway.

On the other hand if you wait for the Stochastic to tell you the price is oversold and potentially turn up while the overall picture of the price is still up based on moving averages. When you enter at 2, the market start to move up nicely within a short period of time and get to avoid paper losses in this scenario compare to scenario 1.

Scenario 1 and 2 different by:

Price: 4.26% 

By taking position at 2, you will gain extra 4.26% compared to 1.

You want 1 or 2? 

Make you choice.

Thank you for your reading, hope this can help you.

If this really help you, share it with you friend and like our FB page:
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Disclaimer:

All posts and documents submitted/posted by the Admin in this blog are solely for sharing and education purposes only. All recommendations, opinions and sharing provided by the Admin are solely for your consideration only and you should exercise your own judgement in forming your own investment decision(s). Please also be informed that all kind of investments have risks and we recommend you to conduct sufficient searches for information in addition to referring our recommendations, sharing  and/or opinion herein, prior to making any investment decision(s).

You should take full responsibility of your investment decision(s) and we accept no liability whatsoever for any direct or consequential loss arising from any use of our recommendations, sharing and/or opinion provided herein or any solicitations of an offer to buy or sell any securities. Information from this blog forwarded/shared/provided by member/follower/reader/subscriber of this blog do not belong to Admin and we take no responsibility of such.

Market Outlook KLCI & DJIA, Date: 01/05/2020

Technical view on KLCI:

Up to date, KLCI still moving within the area between Fibonacci Retracement Level 38.2% & 61.8%.
From the chart, we can see that market support at 38.2% level. The significant resistance level remained the same as yet broken by the market.

At the moment, MACD still stayed above zero level while RSI also above 50 level. Overall momentum still positive.

On 23 APR 2020, market reacted to the blue vertical line and turned to down direction for 3 days before turned green again.

The next turning point / acceleration point is at 19 MAY 2020, 9 trading days to go.

Technical view on DJIA:

DJIA also the same still within the range between Fibonacci Retracement Level 38.2% & 61.8%

The momentum of DJIA still in positive side as MACD is above zero level and RSI is above 50 level.

However, the significant resistance level not yet broken so don't be too optimistic.

On 28 APR 2020, DJIA also reacted to the vertical blue line closed a down day before continued up.

The next turning point / acceleration point at for DJIA is at 19 MAY 2020, 12 trading days to go.

Remember to monitor the turning point / acceleration point closely.

Our view still the same, market not yet uptrend. PLEASE WATCH OUT!!!

Like US on Facebook:
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Thank you for your reading.

Have a nice day.

Disclaimer:

All posts and documents submitted by the Admin in this blog are solely for open discussion and education purposes only. All recommendations and opinion provided by the Admin are solely for your consideration only and you should exercise your own judgement in forming your own investment decision(s). Please also be informed that all kind of investments have risks and we recommend you to conduct sufficient searches for information in addition to referring our recommendations  and/or opinion herein, prior to making any investment decision.

You should take full responsibility of your investment decision(s) and we accept no liability whatsoever for any direct or consequential loss arising from any use of our recommendations and/or opinion provided herein or any solicitations of an offer to buy or sell any securities. Comments and opinions forwarded/shared/provided by members/followers/readers of this blog do not belong to Admin and we take no responsibility of such.