Wednesday, 27 April 2016

Trendline drawing is fun!

Decided to do some trendline drawing practice out of boredom. Just a few stocks I was watching.
Pictures paint a thousand words? (Hack care about macd, stoch, rsi and what not... just kidding)

Can't seem to break out of its downtrend channel. Secondary uptrend occurred since my previous update but uptrend broken once ex-dividend. :(

Going sideway soon?
After being ditched by STI, will this salted fish break out to life again?

On a happy steep climb. For now.

* Disclaimer: These are NOT investment advice. Your own discretions apply in the chart usage.

Charting workflow in a nutshell

- Zoom out to 5 years or maximum, zoom in to 2 years, zoom in to 6 months or even more recent depending on your trade time horizon. See the macro and micro trends.

- Find trend, draw lines. Lines should be touching closing price of candles.
(no trend don't enter. sideway stocks don't enter. downtrend can consider shorting.)

- Determine the entry price based on an established trend, indicators or a break-out.

- Weigh the downside versus upside potential (risk to reward ratio).

- Determine the stop-loss price somewhere below the support. (eg. Stanchart can set stop-loss, put minimum selling price much lower cos if price breaks below it that would deactivate the stop loss.)

- Position sizing, calculate what is a fair amt of shares to buy (eg. not more than
x% of investment capital).

- If price follows trend channel, let your profit runs. If it fails, get out.

- Set trailing stop losses (based on new suport levels) to reap profit before trend-reversal happens.

- Sell if bad news about the company broke out or major support level broken.

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