Advice on Technical Analysis on SGX Stocks, how to trade it with japanese candlesticks..and trade with other parameters to gauge the direction of a particular stock if it is uptrend or downtrend..Of course this is only my personal view with disclaimer on my website. "To check Disclaimer, it is on the left top of the website here"

Sunday, April 25, 2010

Accumulation/Distribution Line explanation...

Well, let me explain on what I meant by this.. since got the previous email asking on the same day trading signal control..

"
...well I can't control when the accumulation/distribution will be done by big fish by as in what price and how the uptrend will move, it can be gauged based on the signal..
"


What I am trying to say is if I spot a signal on stock A at 0.505, let's say. But it didn't materialised, instead it went down for more accumulation basis. Because as I always mention, Buying and selling will need something to trigger. Small fish = Retail investors will buy when the news is out which will get you caught on top of the price and might stuck there if you don't willing to sell if you don't know when to spot the signal.

Big Fish will take opportunity to accumulate more before the news is out and disposed off when they have such a good opportunity to do it. For this case, it is the same.

Almost all of my buying price calls that I made( you can check on the archive blogs or sharejunction.com forum) has been materialised, which means when I made a buying price call at 0.505, it goes up above the price even it dropped to 0.485 before it rebound back. Eg: Ezion Holdings, PEC, Oceanus, Ezra, Ausgroup,GuocoLeisure, Capitaland, YongNam, LianBeng, etc etc...

It's just that when you bought it, holding power is one thing IF ONLY YOU SEE THE SIGNALS and you got to know when to sell it after 0.505 to reap a small spread profit. Holding on to it and let it dropped back to 0.505 doesn't do any goods on your trading strategy. Example of a scenario as below:

You got 15lots at 0.505 on 26 Apr.
Price dropped to 0.48 on 27 Apr. Maintaining at 0.485-0.49 on 28 and 29 Apr.
Suddenly it surged to 0.525 on 30 Apr.
It goes all the way up again to 0.535 before dropping back to 0.515 on 3 May.(NOT SELLING, Hoping to have it goes up more) but indeed it didn't happen.

........Unless you tell me that you are keeping it for long term, then I will not explain anymore as one thing is , the signals that I given here are all for short-term(0-3months) which you can sell it anytime based when it goes up to 0.505 based on the chart.

Of course, until now, I only made a buying price call. As I hope you can make your own judgement of selling off as I can't monitor so many things at one goal. I just hope if you can reap small profit each day will be good enough for small fish to trade with a small injection capital.

Hope it clarifies.

Star-Trader

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