Highlights

MQTrader Education Series

Author: MQTrader Jesse   |   Latest post: Wed, 5 Sep 2018, 05:13 PM

 

MQ Trader – Technical Indicators (Part 4) [UNISEM]

Author: MQTrader Jesse   |  Publish date: Thu, 6 Sep 2018, 03:45 PM


Introduction

In this article, we will be explaining on the last 2 technical indicators which are stochastic oscillator and average directional index (ADX) that are used in MQ Technical Analysis. This post is the continuation of the previous post, so it is recommended for you to read our previous post – MQ Trader – Technical Indicators (Part 3) [UNISEM] to have a better understanding on this topic.

MQ Technical Indicators

Source: MQ Trader Stock Analysis System

  1. Stochastic Oscillator

The Stochastic Oscillator is a momentum indicator that shows the location of the close relative to the high-low range over a set number of periods. As a rule, the momentum changes direction before price. As such, bullish and bearish divergences in the Stochastic Oscillator can be used to foreshadow reversals.

Calculation of stochastic oscillator:

%K = 100(C - L14)/(H14 - L14)

Where:

C = the most recent closing price

L14 = the low of the 14 previous trading sessions

H14 = the highest price traded during the same 14-day period

%K= the current market rate for the currency pair

%D = 3-period moving average of %K

The oscillator ranges from zero to one hundred. Traditional settings use 80 as the overbought threshold and 20 as the oversold threshold.

Bullish: when the fast stochastic oscillator (Stoch %K) crosses above the slow stochastic oscillator (Stoch %D) and it is in the oversold (below 20) treshold

Bearish: when Stoch %K crosses below Stoch %D and it is in the overbought (above 80) threshold

Source: MQ Trader Stock Analysis System

Figure 1: Stochastic Oscillator in UNISEM’s daily technical chart

To filter the noise of stochastic oscillator, D% and K% are multiplied with 3 days moving averages to obtain D% 3MA and D% respectively to form smoother curves as shown in Figure 1.

According to Figure 1, the fast stochastic oscillator (Stoch %K) crosses above the slow stochastic oscillator (Stoch %D) but its value is 73.976 which is lesser than 80. Hence, UNISEM’s share price movement is rated as neutral with the trend more towards to bullish at the moment.

To view the technical chart in MQ Trader system, please proceed to Stochastic Oscillator Technical Chart.

  1. Average Directional Index (ADX)

The Average Directional Index (ADX) is used to determine when price is trending strongly. In many cases, it is the ultimate trend indicator. Trading in the direction of a strong trend reduces risk and increases profit potential. To know more about ADX, kindly read MQ Trader Strategy - ADX Crossover.

Bullish: when Plus Directional Indicator (+DI) is above Minus Directional Indicator (-DI) and ADX is more than 25

Bearish: when Plus Directional Indicator (+DI) is below Minus Directional Indicator (-DI) and ADX is more than 25

Source: MQ Trader Stock Analysis System

Figure 2: ADX in UNISEM’s daily technical chart

Figure 2 shows that the +DI crosses above –DI while ADX reached 20.47 which is lower than 25, so it is categorized as neutral with the trend is more towards bullish range.

For accessing to the technical chart in MQ Trader system, you can visit ADX Technical Chart.

Conclusion

Technical indicators are very important to predict the future share price by using the historical data, as there are many case studies that have been proven that history always repeats itself. However, it is impossible for us to have technical analysis on the hundreds of shares daily to identify the shares with bullish trend. Thus, both MQ technical screener and MQ Technical Rating play vital roles in filtering the shares with bullish trend within seconds. For more information, you can read MQ Trader – Technical Screener for Up-trending Stocks and MQ Trader – Technical Analysis [UNISEM] for understanding how technical screener and technical rating works in MQ Trader stock analysis system.

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 
Labels: UNISEM
  Be the first to like this.
 

MQ Trader – Technical Indicators (Part 3) [UNISEM]

Author: MQTrader Jesse   |  Publish date: Wed, 5 Sep 2018, 05:13 PM


Introduction

In this blog post, we will be explaining on 2 of the technical indicators including Rate of Change (ROC) and Money Flow Index (MFI) which are used in MQ Technical Analysis. This topic is the continuation of the previous blog post, please read MQ Trader – Technical Indicators (Part 2) [UNISEM] for better understanding.

MQ Technical Indicators

  1. Rate of Change (ROC)

The Rate-of-Change (ROC) indicator, which is also referred to as simply Momentum, is a pure momentum oscillator that measures the percent change in price from one period to the next. The ROC calculation compares the current price with the price "n" periods ago. The plot forms an oscillator that fluctuates above and below the zero line as the Rate-of-Change moves from positive to negative.

Bullish: when it has a positive Rate-of-Change and the stock price is above the 20-day SMA.

Bearish: when it has a negative Rate-of-Change and the stock price is below the 20-day SMA.                   

Source: MQ Trader Stock Analysis System

Figure 1: ROC in UNISEM’s daily technical chart

Based on Figure 1, it is still experiencing bullish trend, as its ROC is above SMA 20. Besides, ROC is increasing steadily showing that the share price is increasing over the time.

To view the technical chart in MQ Trader Stock Analysis System, please visit ROC Technical Chart.

  1. Money Flow Index (MFI)

Money Flow Index (MFI) is a technical oscillator that is able to identify overbought or oversold conditions of a stock. It is also known as volume-weighted RSI which enhances the function of RSI (just price) by incorporating both price and volume data. 14 days of period is commonly used as default by traders to determine the MFI in the technical analysis.

Calculation of MFI

Step 1: Calculate typical price for each day to obtain the average of high price, low price and the closing price.

Step 2: Calculate the positive and negative money flow

Step 3: Calculate the money ratio

Money flow is divided into positive and negative money flow:

  • Positive money flow: The sum of the money flow of all the days where the typical price is higher than the previous day's typical price.
  • Negative money flow: The sum of the money flow of all the days where the typical price is lower than the previous day's typical price.
  • If typical price is unchanged, that day will be discarded.

Step 4: Calculate the money flow index

The Money Flow Index (MFI) is an oscillator that moves between 0 and 100. It uses both price and volume to measure buying and selling pressure. Typically, MFI above 80 is considered overbought and MFI below 20 is considered oversold. Strong trends can present a problem for these classic overbought and oversold levels. MFI can become overbought (>80) and prices can simply continue higher when the uptrend is strong. Conversely, MFI can become oversold (<20) and prices can simply continue lower when the downtrend is strong.

Source: MQ Trader Stock Analysis System

Figure 2: MFI in UNISEM’s daily technical chart

Figure 2 shows the MFI with the value of 76.319 which is approaching 80. Hence, UNISEM’s share is still considered as neutral which is neither overbought nor oversold at the moment.

To view the technical chart in MQ Trader, please visit MFI Technical Chart.

We will continue the last part of this topic in our next blog post – MQ Trader – Technical Indicators (Part 4) [UNISEM].

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 
Labels: UNISEM
  Be the first to like this.
 

MQ Trader – Technical Indicators (Part 2) [UNISEM]

Author: MQTrader Jesse   |  Publish date: Tue, 4 Sep 2018, 05:20 PM


Introduction

In this blog post, we will be discussing on 3 of the technical indicators including Moving Average Crossover, Moving Average Convergence-Divergence (MACD) and William % R which are used in MQ Technical Analysis. This topic is the continuation of the previous blog post, please read MQ Trader – Technical Indicators (Part 1) [UNISEM] for better understanding.

MQ Technical Indicators

  1. Moving Average Crossover

A moving-average crossover occurs when two moving averages each based on different degrees of smoothing cross. Such a crossover can be used to signal a change in trend. The two most popular types of moving averages are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA).

For our analysis, we look at 10 day SMA and 50 day SMA. The trend is bullish when the 10 day SMA is above the 50 day SMA, and bearish if 10 day SMA is below 50 day SMA.

Source: MQ Trader Stock Analysis System

Figure 1: SMA 10 and SMA 50 in daily technical chart of UNISEM

According to Figure 1, SMA 10 is above SMA 50 in UNISEM daily technical chart. This means that the current trend of UNISEM’s price movement is bullish, as average share price in these 20 days is higher than the average share price in the past 50 days.

To view the technical chart, please visit Moving Average Crosser Technical Chart.

As compared to EMA, SMA produces more lagging effect, as SMA is computed by averaging weightage of the share price over the past share price evenly while the calculation of EMA put higher priority or weightage on the most recent share price. If you would like to find out more about EMA Crossover, you can refer to MQ Trader Strategy – EMA 5 Crossover for more information.

  1. Moving Average Convergence-Divergence (MACD)

MACD is a trend-following momentum indicator that shows the relationship between two moving averages of prices. The MACD is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the "signal line", is then plotted on top of the MACD, functioning as a trigger for buy and sell signals. The indicator is bullish when the MACD rises above the signal line, and is bearish when the MACD falls below the signal line.

Source: MQ Trader Stock Analysis System

Figure 2: MACD trend in UNISEM’s daily technical chart

Figure 2 shows that MACD is still above the signal line, so UNISEM’s price movement is still considered as bullish. To know more about MACD, please visit MQ Trader Strategy – MACD and RSI.

To see the technical chart in a clearer view, please proceed to MACD Technical Chart.

  1. William % R

William %R is a momentum indicator that reflects the level of the close relative to the highest high for the look-back period. William %R oscillates from 0 to -100. Readings from 0 to -20 are considered overbought. Readings from -80 to -100 are considered oversold.

Calculation of William %R:

%R = (highest high – closing price) / (highest high – lowest low) x -100

Source: MQ Trader Stock Analysis System

Figure 3: William % R in UNISEM’s daily technical chart

Based on Figure 3, William % R shows -6.237 which falls in the range of 0 to -20, so its current trend is categorized as Overbought which indicates that the share is traded above its true value.

To see the technical chart, kindly view William % R Technical Chart for more details.

The rest of the technical indicators will be explained in our next blog post – MQ Trader – Technical Indicators (Part 3) [UNISEM]. To know more about Technical Indicators, please visit MQ Trader – Variables of Technical Screener.

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 

 

Labels: UNISEM
  Be the first to like this.
 

MQ Trader - Technical Indicators (Part 1) [UNISEM]

Author: MQTrader Jesse   |  Publish date: Mon, 3 Sep 2018, 05:51 PM


Introduction

Technical analysis is basically performed by using various technical indicators to predict future price movement from historical trading data. Some people think technical indicators are mainly used by active traders to analyse short-term price movements. However, long-term investors do refer to technical indicators to search for entry and exit points most of the time. Thus, technical analysis is very useful for both short-term and long-term investors.

There are thousands of technical indicators available but it is not possible for us to use all of them to make our investment decision. Hence, several technical indicators that can work well on the stocks in Malaysia market have been selected and incorporated in MQ Trader stock analysis system.

In this blog post, we will be discussing on how we utilise technical indicators in MQ Technical Analysis. To have a better understanding on this topic, you can read MQ Trader –Technical Analysis [UNISEM].

What is Technical Indicator?

Technical indicators are mathematical calculations based on the price, volume, or open interest of a security or contract. By analyzing historical data, technical analysts use indicators to predict future price movements. There are 9 technical tests introduced in MQ Trader system to confirm and enhance the accuracy of trading signals of each technical test. In this article, we will cover 2 of the technical tests.

Source: MQ Trader Stock Analysis System

There are 9 technical indicators introduced in MQ Trader system to confirm and enhance the accuracy of trading signals with each other. In this article, we will cover 2 of the technical indicators.

1.       Rising Moving Average

 

Source: MQ Trader Stock Analysis System

The rising moving average is one of the simplest technical indicator used in trading. The trend is bullish when the 10 day Moving Average is rising in the past 3 days; bearish when it is falling in the past 3 days, and neutral otherwise.

Figure 1: SMA 10 trend of UNISEM

According to Figure 1, UNISEM’s trend is bullish at the moment, as its 10 day Moving Average is rising in the past 3 days. To view the technical chart in MQ Trader Stock Analysis System, please visit Rising Moving Average Technical Chart.

2. Relative Strength Index (RSI)

We have defined RSI in our previous blog post regarding to MQ Technical Screener, so you can read MQ Trader – variables of Technical Screener for more information.

Source: MQ Trader Stock Analysis System

RSI is a momentum indicator that compares the magnitude of recent gains to recent losses in a range between 0 - 100 to determine overbought and oversold conditions of a stock. A stock is deemed to be overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a good candidate for a pullback. Likewise, if the RSI approaches 30, it is an indication that the stock may be getting oversold and therefore likely to become undervalued.

 

Figure 2: RSI of UNISEM

Figure 2 shows that the value of RSI is currently 55 at the moment which is within the range between 30 and 70. This, its current trend is categorized as neutral trend, as it falls into the range which is neither in the bullish (>70) nor bearish (<30) trend. To see more details, you can proceed to Moving Average Crossover Technical Chart to have a clearer image of the chart.

We will explain the rest of the technical tests in the next blog post – MQ Trader – Technical Tests (part 2) [UNISEM]. To understand more about technical indicators, please visit MQ Trader – Variable of Technical Screener.

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 
Labels: UNISEM
  Be the first to like this.
 

MQ Trader – Technical Analysis [UNISEM]

Author: MQTrader Jesse   |  Publish date: Wed, 29 Aug 2018, 05:24 PM


Introduction

There are two main techniques which are technical analysis and fundamental analysis, are useful to analyse the securities based on securities’ price and company’s financial performance respectively. For fundamental analysis, we have explained it in details in our past post and you can read MQ Trader – Fundamental Analysis [TOPGLOV] for understanding more.

In this blog post, we will be focusing on technical analysis by using UNISEM for demonstration purpose.

What is Technical Analysis?

Technical analysis is widely used by traders to study securities to make investment decisions by focusing on the statistical analysis of price movements. Some people may think technical analysis is very complicated but its concept is actually quite simple to be understood, as it is literally based on the analysis of supply and demand in the market. It is a study to attempt in understanding the market sentiment behind the price trend. Stocks with good technical analysis are not always the stocks with good fundamentals, as technical analysis does not consider fundamental attributes of the stocks.

MQ Technical Analysis

Similar to MQ Fundamental Analysis, MQ Trader also provides MQ Technical Analysis which is an incredible tool that rates stocks accordingly based on a series of technical tests. This rating system gives us a quick view on the overall technical analysis result of a stock before we look into the technical chart of the stocks. It can help us to save much time to identify the stocks with bullish trend efficiently. 

Source: MQ Trader Stock Analysis System

To start your technical analysis, MQ technical Analysis page can be found by pressing the “hamburger” which is located at the top left side of the page. Then, “Run Technical Analysis” will be found in the drop down menu as shown in the figure above.

According to MQ Trader Technical Analysis, UNISEM scores 4.1/5.0 for MQ Technical Rating at the moment. This shows that it is experiencing bullish trend currently, as stocks with MQ Technical Rating of more than 3.0/5.0 are categorized as up-trending stocks based on the technical criteria of MQ Trader. MQ Technical Rating is evaluated based on 9 technical indicators with strict requirement set by MQ Trader. Rating breakdown is also available for us to determine the extent of bullish or bearish trend of a stock. This rating may fluctuate from time to time when there is the presence of catalysts or news which can affect the market sentiment immediately. Simultaneously, the share price will rise or fall within a short period.

MQ Technical Indicators will be discussed in the coming blog post – MQ Trader – Technical Indicators (Part 1) [UNISEM]. Stay tuned!

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 
Labels: UNISEM
  Be the first to like this.
 

MQ Trader – Fundamental Tests [TOPGLOV] (Part 2)

Author: MQTrader Jesse   |  Publish date: Tue, 28 Aug 2018, 05:15 PM


Introduction

This blog post in the continuation of our previous post – MQ Trader – Fundamental Tests [TOPGLOV] (Part 1), so it is recommended to read our previous post to have a better understanding on MQ Fundamental Tests.

In this article, we will be focusing on the other 4 MQ Fundamental tests.

MQ Fundamental Tests

  1. Stock currently undervalued?

Anything with a PE over 15 looks unattractive based on price. The only exception that we allow to our PE rule is for growth stocks with consistent records of rising earnings. If a company's earnings are advancing faster than the market average, it can command a higher-than-average price/earnings ratio.

Table 4: Annual PE ratio of TOPGLOV

Financial Year

PE

31 Aug 2017

21.13    

31 Aug 2016

14.74

31 Aug 2015

17.04    

31 Aug 2014

16.46

31 Aug 2013

19.36    

31 Aug 2012

16.14    

31 Aug 2011

26.57

31 Aug 2010

15.24    

31 Aug 2009

12.12

31 Aug 2008

10.92

 

TOPGLOV passes this section and it is not undervalued at the moment, as it has rising earnings over the years despite of its PE ratio which is higher than 15. The full data of TOPGLOV's PE ratio can be viewed through TOPGLOV's PE Ratio in MQ Trader.

  1. Potential higher earnings this year compare to last year?

A company with potentially high earnings this year compare to the previous year will likely lead to increasing share price.

To pass this criteria, a company must achieve higher T4Q (last 4 quarters) earnings (or latest reported annual earnings) compare to the previous year's earnings.

Figure 2: Annual Revenue of TOPGLOV

Figure 2 shows that TOPGLOV’s revenue in T4Q is higher than the last financial year’s, so it passes this criteria and it has potential higher earnings this year compared to last year.

3. Actively covered by analysts?

A stock that is fairly caught on by investors and has sufficient liquidity will attract coverage by analysts.

To pass this criteria, a company must be covered by 5 or more different analysts in the past 6 months

Source: MQ Trader Stock Analysis System

Figure 3: Price Target of TOPGLOV

Price target of TOPGLOV can be viewed by clicking onto “View Price Target” on MQ Fundamental Rating page. Then, the number of analysts who cover TOPGLOV with price target can be found in the list as shown in Figure 3. Hence, TOPGLOV passes this requirement, as it is actively covered by a number of analysts.

4. Potential 20% upside in consensus Price Target?

Consensus price target from multiple analysts provides a good guidance on the natural ceiling price of a stock. A stock with high potential upside (concensus price target minus current stock price) offers good opportunity and a margin of safety to invest in the stock.

To pass this criteria, the concensus price target must be derived from at least 3 different analysts, and at least 20% above the current stock price.

Figure 4: Target price provided by UOBKayHian, PUBLIC BANK and KENANGA.

TOPGLOV fails this section, as the most recent target prices provided by 3 different analysts including UOBKayHian, PUBLIC BANK and KENANGA are lower than TOPGLOV’s share price.

Overall, TOPGLOV is considered as a company with good fundamentals, as it passes 6 out of 8 fundamental tests. It scores 4.1/5.0 for its MQ Fundamental Rating which is explained in MQ Trader – Fundamental Analysis [TOPGLOV].

Conclusion

Complicated and lengthy calculations can be avoided, as MQ Fundamental analysis tool is able to extract and tabulate financial data accordingly. Moreover, the data is processed to calculate various financial ratios which are used for comparison in MQ Fundamental Tests to determine the performance of a particular company over the time. Hence, we can avoid capitals from trapping into penny stocks or stocks with poor fundamentals to maximize our capital gain within a short time.

Fundamental Screener is available in MQ Trader Stock Analysis System to screen stocks with good fundamentals within a few seconds. If you are interested to know more about MQ Fundamental Screener, please proceed to MQ Trader – Fundamental Screener.

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 
Labels: TOPGLOV
  Be the first to like this.
 

MQ Trader – Fundamental Tests [TOPGLOV] (Part 1)

Author: MQTrader Jesse   |  Publish date: Mon, 27 Aug 2018, 05:35 PM


Introduction

Fundamental analysis can be a very boring task if you do not have the right tool to perform it efficiently and systematically. MQ Trader Stock Analysis System provides a platform for traders to carry out fundamental analysis by using a series of fundamental tests to determine whether the company is with good fundamentals.

According to our previous blog post – MQ Trader – Fundamental Indicators [TOPGLOV] (Part 1), we have walked through the fundamental indicators that we are using in performing MQ Fundamental Analysis. It is important to know how to make use of the fundamental indicators to identify the value of a stock.

In this article, we will be explaining on the fundamental tests that are used in MQ Trader Stock Analysis System to rate the stocks in terms of the companies’ performance by comparing the values of one or multiple fundamental indicators.

What is MQ Fundamental Test?

MQ Fundamental Test is an analysis technique used to evaluate the fundamentals of a company strictly based on a series of criteria set by MQ Trader. This series of criteria is created according to the common questions that appear in the mind of most investors when they are looking for stocks with good fundamentals.

TOPGLOV will be used for demonstration in this article. Figure below portrays the fundamental rating with its rating breakdown. To view TOPGLOV fundamental rating and its rating breakdown, please visit TOPGLOV's MQ Fundamental Analysis.

There are 8 fundamental tests which are applied in MQ fundamental analysis. In this article, we will be explaining the first 4 fundamental tests in MQ Trader Stock Analysis system:

  1. Increased earnings over time?

An established, well-run company should increase its earnings over time, even if that growth isn't as strong as younger, start-up companies that carry more risk.

To pass this criteria, a company must achieve earnings growth in 4 of the last 5 years, or at least 7 of the last 10 years.

Figure 1: Annual Revenue chart of TOPGLOV

Figure 1 shows that TOPGLOV passes this requirement, as its revenue is increasing steadily over the past 4 years. To see the revenue chart of TOPGLOV, please visit TOPGLOV's Revenue Chart in MQ Trader

2. Converting sales into profit?

Buffett has observed that companies with high-cost operations typically find ways to sustain or add to their costs. Every dollar spent unwisely deprives the owners of the business of a dollar of profit.

To pass this criteria, a company must achieve at least 20% profit over revenue in 4 of the last 5 years, or at least 7 out of the last 10 years.

Table 1: TOPGLOV’s percentage of profit over the past 10 years.

Financial Year

Revenue (‘000)

Profit (‘000)

Percentage of Profit (%)

31 Aug 2017

3,409,176

332,704

9.76

31 Aug 2016

2,888,515

360,729

12.49

31 Aug 2015

2,510,510            

279,781

11.14

31 Aug 2014

2,275,366

180,523

7.93

31 Aug 2013

2,313,234            

196,500

8.49

31 Aug 2012

2,314,454            

202,726

8.76

31 Aug 2011

2,053,916

113,091

5.51

31 Aug 2010

2,079,432            

245,231

11.79

31 Aug 2009

1,529,077

169,133

9.86

31 Aug 2008

1,377,931

110,065

10.08

 

Table 1 shows that TOPGLOV never achieve 20% of profit percentage for the past 10 years, so it fails this criteria. The full data of TOPGLOV's revenue and profit is available in MQ Trader Stock Analysis System. Please visit TOPGLOV's financial data in MQ Trader

3. Increased shareholder value?                   

Return on Equity (ROE) measures a company's profitability by revealing how much profit a company generates with the money shareholders have invested. A positive ROE means the shareholder's value have increased over time.

To pass this criteria, a company must achieve minimum ROE of 10% in 4 of the last 5 years, or at least 7 out of the last 10 years.

Table 2: Annual ROE of TOPGLOV

Financial Year

ROE (%)

31 Aug 2017

16.49    

31 Aug 2016

19.74

31 Aug 2015

34.85    

31 Aug 2014

12.93

31 Aug 2013

14.48    

31 Aug 2012

15.83    

31 Aug 2011

9.89

31 Aug 2010

22.01    

31 Aug 2009

41.55

31 Aug 2008

15.94

 

Table 2 shows that TOPGLOV’s ROE exceeds 10% in 9 out of last 10 years, so it passes this criteria and it increases the shareholders’ value over the time. To more about TOPGLOV's ROE, please view TOPGLOV's ROE in MQ Trader

4. Pays a cash dividend?

A company doesn't need to increase dividends every year but it does need to reward shareholders by paying cash dividend consistently over time.

We like to see company pays dividend in at least 4 out of the last 5 years, or at least 7 out of the last 10 years.

Table 3: Annual Dividend of TOPGLOV

Financial Year

DPS (Cent)

Div Yield

31 Aug 2017

14.50    

2.58

31 Aug 2016

14.50

3.41

31 Aug 2015

11.50    

1.49

31 Aug 2014

16.00

3.34

31 Aug 2013

16.00    

2.61

31 Aug 2012

16.00    

3.02

31 Aug 2011

11.00

2.26

31 Aug 2010

16.00    

2.64

31 Aug 2009

11.00

1.58

31 Aug 2008

11.00

2.71

 

Table 3 shows the amount of dividend paid by TOPGLOV to shareholders every year. This shows that TOPGLOV distributes dividend constantly and it passes this requirement. To see the full information on TOPGLOV's dividend yield, please proceed to TOPGLOV's Dividend Yield in MQ Trader

To continue reading the second part of this topic, kindly proceed to MQ Trader – Fundamental Tests [TOPGLOV] (Part 2).

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 

 

Labels: TOPGLOV
  ngyuzhi likes this.
 
ngyuzhi Good analysis write up. Thanks for sharing.
27/08/2018 19:31

MQ Trader – Fundamental Indicators [TOPGLOV] (Part 3)

Author: MQTrader Jesse   |  Publish date: Fri, 24 Aug 2018, 05:35 PM


Introduction

In this blog post, we will be continuing from where we stop in the previous blog post – MQ Trader – Fundamental Indicators [TOPGLOV] (Part 2) which explains the financial ratios (i.e Earnings Per Share, PE Ratio, Dividend Per Share) used in MQ Fundamental Charts. Dividend Yield, Net Asset Per Share and Return Of Equity will be discussed in this post.

Financial ratios

  1. Dividend Yield (Div Yield)

Dividend yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price. It is represented in percentage which measures the return on investment for a stock.

Calculation of Dividend Yield:

Figure 1: Annual dividend yield of TOPGLOV

Figure 2: Quarter dividend yield of TOPGLOV

Figure 1 and 2 show that TOPGLOV has considerably high dividend yield over the years. For investors who are interested to earn income from companies’ dividend, should focus on this fundamental indicator.

  1. Net Asset Per Share (NAPS)

Net Asset per Share (NAPS) is known as the book value per share which is an expression for net asset value that represents the value per share of a mutual fund, exchange-traded fund (ETF) or a closed-end fund. If NAPS is higher than the share price, then the share will be considered as undervalued, as it means that the stock is traded at a cheaper price than its actual value.

Calculation of NAPS:

NAPS = Net Asset Value (NA) / Number of Shares Outstanding

Where NA = Assets – Liabilities

Figure 3: Annual NAPS of TOPGLOV

Figure 4: Quarter NAPS of TOPGLOV

Figure 3 and 4 show that TOPGLOV has low NAPS (1.78 in T4Q) which is lower than its share price. This indicates that it is not undervalued at the moment.

  1. Return of Equity (ROE)

Return on Equity (ROE) measures a company's profitability by revealing how much profit a company generates with the money shareholders have invested. A positive ROE means the shareholder's value have increased over time. The higher the return on equity, the more efficient the company's operations are making use of those funds.

Calculation of ROE:

Return on Equity = Net Income/Shareholder's Equity

Figure 5: Annual ROE of TOPGLOV

Figure 6: Quarter ROE of TOPGLOV

Figure 5 and 6 indicate that TOPGLOV has a high positive ROE over the years. Hence, it is increasing shareholders’ value throughout the years.

Conclusion

Fundamental indicators are powerful tools that are able to extract and simplify the financial data systematically. However, they have lagging effect because the financial data will only be generated once per quarter of a year when the financial reports are released. As a result, financial indicators are unable to provide information as fast as technical indicators. Despite all that, the financial indicators are useful to record the historical performance of a company, as history always repeats itself.

MQ Fundamental Screener which screens stocks based on fundamental indicators is also available in MQ Trader Stock Analysis System. For more information, please proceed to MQ Trader – Fundamental Screener.

Next, we will be discussing on the fundamental tests used in MQ Fundamental Analysis – MQ Trader – Fundamental Tests [TOPGLOV] (Part 1). Stay tuned!

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 
Labels: TOPGLOV
  Be the first to like this.
 

MQ Trader – Fundamental Indicators [TOPGLOV] (Part 2)

Author: MQTrader Jesse   |  Publish date: Thu, 23 Aug 2018, 05:43 PM


Introduction

In this blog post, we will be explaining the financial ratios used in MQ Trader Fundamental Analysis. This post is the continuation of the previous post related to the first 2 fundamental indicators. For better understanding, kindly read MQ Trader- Fundamental Indicators [TOPGLOV] (Part 1).

Financial ratios

  1. Earnings Per Share (EPS)

Earnings per share (EPS) are the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serve as an indicator of a company's profitability.

Calculation of EPS

EPS = (Net Income - Dividends on Preferred Stock) / Average Outstanding Shares

Figure 1: Annual EPS of TOPGLOV

Figure 2: Quarter EPS of TOPGLOV

Figure 1 and 2 show that TOPGLOV’s EPS is increasing over the past 4 years. It is anticipated that its EPS will rise in this year, as EPS in T4Q is higher than last year’s.

To see the details, please proceed to Annual EPS Chart of TOPGLOV.

  1. Price Earnings Ratio (PE)

The price-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings. The value of this indicator can determine whether the stock is currently undervalued.

The calculation for PE ratio:

Market Value per Share / Earnings per Share

Anything with a P/E over 15 looks unattractive based on price. The only exception that we allow to our P/E rule is for growth stocks with consistent records of rising earnings. If a company's earnings are advancing faster than the market average, it can command a higher-than-average price/earnings ratio.

Figure 3: Annual PE ratio of TOPGLOV

Figure 4: Quarter PE ratio of TOPGLOV

According to the statement above, TOPGLOV has consistent records of rising earnings, so it is considered to pass this criteria despite its PE ratio exceeds 15.

To view the data and the charts, kindly visit Annual PE chart of TOPGLOV for information.

1.       Dividend Per Share (DPS)

Dividend per share (DPS) is the sum of declared dividends issued by a company for every ordinary share outstanding. DPS gauges how profitable a company is over a specific period of time.

Calculation of DPS:

Where

  •  D: Sum of dividends over a period (usually a quarter or a year)
  • SD: Special, one-time dividends in the period
  • S: Ordinary shares outstanding for the period

Figure 5: Annual DPS of TOPGLOV

Figure 6: Quarter DPS of TOPGLOV

Figure 5 and 6 show that TOPGLOV has relatively high DPS which is a key indicator for those who are keen to earn income from company’s dividend.

To access into the DPS fundamental charts of TOPGLOV, please proceed to Annual DPS Chart of TOPGLOV to view the details.

Dividend yield (Div Yield), Net Asset Per Share (NAPS), Return of Equity (ROE) will be walked through in our next blog – MQ Trader – Fundamental Indicators [TOPGLOV] (Part 3).

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 
Labels: TOPGLOV
  Be the first to like this.
 

MQ Trader – Fundamental Indicators [TOPGLOV] (Part 1)

Author: MQTrader Jesse   |  Publish date: Wed, 22 Aug 2018, 02:51 PM


Introduction

Financial statements are the main source of information to perform fundamental analysis. Hence, it is important to know how to extract and interpret the financial data. There are a number of fundamental indicators which are widely used by investors, as they represent a company’s performance and valuation by using the financial data. Similar to technical analysis, fundamental analysis has to be performed by using multiple fundamental indicators to draw a clearer image of company’s financial background.

For understanding more about MQ Trader Fundamental Analysis, please read MQ Trader – Fundamental Analysis [TOPGLOV].

MQ Trader Fundamental Chart

MQ Trader Fundamental Chart is a very versatile tool which enables users to access into the charts plotted in various modes in a single page:

  • Different fundamental indicators (i.e. Revenue, Profit, EPS, PE, DPS, DY, NAPS, ROE)
  • Different period (I.e. Quarter, Annual)
  • Different chart designs (I.e. Line, Bar)

To view MQ Trader Fundamental Chart, you can click onto "View Financial" from MQ Fundamental Rating page as shown in the figure below.

Figure 1: MQ Fundamental Rating of TOPGLOV

Figure 2: Features on Fundamental Chart 

Figure above shows the features that are available on MQ Trader Fundamental Chart. You can simply click on any fundamental indicators to view the charts accordingly. Besides, both annually and quarterly charts are switchable to each other to have a clearer image of the company’s growth. Line or bar charts are also provided to meet the preference of all users.

Figure 3: Annual revenue line chart of TOPGLOV

Figure 4: Annual revenue bar chart of TOPGLOV

The examples of the annual and quarter charts with different fundamental indicators will be demonstrated later in this post.

Fundamental indicators in MQ Trader system

MQ Trader has selected the 8 most relevant fundamental indicators which are useful in portraying the stocks’ performance in Malaysia’s stock market. First of all, we would like to introduce the 2 simplest fundamental indicators in this article:

  1. Revenue

Revenue is the amount of money that a company actually receives from its business activities during a specific time frame. Normally, you can find revenue as the top line or gross income figure where costs are deducted to obtain net income. It is also known as sales on the income statement.

Calculation of revenue:

Price of goods or services sold / the number of units sold

Figure 5: Quarter revenue of TOPGLOV.

Figure 6: Annual revenue of TOPGLOV.

Figure 5 and 6 show that the revenue of TOPGLOV is increasing over the years indicating that the sales of its products are improving in the long run.

To see the details, please proceed to TOPGLOV's Annual Revenue Chart.

2. Profit

Profit is a financial benefit that can be realized when there is a surplus obtained after the deduction of the expenses, costs and taxes from the amount of revenue gained from a business activity.

Calculation of profit:

Total revenue – Total expenses

Figure 7: Quarter profit of TOPGLOV

Figure 8: Annual profit of TOPGLOV

Figure 7 and 8 show that the profit of TOPGLOV is increasing over the years indicating that its profit increases proportionally with its revenue.

To see the details, please view TOPGLOV's Annual Profit Chart.

What are financial ratios?

Other than revenue and profit of a company, the rest of the financial indicators (6 of them) are financial ratios which also play important roles in measuring the performance of a company. To know more about financial ratios, kindly read MQ Trader – Fundamental Indicators [TOPGLOV] Part 2.

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 
Labels: TOPGLOV
  Be the first to like this.
 

MQ Trader – Fundamental Analysis [TOPGLOV]

Author: MQTrader Jesse   |  Publish date: Tue, 21 Aug 2018, 05:54 PM


Introduction

It is very common to hear the word “fundamentals” when we talk about stocks investment. Analysts and fund managers always mention how good the fundamental of a company is while some of the traders make an opposite claim that the fundamental of a company is not necessary and they make their investing decisions by relying on the technical analysis. In short, different individuals have different views on “fundamentals”.

You might be wondering what is “fundamental”. Is “fundamental” an important aspect to be considered in our investment? In our pervious posts, we focus much on technical analysis of a stock. Kindly read Introduction of MQ Trader Trading Strategies for more information. In this topic, we will be discussing more on the fundamental analysis of a stock.

What is fundamental analysis?

Fundamental pays more attention to a company’s financial statements which provide much information on the historical, current and future performance of a company. These data allows investors to evaluate the health of a company.

In fact, the price of a stock may not reflect the actual value of the stock, as the stock may be overvalued or undervalued in the market. Fundamental analysis plays an important role in determining the intrinsic value of a company to measure the worthiness of a stock.

MQ Trader Fundamental Analysis

Source: MQ Trader Stock Analysis System

MQ Fundamental analysis is provided by MQ Trader based on various qualitative and quantitative factors such as company’s revenues, profit margins, return of equity, earnings per share, dividend yield, dividend per share, net asset per share and other metrics. These financial metrics will be further explained in the next blog – MQ Trader – Fundamental Indicators [TOPGLOVE] (Part 1)

All the financial metrics are able to answer the questions such as:

  • Is the company’s revenue increasing?
  • Is the company able to earn a profit?
  • Is the company competitive enough to beat its competitors in the long run?
  • Can the company settle its debt?
  • Is the company’ stock good for investment?

Source: MQ Trader Stock Analysis System

MQ Trader Fundamental Rating

There is a key feature which is MQ Trader Fundamental Rating available in MQ Trader stock analysis system. This feature is very popular among the investors, as it reveals the overall performance of a company according to some fundamental tests set by MQ Trader. Fundamental analysis of a stock can be eased, as investors are able to evaluate the financial background of a company just in a glance before reviewing the details of the financial metrics.

Source: MQ Trader Stock Analysis System

According to MQ Trader fundamental criteria, a stock must achieve MQ Fundamental Rating > 2.5 before it is qualified to be suitable for long term investment. In order to reach this rating, a stock has to pass more than half of the fundamental tests set by MQ Trader. The requirements to pass these fundamental tests are carefully reviewed by MQ Trader to determine the performance of a company accurately and efficiently.

The figure above shows the MQ Fundamental Rating of TOPGLOV and it is generally a fundamentally good company, as it scores 4.1/5.0 which is a high MQ Fundamental Rating. Moreover, it passes 6 out of 8 fundamental tests as shown in its rating breakdown.

To know more about MQ Fundamental Tests, please proceed to MQ Trader – MQ Fundamental tests.

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 
Labels: TOPGLOV
  Bystander123 likes this.
 

MQ Trader – Adjusted Price [CCK, TIGER, TOPGLOV]

Author: MQTrader Jesse   |  Publish date: Fri, 17 Aug 2018, 06:06 PM


Introduction

In this article, we will proceed to show how does the adjusted price work on removing the effect of corporate actions to the share price by using MQ Trader Stock Analysis System. To read the first part of this topic, kindly visit MQ Trader - Introduction of Adjusted Price.

Adjusted Price for Stock Splits

In the previous blog post – MQ Trader – Introduction of Corporate Actions (Part 1), CCK was used as the example for demonstrating the effect when a stock split takes place.

Figure 1: Announcement of the stock splits on 30 May 2018

Figure 2: Original price of CCK

Figure 3: Adjusted price of CCK

Figure 2 indicates that there is a large gap down (50.25% fall in share price) between the share price on 8 Jun 2018 and 11 Jun 2018. After price adjustment has been applied, the share price of CCK remains constant showing that its share value is the same before and after the implementation of the stock split. Hence, panic selling can be avoided, as the adjusted share price is able to filter the false bearish signal caused by the stock split.

Adjusted Price for Consolidation

TIGER was used as the example for demonstrating the effect when a consolidation occurs in MQ Trader – Introduction of Corporate Actions (Part 1). This part is the continuation of the post which explain the impact of price adjustment on its technical chart.

Figure 4:  Announcement of the consolidation on 21 May 2018

Figure 5: Original price of TIGER

Figure 6: Adjusted price of TIGER

Figure 5 indicates that there is a large gap up (220% rise in share price) between the share price on 31 May 2018 and 1 Jun 2018. After price adjustment has been applied, the share price of TIGER is experiencing sideways trend showing that its share value remains the same before and after the implementation of the consolidation. Hence, oversold position can be avoided, as the adjusted share price is able to eliminate the false bullish signal due to the consolidation.

Adjusted Price for Bonus Issue

TOPGLOV was selected as the example for demonstrating the effect when a bonus issue is declared in MQ Trader – Introduction of Corporate Actions (Part 1). This part is the continuation of the post which explains the effect of price adjustment on its technical chart.

Figure 7:  Announcement of the bonus shares on 11 May 2016.

Figure 8: Original price of TOPGLOV

Figure 9: Adjusted price of TOPGLOV

Figure 8 shows that there is a large gap down (57.14% drop in share price) between the share price on 20 May 2016 and 21 May 2016. After price adjustment has been applied, the share price movement of TOPGLOV is smoothened and the existence of bearish trend after 21 May 2016 is purely caused by the strong selling momentum. Thus, misleading signal can be avoided, as the adjusted share price is able to eliminate the false bearish signal contributed by the bonus issue.

Conclusion

Adjusted price of a share is very essential in generating accurate trading signal based on the real price movement in our investment. However, please bear in mind that the adjusted historical price cannot be used as a reference for the actual buy or sell price for a stock at the particular period in the past. Therefore, both adjusted price and original price should be used for comparison, as they play important roles in providing useful information on the performance of a company and market sentiments.

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 
Labels: CCK, TIGER, TOPGLOV
  Be the first to like this.
 

MQ Trader – Adjusted Price in MQ Trader's Analysis Chart

Author: MQTrader Jesse   |  Publish date: Fri, 17 Aug 2018, 06:06 PM


Introduction

A corporation action affects the share price severely due to the inverse relationship between the amount supplied and price. The greater the amount supplied, the lower the price. The number of shares available in the stock market are scaled up or down based on the types of corporate actions implemented. The characteristics of each corporate action were discussed in our previous blogs – MQ Trader – Introduction of Corporate Actions (Part 1) and MQ Trader -  Introduction of Corporate Actions (Part 2).

The original share price is unable to reflect the performance of a company accurately when the bearish trend of an unadjusted chart is majorly contributed by the corporate actions which are neutral events. In this topic, we are going to introduce the adjusted price in MQ Trader technical charts which modifies the relevant data to eliminate the misleading information caused by the corporate actions.

Adjusted Price vs Original Price

  1. Adjusted Price: Stock prices will be amended to include any Dividends and corporate actions such as Bonus Issue, Share Split and Consolidation.
  2. Original Price: The historical stock prices that have been recorded without any amendments.

Source: MQ Trader Stock Analysis System

 

The importance of adjusted price

Price adjustment is useful in removing large gaps in share price caused by corporate actions such as splits, consolidations and bonus issue. It can help to counteract the remarkably huge impacts contributed by different corporate actions. Table 1 shows how corporate actions influence the amount of outstanding shares and the share price.

Table 1: The effects of corporation actions

Corporate Actions

Ratio

Number of Outstanding Shares

Share Price

Stock Splits

2-for-1

2 x n

p/2

Consolidations

1-for-2

n/2

2 x p

Bonus Issues

1-for-1

2 x n

p/2

Where n: initial number of outstanding shares, p: Initial share price

By using this function, all price movements of the shares will be based on the pure market forces. As a result, misleading trading signals can be prevented from appearing on the technical charts to avoid oversold or panic selling when investors are unaware for the declaration of any corporate action.

How does adjusted price work?

In the next blog post - MQ Trader - Adjusted Price [CCK, TIGER, TOPGLOV], we will be focussing on how the adjusted price influence the share price movement by using a few examples for demonstration purpose by using MQ Trader Stock Analysis System

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 
  Be the first to like this.
 

MQ Trader - Introduction of Corporate Actions (Part 2)

Author: MQTrader Jesse   |  Publish date: Tue, 14 Aug 2018, 05:34 PM


Introduction

This topic is the second part of our previous blog post – MQ Trader – Introduction of Corporate Actions (Part 1), so we are going to explain in details on the Voluntary Corporate Actions in this article.

What is Voluntary Corporate Action?

A voluntary corporate action is an action that depends on a decision from the investor on whether or not to participate in the action. These actions will not be applied to shareholders automatically unless the shareholders choose to take part in the actions. If shareholders prefer not to take the action, their securities will be unaffected by Corporate Action.

Right issues

A right issue is the right but obligation offered to existing shareholders to purchase additional shares at a discounted price which is lower than the current market price based on a specific ratio to their existing holdings. The existing shareholders are given an opportunity to grab advantages from a new promising development of the company.

Companies usually issue a right issue to raise additional capital while some of the companies use right issue to settle their liabilities and debts. Hence, it is important to read the news regarding to the purpose of the issuance of right issue before investors decide to subscribe for right issue of a company.

The impacts of right issues:

  1. Earnings per share (EPS) decreases as a result of share dilution
  2. The share price falls proportionally to the number of right issues
  3. Higher capital gains for shareholders if the extra capital is used for companies’ expansion.

Shareholders are allowed to trade the rights in the market until the listing of the newly purchased shares. This is an advantage of right issues, as they can help to compensate the current shareholders for the dilution of their existing shares value in the future.

Figures below show the right issue example of PWORTH which its ex-date is 18 July 2018. The share price fell sharply by 58.14% within a day. For more information, please read [PWORTH] Rights Issue on 06-Jul-2018. For viewing the technical chart, kindly visit PWORTH daily technical chart.

Buyback

A stock buyback is known as a share repurchase when a company buys its own outstanding shares to scale down the number of shares available on the stock market.  There are several reasons contributing to the implementation of a share buyback:

  1. Increasing the value of the remaining shares available when the supply of shares is cut down
  2. Avoiding dilution of control over the company
  3. It involves high cost of equity when the shareholders demand for returns in the form of dividends.
  4. Issuance of the buy back shares to the employees and management as a reward

Generally, companies can buy back their shares in a few ways as below:

  1. Shareholders might be given a tender offer where they have the option to submit or tender all or part of the shares within a given period at a premium to the current market price. This offer is able to compensate investors for tendering instead of holding the shares.
  2. Companies acquire the shares from shareholders through stock market within a specific period of time.

The effect of buybacks:

  • Short-term spike in the share price
  • Higher Earnings Per Share (EPS)
  • To maintain the market price from further drop

The figures below indicate the example of share buyback of MYEG on 16 May 2018 and 5 Jun 2018. The implementation of share buy back in this scenario has successfully prevented the share price from dropping seriously. For more information, please read [MYEG] Share Buyback (Immediate) on 05-Jun-2018 and [MYEG] Share Buyback (Immediate) on 16-May-2018. For viewing the technical chart, you can visit MYEG daily technical chart.

Conclusion

Share price increases or decreases sharply, but the value of the shares remains unchanged when corporate actions take place. Hence, it is important to be aware of the declaration of any corporate action to avoid oversold position or panic selling to happen. For knowing more on how to mitigate the effect of corporate actions on share price, please proceed to the next article – MQ Trader – Introduction of Adjusted Price.

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 
Labels: PWORTH, MYEG
  Be the first to like this.
 

MQ Trader - Introduction of Corporate Actions (Part 1)

Author: MQTrader Jesse   |  Publish date: Mon, 13 Aug 2018, 05:53 PM


What are corporate actions?

Corporate actions are the actions that initiate a process to bring impacts to the stocks and eventually the shareholders will get affected positively or negatively. It is important to understand the processes and effects of different types of corporate actions, as each corporate action reflects a company’s financial affairs. Besides, corporate actions can influence a company’s share price and performance aiding the investors to make decisions on buying or selling a stock. There are 2 types of corporate actions which are mandatory corporate actions and voluntary corporate actions.

 

 

 

 

Figure 1: Types of corporate actions

Mandatory Corporate action

Mandatory corporate action is an event approved by the board of directors that can affect all the shareholders who participate for these corporate actions mandatorily. The corporate actions listed below are examples of mandatory corporate action:

Stock Splits

A stock split is a decision by a company’s board of directors to dividing the outstanding shares, so as to issue more shares to the current shareholders. The main purpose of this action is to increase the liquidity of the share in the market.

For example, a shareholder will obtain an extra share for each share held when a 2-for-1 stock split takes place. If an individual has 10,000 shares outstanding before the split, he will hold 20,000 shares outstanding after the 2-for-1 split.

The effects of a stock split are:

  1. The drop in share price causes the stock to be more attractive to a wider range of investors
  2. Higher availability of the shares outstanding in the market leading to more interested investors have greater chances to own the shares

In short, the value of the stock will remain unchanged but the higher demand for the share will boost the share price and eventually increasing the company’s value and market capitalization in the long run.

Figures below show the stock split example of CCK which its ex-date is 11 Jun 2018. The share price fell sharply by 50.25% within a day. For more information, please read [CCK] Subdivision on 30-May-2018. for viewing the technical chart, kindly visit CCK daily technical chart

Consolidation / Reverse Stock Splits

A stock consolidation is the opposite of a stock split, as it is defined as a corporate action is used for reducing the amount of a company’s outstanding shares. At the meantime, the price of the share will increase proportionally, as the value of the share remains the same.

For example, if a shareholder owns 200,000 shares before the 1-for-10 consolidation takes place, the 200,000 shares will be divided by 10 into 20,000 shares after the implementation of 1-for-10 consolidation.

The impacts of consolidation:

  1. The minimum bid price of a stock is fulfilled for listing in the stock market.
  2. The lower availability of the stocks causes the stocks are harder to be borrowed for short selling
  3. Limited liquidity of the share widens the bid-ask spread

Figures below show the consolidation example of TIGER which its ex-date is 1 Jun 2018. The share price increased sharply by 220% within a day. For more information, please read [TIGER] Share Consolidation on 21-May-2018. for viewing the technical chart, kindly visit TIGER daily technical chart

Divi​dend and Bonus Share

A dividend is a distribution of a portion of a company’s income to shareholders while a bonus share is an offer of free additional shares to existing shareholders based on the decision of the board of directors. Dividends are normally given in the forms of cash payment. It takes place monthly or quarterly and special dividends are issued individually or simultaneously together with a scheduled dividend. The equity of a company is influenced after the declaration of a dividend, as the distributable equity will be reduced.

For examples, shareholders who are entitled with cash dividend of RM 0.50 per share, they will receive RM 50 if they hold 100 shares. On the other hand, shareholders receives an additional share for every 10 shares owned when a bonus share of 10% is declared.

The effects of dividends:

  1. An indication of a high performing company that can develop the confidence and interest of more investors
  2. The share price usually declines linearly with the level of dividend paid per shares in the short term

The figure below is the example of TOPGLOV's bonus share which is ex-date is on 21 Jan 2016. Accirding to this Figure, its share price drop sharply by 57.14% within 1 day. For more information, please read [TOPGLOV] Bonus Issue on 11-Jan-2016. For viewing the technical chart, you can visit TOPGLOV daily technical chart

 

Mergers and Acquisitions

A merger occurs due to the combination of two or more companies into a single company when all related parties agree to the terms of the merge. This action usually takes place due to the surrendering of stocks by a company to another which has the greater ability and confidence to control more companies.

The impact of a merger:

  1. The target company’s stock price rises, as the acquiring company has to pay premium for the acquisition
  2. The acquiring company’s share price drop during the acquisition because large amount of cash is used for acquisition

Conclusion

It is essential for an investor to understand various types of corporate actions to make a wise decision in the investment. In the next blog - MQ Trader - Introduction of Corporate Actions (Part 2), we will be sharing the details of the voluntary corporate actions.  

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 

 

 

Labels: TOPGLOV, TIGER
  2 people like this.
 
Tiong Kung King Zien Tiger con family
09/09/2018 04:24
Tiong Kung King Zien This a big con company
09/09/2018 04:25

MQ Trader – Volume Screener

Author: MQTrader Jesse   |  Publish date: Fri, 10 Aug 2018, 11:53 PM


Introduction

In this blog, we will be explaining on how to use MQ Trader Volume Screener which is introduced in our last post – MQ Trader – Indicators of Volume Screener. This blog will cover the demonstration of using the MQ Trader Volume Screener to filter stocks with high trading volume.

To read the introduction of MQ Trader Stock Screener, please visit MQ Trader - How to pick a stock?

Simple yet powerful

MQ Trader Volume screener is the simplest screener to be understood as compared to MQ Trader Technical Screener and Fundamental Screener, as it does not require exotic mathematical formulas by involving only one type of indicator which is Volume Moving Average (VMA).

Volume does not provide trading signals directly to traders but it is a very important indicator which can be seen on every single technical chart. It is widely utilized by investors for decades because it is able to help traders on confirming a market turnaround or trend reversal by determining whether the price movement is proportional to the volume momentum.

A stock with good rating in its technical analysis is not always the best stock for us to enter our position if it does not possess strong volume. Meanwhile, a high trading volume does not contribute to the emergence of a bullish trend all the time but it can lead a bearish trend sometimes. 

In this article, we will be explaining on how to combine volume and technical screener to identify bullish stocks with high trading volume.

Technical Screener for bullish stocks

In our previous post, we shared some examples on how to look for up-trending / bullish stocks from MQ Trader Technical Screener. Please visit MQ Trader – Technical Screener for Up-trending Stocks for more information.

Table 1: Technical filters’ setting for bullish stocks

Technical indicators

Bollinger Band

Price above Bollinger Band

ADX Filter

+DMI above –DMI & ADX above 25 (Strong Trend)

OBV

Above by 50%

EMA

5-day EMA

EMA 5 above EMA 20

 

Volume Screener for stocks with high trading volume

Shorter-term investors always look for opportunities within a short period, so VMA of lesser days will serve as shorter-term investors’ main indicators to determine the trading volume of a stock. The criteria below is used to screen for bullish stocks with high trading volume for short term investment based on MQ Trader trading strategies:

  • 10-day Average Volume (VMA 10): VMA 10 above VMA 20

Then, a list of stocks that match these criteria appears within a few seconds on 10 August 2018 as shown as below:

Source: MQ Trader Stock Analysis System

Next, we will be picking one of the stocks - KRETAM for demonstration purpose.

Screening Technical Chart

Figure below shows that KRETAM is currently experiencing high trading volume which exceeds 7 million in a day. This shows that it is actively traded in the stock market at the moment.

Source: MQ Trader Stock Analysis System

Figure 1: EMA 5 Crossover Hourly Chart of KRETAM

Figure 1 shows that KRETAM meets all the requirements that we set indicating that it is undergoing bullish as well as having high trading volume. The continuous high buying volume indicates that the share price will be ongoing the bullish trend on the following day. Besides, there is buy signal observed on 9 August 2018 showing that the share price will continue to rise in the near term. Hence, it is a good opportunity which we can enter and hold this counter before sell signal or any sign of trend reversal take place.

Conclusion

As compared to the stocks that are filtered in MQ Trader – Technical Screener for Up-trending stocks, coupling technical screener with volume screener can effectively eliminate pennies stocks which their share price can be easily manipulated by traders. By trading stocks that are actively traded, liquidity of a stock can be enhanced to prevent us from trapping our capitals in the stocks with low trading volume.

Longer-term investors who put high priority on fundamental analysis, can refer to MQ Trader – Fundamental Screener to learn how to use MQ Trader fundamental screener. Screening stocks by combining all these three screeners (Technical, Fundamental and Volume) can also be done by using MQ Trader Combined Screener.

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 
 
Labels: KRETAM
  huat021 likes this.
 

MQ Trader Workshop - Trade Signal With MQ Trader [Free Registration!]

Author: MQTrader Jesse   |  Publish date: Wed, 8 Aug 2018, 10:18 PM


Looking for opportunities in investment is not hard if we know how to study and analyse the company’s financial reports and technical charts. However, humans tend to be emotional easily especially when proper judgement and wise decision have to be made in stocks market. Besides, humans always have limitations on time and ability to process the data from the financial reports.
 
MQ Trader system is an artificial intelligence stock analysis system which can empower general investors to be able to perform stock analysis based on quantitative calculations on Technical and Financial number of stocks. To know more about MQ Trader, kindly visit [MQ Trader] Introducing Malaysia's Quantitative Traders Group.
 
We will organise several workshops throughout Malaysia to explain in details on the functions of MQ Trader Stock Analysis system, so as to teach those who are interested in these workshops on “how to fish instead of getting fish from others”. Thus, the first stop for our workshop will be conducted at Kuantan and the workshop details are stated below:
 

Workshop details

TitleTrade Signal With MQ Trader
Date: 11 August 2018
Time: 7.30pm
Location: The Zenith Hotel, Kuantan
 
Please visit MQ Trader Event for more information.
 
The topics that we will cover in this workshop:
•    How to use the highlighted features in MQ Trader system
•    How to find trading opportunities on MQ Trader System
•    How to use MQ Trader Trading Strategy to confirm for buy/sell signals
 
You are welcome to bring your friends or family members along.
Opening trading account under MQ Trader group will also be available on the event.
 
Here are the documents required for account opening:
•    NRIC (front & back)
•    Bank statement (1 month) / Bank Book
 

Join us now!

Join our MQ Trader FREE Workshop now by filling up the Registration Form to reserve your seats!
 

Contact us

 
Call/SMS: +6010 222 8313 (Alex), +6012 682 2313 (Cindy), +6010 900 8313 (Jesse)
Telegram: https://telegram.me/MplusOnline
Email: alex@mqtrader.com 
  Be the first to like this.
 

MQ Trader – Indicators of Volume Screener

Author: MQTrader Jesse   |  Publish date: Wed, 8 Aug 2018, 06:46 PM


Introduction

This article is mainly focusing on MQ Trader Volume Screener which is continuing the last topic that we posted. For understanding more on this topic, kindly read MQ Trader – How to pick a stock?

What is Volume in Stocks?

Volume is the total amount of contracts that are traded successfully within a given period of time.  Each transaction contributes to one trading volume where one successful transaction is made when buyers agree to sell the shares to sellers at a certain price. Thus, the trading volume will be high when there are a lot of buyers and sellers trading the stocks at a particular price.

How does Volume affect stock price?

Volume plays a vital role in confirming the strength of the current trend and measuring probability of a trend reversal. The higher the volume when the share price changes, the greater the movement of the share price. Volume tends to affect share price a lot because a stock price is determined by the supply and demand in the market. The share price will increase tremendously when many traders are interested to own the shares and vice versa.

What is MQ Trader Volume Screener?

Volume screener is very useful for detecting high volume in a stock trading that may indicate a reversal of a trend from sideways or downtrend to uptrend. MQ Trader Volume Screener is launched to fit the requirement Malaysia’s traders in identifying the market liquidity, price volatility and trading momentum efficiently.

Source: MQ Trader Stock Analysis System

 

Volume Indicators

There are a few volume indicators included in MQ Trader Volume Screener:

  1. Volume Moving Average (VMA)
  • VMA 10
  • VMA 20
  • VMA 60
  • VMA 90
  • VMA 150
  • VMA 200
  1. Price – to filter out pennies stocks
  2. Stamp Duty Exempted (mids)
  3. Intraday Short Selling (IDSS)

What is Volume Moving Average (VMA)?

The core indicator that is used in MQ Trader Volume Screener is Volume Moving Average (VMA) which is similar to simple moving average. VMA is the average amount of individual securities traded over a specified amount of time. It has a smoothing effect on short-term volume spikes, so VMA with longer period will tend to smooth out volume spikes more effectively. Thus, Longer-term VMAs tend to detect the trend reversal slower than shorter-term VMAs.

Calculation of VMA:

VMA = (Sum of N volume bars) / N

Multiple VMAs (2 or more VMAs) can be used to compare their trends with each other to recognize the period when the trading volume of a stock is below or above its longer term average volume. This technique allows us to detect abnormal trading activity due to panic selling or greedy buying which are the main factors to contribute to downtrends or uptrends respectively.

Conclusion

Volume of a stock should be taken into consideration for making decision in our investment, as it represents the level of interest of traders in a security. Besides, volume is also able to confirm the price trends, breakouts and potential reversals which can enhance the technical analysis of a stock by using volume screener. To learn more about MQ Trader Volume Screener, you can read MQ Trader – Volume Screener.

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 
 
 
  adihasrul likes this.
 

MQ Trader – Fundamental Screener

Author: MQTrader Jesse   |  Publish date: Tue, 7 Aug 2018, 05:54 PM


Introduction

Fundamental analysis of a stock plays an important role for picking stocks for long term investment. In this article, we will be focusing on the key features of MQ Trader Fundamental Screener. This article is the continuation of the previous post, kindly read MQ Trader – How to pick a stock? for a better understanding.

What is Fundamental Screener?

A fundamental screener serves as a popular framework to investigate investment tips in an organized and systematic way. It can provide an initial impression of a company and its prospects. Generally, fundamental screeners focus on criteria like a company’s financial growth, income and revenues to determine whether the company possesses qualities for long term investment.

MQ Trader Fundamental Screener is a stock screener that is designed for filtering the stocks in Malaysia stock market based on fundamental analysis. There are some key metrics which are available in this screener, are explained in details at MQ Trader – Variables of Fundamental Screener.

Source: MQ Trader Stock Analysis System

Screen categories

The hardest part of deciding what to invest is actually deciding what criteria that traders want to consider in a company. The set of criteria can be customized based on the type of trading or investment that we perform. Longer-term investors which focus primarily on fundamental analysis can be divided into a few categories:

Category of investing

Type of stocks

Value investing

  • Place a higher priority on whether current stock price is proportional to the health of a company
  • Seek profits from those undervalued stocks neglected by the market
  • One of the examples for value investor is Josef Piotroski

Growth investing

  • Put higher priority on the future prospects of a particular company
  • Pick stocks that are undergoing growth stage of their life cycle where high rate of expansion in sales take place.
  • One of the famous growth investors in Peter Lynch

Income investing

  • Generate gains mainly from dividend income instead of capital growth
  • Michael B. O’Higgins applied this trading strategy

Bargain Investing

  • Identify market mispricings of extremely out of favour stocks
  • One of the famous bargain investor is Walter Schloss

Quality investing

  • Select the companies with high return of equity that will continue to outerperform
  • Buffett Hagstorm practised this investing style

Short Selling

  • A high risk investment focusing on overvalued or fragile companies by gaining profits when the share price falls

What to filter?

Different trading approaches possess risks at various levels, so it is very important for traders to understand in depth on the risk management and the rate of return of the investment approach that we are using.

There are several considerations which have to be taken before deciding what kind of screening that traders want to obey:

  • The time taken for the profits to be earned
  • The risk tolerance and needs of traders
  • The suitability of the investing styles to the current stock market condition (bullish, sideways or bearish)
  • The frequency of the list qualified stocks to change
  • The amount of investing capital required

Conclusion

Stocks screening is an initial step of investment to help traders to narrow down the stocks that meet your expectations and requirement efficiently on making a wise decision in stock investment. However, it is neither a substitute for independent research on the stocks nor buy list of the stocks. Further study on the financial background stocks has to be done before we start our investment.  For knowing more on how to use MQ Trader Fundamental Analysis System, you can read Introduction to MQ Trader Trading Strategies.

Technical screener and volume screener can help traders to determine the entry share price as well as the trading volume of the stocks respectively. They are also available in MQ Trader Stock Analysis System. If you are interested to know more, please visit MQ Trader – Technical Screener for Up-trending stocks and MQ Trader – Technical Screener for Down-trending stocks, MQ Trader - Volume Screener.

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

More features will be released soon. Stay tuned!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 
 

 

  Bystander123 likes this.
 
Bystander123 thank you Jesse ! for your MQTrader info blog, very educational, look forward to your continual sharing.
07/08/2018 20:26
hstha Apple wants iPhone to be proof of identity and replace passports. https://appleinsider.com/articles/18/08/09/apple-wants-iphone-to-be-proof-of-identity-and-replace-passports
09/08/2018 23:34

MQ Trader – Variables of Fundamental Screener

Author: MQTrader Jesse   |  Publish date: Tue, 7 Aug 2018, 05:53 PM


Introduction

In this blog, we will be focusing on the features of each variable in MQ Trader Fundamental Screener. If you would like to know more about MQ Trader Fundamental Screener, kindly read MQ Trader- Fundamental Screener.

Fundamental Indicators

  1. Price Earnings Ratio (PE)

The price-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings. The value of this indicator can determine whether the stock is currently undervalued.

The calculation for PE ratio:

Market Value per Share / Earnings per Share

Anything with a P/E over 15 looks unattractive based on price. The only exception that we allow to our P/E rule is for growth stocks with consistent records of rising earnings. If a company's earnings are advancing faster than the market average, it can command a higher-than-average price/earnings ratio.

 

  1. Earnings per share

Earnings per share (EPS) are the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serve as an indicator of a company's profitability. EPS is calculated as:

EPS = (Net Income - Dividends on Preferred Stock) / Average Outstanding Shares

 

  1. Dividend Yield

Dividend yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price. It is represented in percentage which measures the return on investment for a stock.

Calculation of Dividend Yield:

 

  1. Net Asset per Share (NAPS)

Net Asset per Share (NAPS) is known as the book value per share which is an expression for net asset value that represents the value per share of a mutual fund, exchange-traded fund (ETF) or a closed-end fund. If NAPS is higher than the share price, then the share will be considered as undervalued, as it means that the stock is traded at a cheaper price than its actual value. 

Calculation of NAPS:

NAVPS = Net Asset Value (NAV) / Number of Shares Outstanding

where NAV = Assets – Liabilities

 

  1. Return in Equity (ROE)

Return on Equity (ROE) measures a company's profitability by revealing how much profit a company generates with the money shareholders have invested. A positive ROE means the shareholder's value have increased over time. The higher the return on equity, the more efficient the company's operations are making use of those funds.

Calculation of ROE:

Return on Equity = Net Income/Shareholder's Equity

Price

  • Stocks with certain price range according to our affordability can be screened.
  • Penny stocks can be filtered out

Stamp Duty Exempted (Mids)

Stamp duty on shares of mid and small cap companies is waived for three (3) years from 1 March 2018 to 28 February 2022. For stamp duty exemption in 2018, eligible mid and small cap companies are those with market capitalisation between RM200 million and RM2 billion as at 31 December 2017.

Intraday Short Selling (IDSS)

This variable provides a list of stocks which are available for IDSS. To know more about IDSS, please read What is intraday short selling?

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

Join us now!

MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

Contact us

Please do not hesitate to contact us if you have any enquiry:

Email: admin@mqtrader.com 
 
 
  Be the first to like this.
 


 

242  253  540  1143 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 SAPNRG 0.445+0.015 
 REACH-WA 0.10+0.01 
 D&O 0.755+0.015 
 HIBISCS 1.03+0.02 
 VC 0.085+0.005 
 QES 0.320.00 
 HSI-H4O 0.47-0.005 
 MYEG 1.77+0.02 
 VELESTO 0.275-0.005 
 REACH 0.405+0.01 

TOP ARTICLES

1. 【冷眼专栏】什么人应投资股票? 【冷眼专栏】全民拥股
2. 销售再破新高.QES涨声不断 星洲日報/投資致富‧企業故事
3. 不打价格战.SCGM转型求成长 星洲日報/投資致富‧企業故事
4. StockAlliance - KTC " the top-tier CPG Distributor" in East Malaysia StockAlliance Smells Of Money
5. Stocks on Radar - MyEG Services AmInvest Research Reports
Partners & Brokers