Koon yew Yin
Introduction
First I must tell you that I am not a professional Chartist and I only use the chart to help me make decision to buy, hold or sell.
The two methods commonly used to analyze securities and make investment decisions are fundamental analysis and technical analysis. Fundamental analysis involves analyzing the characteristics of a company in order to estimate its value. Technical analysis takes a completely different approach; it doesn't care one bit about the "value" of a company. Chartists are only interested in the price movements in the market.
Despite all the fancy and exotic tools it employs, technical analysis really just studies supply and demand in a market in an attempt to determine what direction, or trend, will continue in the future. In other words, technical analysis attempts to understand the emotions in the market by studying the market itself, as opposed to its components. If you understand the benefits and limitations of technical analysis, it can give you a new set of tools or skills that will enable you to be a better trader or investor.
You can use technical analysis to:
1. Identify profitable stock patterns
2. Minimize your risk
3. Maximize your return in up and down markets
You’ll learn how to make big money on stocks using a technical analysis toolkit that has been wielded successfully for hundreds of years. That’s no exaggeration.
That makes these patterns some of the most time-tested strategies in finance. You can feel secure that you are trusting your investments to a highly refined system – not a new craze or an analyst’s hunch.
There are hundreds of patterns in stock charts that traders can look for, but I will only tell what is most trusted and reliable.
The Symmetrical Triangle: A Reliable Workhorse
You’ll recognize the symmetrical triangle pattern when you see a stock’s price vacillating up and down and converging towards a single point. Its back and forth oscillations will become smaller and smaller until the stock reaches a critical price, breaks out of the pattern, and moves drastically up or down.
The symmetrical triangle pattern is formed when investors are unsure of a stock’s value. Once the pattern is broken, investors jump on the bandwagon, shooting the stock price north or south.
Symmetrical Triangle Pattern
To form your symmetrical triangle pattern, draw two converging trendlines that bound the high and low prices. Your trendlines should form (you guessed it) a symmetrical triangle, lying on its side.
How to Profit from Symmetrical Triangles
Symmetrical triangles are very reliable. You can profit from upwards or downwards breakouts. You’ll learn more about how to earn from downtrends when we talk about maximizing profits.
If you see a symmetrical triangle forming, watch it closely. The sooner you catch the breakout, the more money you stand to make.
Watch For:
Sideways movement, a period of rest, before the breakout.
Price of the asset traveling between two converging trendlines.
Breakout ¾ of the way to the apex.
Set Your Target Price:
As with all patterns, knowing when to get out is as important as knowing when to get in. Your target price is the safest time to sell, even if it looks like the trend may be continuing.
For symmetrical triangles, sell your stock at a target price of:
Entry price plus the pattern’s height for an upward breakout.
Entry price minus the pattern’s height for a downward breakout.
Note: As this article is getting too long, I will post another article on how I use chart later.
Created by Koon Yew Yin | May 13, 2024
Eversendai Corporation Berhad recently reported its earnings results for the fourth quarter ended December 31, 2023. Here are the key financial highlights:
Created by Koon Yew Yin | May 06, 2024
Eversendai Corporation Berhad made a remarkable comeback in FY2023, reporting strong profit growth. Here are the key highlights from their financial performance:
Created by Koon Yew Yin | Apr 30, 2024
As shown on the chart below, Sendai has been dropping in the last few days. Today all shareholders must be wondering to sell, hold on or to buy some at a cheaper price.
Created by Koon Yew Yin | Apr 22, 2024
Eversendai Corporation Berhad made a remarkable comeback in FY2023, reporting strong profit growth. Here are the key highlights from their financial performance:
Created by Koon Yew Yin | Apr 22, 2024
Sendai price chart below is showing its price trend reversal. It is hitting a record high.
Created by Koon Yew Yin | Apr 18, 2024
After the stock closed yesterday, KSL announced its 4th quarter EPS which is 40.76 sen and its net tangible asset (NTA) backing of Rm 3.65. Its profit increased by 230% more than last year.
Created by Koon Yew Yin | Mar 29, 2024
Currently Sabah Government does not know that solar panel produces the cheapest electricity???
Created by Koon Yew Yin | Mar 23, 2024
During my life time I saw every Prime Minister being replaced by another politician for one reason or another. Dr Mahathir managed to stay the longest time of 22 years.
Created by Koon Yew Yin | Mar 04, 2024
All property developers have just announced their annual profit for 2023. All of them reported increased profit.
Created by Koon Yew Yin | Mar 04, 2024
Although my writing of this article sounds boastful but I feel that it is important to keep this record for posterity. Engineers play a pivotal role in shaping our modern world.
Wow uncle koon this is one article that impress me most. It is heartening to see a successful fundamental investor having an open mind to absorb technical info. Maybe I should also start writing about what learn about technical !
Well done (100 times !!!)
2014-04-29 07:20
Thank you very much Mr Koon for sharing this. Very valuable for beginners like me.
2014-04-29 08:33
CheongKOK, I cannot find BDB, is it a listed company? If I cannot find it easily, how do you expect investors to buy it? I am not interested any more. I do not wish to waste my time
2014-04-29 19:03
total debt (340 million) > revenue (280 million), though most debt is long term
Bina Darulaman Berhad (BDB) is Malaysia-based company engaged in investment holding, provision of management services, oil palm plantation and property development. The Company, through its subsidiaries, operates in five segments: property development, which include the development of residential and commercial properties; quarrying and road paving work, which is engaged as granite quarry operator and civil engineering contractor; construction, which is engaged as building and general contractor; operation of golf resort and hotel, on which it owns a golf resort and operates a hotel, and trading of consumables. The Company's subsidiaries are Kedah Holdings Sdn. Bhd., BDB Construction Sdn. Bhd., BDB Quarry Sdn. Bhd., BDB Hotels Sdn. Bhd., Daraluman Asset Sdn. Bhd., Jitra Waterworld Sdn. Bhd., BDB Trading Sdn Bhd., and PT Darulaman.
2014-04-29 20:40
Uncle Koon, can you please advice on L&G stock. I am new to stock trading and had brought quite a lot on this stock a few days ago. Thanks you.
2014-04-29 21:11
Good video clips on Value Growth Investing. Also talked and briefly discussed were the Technical Analysis. 1. http://www.youtube.com/watch?v=8Ul0ciJOUvY 2. http://www.youtube.com/watch?v=lFcFE_jXy3c
2014-04-29 23:26
As I observe Gmutual and Mkland has form Symmetrical Triangles. Both are properties stock.
2014-04-30 10:27
nsk82
live to learn, bravo Uncle Koon :)
2014-04-28 22:18