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keejang
Veteran |
27-May-2006 13:59
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Hi Sporeguy, A word of caution - stocks which are have low transactions can be hard to buy into or get rid of. This low liquidity means that you may find difficulty buying or selling the stock at your target price. The rule of thumb which I find works well for me is > 2000 lots per day. Have a great weekend! Kee Jang  |
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Sporeguy
Elite |
27-May-2006 11:54
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Hi Keejang, Thanks, almost exactly like what I have experimented. I think using Moving Average 14 will be easier to see. So the divergence in COMAT is a sign for buying, but one pitfall is that the transaction is low, <500 lots per day. Thanks again. PS. jesnigel mentioned about Williams %R with a 14 day period. I will expt with it when I am free. |
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keejang
Veteran |
27-May-2006 07:37
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Hi Sporeguy, I use the AD chart together with the Bar Chart. When people mention divergence, they usually refer to the technical indicator with the actual price trend of the stock. Using ShareJunction charts, I usually set the top chart to the AD and the bottom one to the Bar Chart. I extracted this from our Quick Reference Guide (the PDF downloads are found on our Research Page) - A buy signal is obtained with by falling stock prices and a rising AD (also known as divergence). Conversely, a selling signal is obtained with by rising prices and a falling AD (also known as convergence). I hope I have been helpful to you! Kee Jang |
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keejang
Veteran |
27-May-2006 07:28
Yells: "Me Me" |
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Hi jesnigel, I use Williams %R with a 14 day period. Like you mentioned, because of the shorter time period, it is more sensitive to price changes or "noise". But I like it that way because the sensitivity allows me to react faster to trend changes. I also sometimes use Williams 1.28 rule to double confirm the oversold/overbought conditions. Just a digression - I really think the Williams 1.28 rule works in a stable market environment. Accumulation/Distribution and Williams %R works very well together. So I do not recieve false signals often. But when it does happen, I pull out of the stock immediately. That's why I like highly liquid stocks. They are easier to get rid of. Hope this helps! Kee Jang |
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Sporeguy
Elite |
27-May-2006 00:20
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Hi Keejang, I expt using ShareJunction Chart for Comat with the AD chart on top and MA14 below, the AD and MA14 curves seem to diverge. So is Comat shows sign of accumulating ? |
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Sporeguy
Elite |
26-May-2006 23:32
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Hi Keejang, I am very new to this website. When u mention divergence in Accumulation/Distribution Chart, I am not sure divergence from what ? Is it with AD Chart on top and the price chart below or there are way round ? If it is not with the price chart trend, then what chart ? Sorry, very new to AD chart. |
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jesnigel
Member |
26-May-2006 22:03
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Hi Keejang, I generally agree with your trend of thought. I myself use ADX as well as William%R to arrive at a market trend. They work very well together. Btw, how many days period do u use for the William%R? I use 35 and it smooth out a lot of "noise". cheers |
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keejang
Veteran |
26-May-2006 20:41
Yells: "Me Me" |
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Hi mamasan, You're right! Haha... many people have told me that about my name. Its the name of a van in Indonesia. And I think its also what a deer is called! Kee Jang |
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keejang
Veteran |
26-May-2006 20:39
Yells: "Me Me" |
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Hi raizen71, Thats a very good point you've made. Its true that the TA indicators are technically lagging indicators and I believe technicians are aware of this. You're also right that in this IT age, information travels widely and quickly. However, I believe that in the IT age, its precisely because of this rapid transmission of information that the movers and shakers of the investing world get this information much faster than the lay investor and therefore react much faster to it. By the time the lay investor gets hold of the information, the market would already have changed direction. Thats why I do not really bother to read financial newspapers sometimes. It doesn't matter because by the time it comes into print, the market has already changed direction. TA, although lagging, helps me to identify the general direction of trend and let me guage the probability of a profitable trade. Trends basically tell me the market sentiment - whether bullish, bearish or uncertain. Sometimes, the TA indicators (especially the Accumulation/Distribution Chart) tell me that something is brewing because a divergence starts to form even when the stock price do not change that much. Often, when these signals form, a newspaper article highlighting some bullish news about the stock would emerge after a few days. In this aspect, the TA signals actually act as LEADING signals! This strange phenomenon occurs because the movers and shakers are quietly positioning themselves for the uptrend in price before the rest of us gets the news. Hope this helps! Kee Jang |
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raizen71
Member |
26-May-2006 19:30
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Hi Keejang, Happy to know that u have been making consistent efforts by doing TA, but i always hear people saying that TA are lagging indicators and not leading indicators. Investors and traders used to predict the price trends by doing TA during the pre-internet world since that was the only means. However, going into information age, information on companies and the market are abundantly available. As a technician yourself, how do you think about this perception. Appreciate you can shed some light. Thanks. |
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mamasan
Member |
26-May-2006 18:29
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ba xian guo hai, ge xian shen tong.. eight immortals crossing the sea, with own unique talents. |
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mamasan
Member |
26-May-2006 18:24
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kijang is a toyota van, popular in Brunei and Indonesia, terrorists used it to caary bombs.. |
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keejang
Veteran |
26-May-2006 10:33
Yells: "Me Me" |
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Hi lewsh88, You're definitely a very experienced stock investor if you've been investing for 20 years! Thanks for sharing your knowledge. I agree with your quote - "When you invest, go in with money you can afford to lose." I guess one way to be truly objective and not emotional about investing is to invest only when you can afford to lose. If you have too much at stake, you will tend to be overly anxious and this will lead to mistakes. I am still learning about investing everyday and I hope to learn more from all of you! ShareJunction was created for this purpose - to allow everyone to share their knowledge, skills and tips about investing. Have a great weekend! Kee Jang |
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lewsh88
Senior |
26-May-2006 10:04
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Hi Kee Jang: Thanks for those four wonderful tips. As a novice player dabbling in stocks for the past twenty years, I have been fortunate enough not to lose money in local stocks. I also followed another golden rule someone said: "When you invest, go in with money you can afford to lose." |
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scotty
Senior |
26-May-2006 07:22
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keep up the good work! |
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keejang
Veteran |
25-May-2006 21:37
Yells: "Me Me" |
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Hello Everyone, First of all, let me thank everyone for your support of ShareJunction. We, at ShareJunction are very happy and flattered by the positive response we've been getting from Singaporeans. It really means a lot to us that our work is appreciated by everyone. Haha... thanks to Nostradamus for the invitation to talk about my TA technique. Well, I'm a fan of Larry Williams and I subscribe to most of his methods. Basically, I mostly use these TA indicators in this particular order: (A) Accumulation/Distribution - to find divergences (B) RSI - to confirm the divergence in (A) (C) Williams %R - to look for oversold/overbought conditions (D) Bollinger Bands - to check if explosive price reversals are imminent (E) Williams 1.28 rule - to look for price reversals to confirm (D) I will only buy when: (1) There's a divergence (2) RSI is uptrending (3) Williams %R is either oversold or neutral and heading towards overbought region I treat (D) and (E) as good to haves, but not must-haves. If they are in agreement with a price uptrend, it just increases the probability of a profitable trade. Other rules I adhere to: (1) I only buy stocks that are between $2 and $4. (2) I only buy stocks that have average volume greater than 2,000,000 per day so it ensures that I can get in and out of market quickly (3) I have a stop at about 5% of the last price peak. So if a stock suddenly falls to 95% of its last peak, I will sell immediately (4) I only execute trades after 4pm everyday - something Larry Williams strongly adheres to. Because of these strict rules, I buy and sell within 2-3 weeks and I find that my money is usually out of the stock market about 80% of the time. I think this is a good thing because I believe that as long as your money is in the stock market, its at the mercy of market forces and your financial risk increases. Cheers! Kee Jang |
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Nostradamus
Supreme |
25-May-2006 21:05
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Read from the Sunday Times that ShareJunction's Mr Ngiam Kee Jang has about 70% profitable trades using TA. Care to share your TA on profitable stocks? With your 70% success rate, I'm sure many forummers would like to know if you can recommend some stocks. Thanks. |
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