Daniel loh 2

For OCTOBER 2014.. be careful. . Due to US stock market earnings

How to know got big players inside?

1. Price Surge

2. Volume shows big players are in

- Relative volume
- up day volume higher than down day volume

3. Price consolidation is stable without coming back to cost price

- cost price defined as the point where the price first cheong

(Stick WE holdings pic)

- I. E. It needs to rest on a "support" and not on a falling knife..

- because it means big players are not exiting and holding..

- some stock like WE holdings. . Big players are holding.. while stock like Biosensor ..BBs go in and out fast..

4. Volume shows accumulation

- if up day volume is higher than the one day before and one day after down day..it is considered high..there is accumulation..

****blumont case study :

- when I see volume of down day is higher than the up day...

E.g. in OCT 2 down day volume is higher than previous 2 weeks up day!!!!!!!!!!!

(Stick pic here)

- hence..this is the key of penny stocks volume play..

Relative volunr

Step 5 : WAIT!

-cause big boy to scare away retailers may force price down for a while..

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Best type of stocks : Small and Mid cap stocks. .

Reason : if big cap like SIA .. got too many institutions buying and selling..

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How do I know if a stock still has strength on breakout

1. 3 day go up or 4 out of 5 days go up
2. 10 day MA going up

Key : if price do not move after breakout for 3 days.. SELL!!!!

Good habit. . Always use Trailing stop loss!

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Remember : DOJI is a down day....

Hence.. if I see Doji with high volume. .time to RUN!

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Penny stocks

1. Must monitor intra day volume. ..
2. See at 445pm