Wednesday, January 28, 2015

Scoring a supply and demand zone

Strongest to weakest demand (opposite for supply)

1. Origin that broke monthly supply

2. CP that broke supply

3. origin that broke same timeframe trendline (good WoW)

4. CP that broke same timeframe trendline (maybe good WoW)

Saturday, January 17, 2015

Giants. .what are giant?

Index is a giant!

Oil is a giant!

Why? Because while stock can go zero. . Index and oil cannot!

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For stock..

1. See EPS and ROE pattern
2. Went through 2008 and 2009
3. How did it perform during euro crisis?

For strong stock like VI COM or roxy pacific.. how to sell and buy? Esp sell use index to guide us..

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If you are long term investor... look at both high optimism and fresh SZ on monthly to sell

If you are short term may just look at SZ

Danger of high optimism and "waiting" for low optimism

When stock or index is high optimism..

More than 75 percent
Less than 25 percent..

We just waiting for a news..a bad news to push the price down from optimism and good news to bring up the price a lot..

Thursday, January 15, 2015

My trading plan

1. Nested and Realignment - Momentum plus location

2. Momentum with the trend

3. Harmonics with higher TF monthly and weekly trend  (If daily).  Minimum monthly uptrend and weekly not downtrend

4. Valid WoW trades ***

5. Valid BO trades

Aim - to trade like a robot.. Trade with the rules .. no trying to "think"

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Scenarios I will not trade

1. Hit fresh HTF monthly or weekly supply

2. Hit monthly EMA 20

3. Hit monthly TL,  especially if respected  3 times  or more

4. WoW without monthly support counter trend

5. Earnings  release

6. News release  ( E. G. NF)

Monthly all time low no close - good counter starting point

Example

1. Big drop on monthly ..big ERC candle

2. Although " consumed" DZ but no candle close below all time low

3. Bullish piercing pattern

If go weekly likely TL break.. Weekly and Daily WoW  possible

Saturday, January 10, 2015

Gaps

Simsci .. enter  at 845am. . Taiwan open..

Be wary of hang Seng open for Simsci

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FTSE  gap minimum 10 points

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SGX Nikkei  close at 2am. .. look at the chart picture..

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For US markets.. use S&P. . Most efficient from fibo standpoint

S&P. . Use 5 am (stock market close) and 1030pm  (stock market open)

Wednesday, January 7, 2015

Trend - Positive and negative example, Chart Pattern - Positive and negative example


1. Trend - Positive e.g.





2. Trend - negative example





3. Chart pattern - positive example.. odds enhancer






4. Chart pattern - negative example








Divergence and RSI Divergence, drop into PRZ, False breakout, RSI overbought/oversold


1. For buying, look for bottom of RSI and Price

a. Price BOTTOM (Valley) drop .. but
b. RSI bottom go up






2. False breakout



3. RSI overbought/oversold



Failed trades






Remember... the entire picture and point system




Harmonics advanced (Point C, pre-Cypher) entry

1.XAB is formed

2. Draw XA extension. . Draw box ard 121.2 and 141.4
3. Draw BA extension. . Look for confluence
4. Price reach point C

5.  Go daily chart....Wait for hammer (or shooting star) long wick. . At least 2/3 of body

6. RSI  oversold or overbought
7. RSI divergence
8. Look left.. any strong support and resistance? or chart patterns? (E.g. double bottom?)
9. Stop loss below wick of hammer plus ATR buffer