18 Dec SGX Mainboard

Paper traded NOL @ $1.54

Action: HOLD

NOL opened at $1.52 at the market start. It wasn't poised till it went past the $1.54 level (Resistance for the last few days in a row). Chart of NOL before 18 Dec. I believe the next psychological barrier will be at $1.60.

 

Dow 16th Dec 2009

Dow has yet again hit the strong resistance level (mentioned in prev entry) and headed downwards for 2 consecutive days.

Signs of increasing interest in selling. I wouldn't be surprise if it continues to be red on the 17th Dec.

Dow Jones as at 3rd Dec

Dow Jones Industrial closed -86.53 (-0.83%) with a volume higher (almost twice) than the day before. It has tested the 10500 range 3 days in a row before heading down on those days. Am anticipating a drop tonight with all the technical indicators turning downwards.

Types of Charts

OHLC - Open High Low Close charts. Plots the high and low of the price movement vertically and the open and close horizontally.

Candlestick chart - Similar to OHLC, but open and close are filled. Often Black or Red candles represent a close lower than the open. While White, Green or Blue candles represent a close higher than the open.

Line chart - Connects each closing interval together on a line.

Personally, I prefer using the Candlestick chart as it gives an overall preview very clearly. Future charts shown here will mostly be candlestick charts.

Technical Analysis Explained

Hi everyone,

Welcome to my blog on my views of the world markets. I started this with the intention of keeping up with the current market trends around the world and giving my take on them.
I started off as a fundamental trader and now I do mainly technical trading.

Why technical trading you may ask?
Lets just start with understanding what technical trading/analysis actually stands for.

What Does Technical Analysis Mean?
A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity.

Technical analysts believe that the historical performance of stocks and markets are indications of future performance.

E.g. At an apparel shop, a fundamental analyst would go around trying out clothes before deciding whether to buy a particular design. By contrast, a technical analyst would observe the types/designs of clothes most people purchase and measure the popularity of each before making a purchase. Disregarding the intrinsic value of the products, the technical analyst's decision would be based on the patterns.

Likewise in trading, a stock only moves in price when there is interests generated in it. Even the strongest company would require continual interest for its price to head up.
See? Technical trading is very much on human psychology and the current buying trends.
I'll attempt to explain further in future posts.

For one sure thing, CHARTS DON'T LIE.