OK.

Give simple example

Take the first one.
RSI.
It just measures the relative strength of the stock based on the days set in the parameter of the indicator.
In most cases, the period is set to 14 days.
Very basic stuff la...
nothing geng.
Now what most people tend to do is...
they look at this indicator to see if the stock is overbought/oversold.
In which, you will see many beginners screaming rsi oversold la... time to buy.
or when it's overbought, it's time to sell... etc etc.

Generally, it's ok but the number of failed instances is far too many.
ie. the EXTREMES.
The EXTREMES is where one make or break really.

For in the EXTREMES of the RSI indicator, this is where we get the 'rolling down the hill' stocks...
or the forever flying stocks.

so if one gets their tails up and simply go ga-ga once the RSI indicator flashes its alerts...
one will surely lose out....

in the 'rolling down the hill' instances...
one could end up buying early...
only to see the stock continue sinking after one bought....
example? err.... the ONG sector.

if one gets kiasu...
and jumps the gun selling once the rsi shows overbought...
one would definitely miss out on the multi baggers.


however.... having said all that ayam...

for beginning charting...
it's ok la.

just don't over rely too much on any indicators...


it's like using financial ratios...
like PER....
I am sure you understand you cannot over rely on it too... yes?
and sometimes using PE alone... it's also risky.

Haiyoooooo...... don't say like that maaaa....

Last time opened the Traders Kopitiam what.
But then some buggers thinks it's ok to be jerks and start talking ayam about investing.

Oh yaa.... last time you asked for tips....

PER can use, over the years of investing, but I no longer rely on historical PER

instead I look for FUTURE PER..

Need more predictive home work.. but ok la..

Ah boon very the kiamsiap nowdays..

I also tak pndai tengok this oscillator...

But i can see MA or EMA...put 2 lines those 12 and 24 days....if the line deviate among each other gap too big somehow they will try to converge back to each other...

Macam physics law pulak....i guess some very technical trader use this to measure how log can a certain uptrend or downtrend goes before retreating. BNF japanese trader iinm use this method in his swing trading.

For RSI also is more straightforward sometime i sue it to measure whether seller/buyer already exhausted and the latter will take over....

Nice, a topic solely for trading? Great!

Yeah, sometimes we as traders or even investors could not just rely a lot on the indicators. Indicators are just merely used for the sake of emotion during trading, psychological behaviour would be best described if one is solely using TA.

However, just from my point view, in more advanced markets like UK and US, it could be proven that this method is workable since most of their trades are filled via high frequency trading using some bunch of algorithms. Especially if we can see it from indices or futures for example, it is basically a wash, rinse, repeat scenario. Some charts could be proven nearly a success while others do not (who was it that pull out that we are in a 1929 style of recession graph, where is it?). Personally, I never used the RSI as sometimes it could be just a paradox to investors and it is not proven. One needs like few indicators to confirm whether the sideways graph is about the break upwards or downwards, add in Fibonacci, MACD etc. Never liked using RSI during intra-day trade, for long-termers it's okay.

Also, on the PER, always do not like it when using it from the past, for example on UMW when oil prices were so excellent. Rio Tinto when they were at the top of the world when mining earnings were off the chart, it's different now. As an alternative, using PER is useful only when looking forward how it will be 5 years on. But usually stocks best for trading should rely both fundamental futures and the technical chart for best picks.

Now do not assume whatever I said is right, somewhere here could go wrong...

I am not one who post and hopes that others help push me stockm

Just saying only....

All methods got risk one...
How we manage AND acknowledge the risks is more important.

WAH !!!

Long time no chat!!!

Excellent writing skills.

So waaaaaazzzzuppp !
Doing good ?

Do visit this corner more often.

And please feel free to post (in regardless of me participation)

No need mention its your stock.. just post some charts..

Ask Ah Max.

Ok.ok...

Stock with possible Cup and Handle patterns.

Where's the buying point?





Can use In SaS as example....

Lol.. after break the downtrend line?

All good so far, I'm out of the game for this week, need to re-think some strategies.

You know, that we have a proper trading topic, wouldn't mind dropping in every now and then.

But for now, TA perspective, can look at stocks like Dialog. Dialog has a flag pattern graph, I'll pull it up when I'm free. Not sure why Dialog, but it must be something...

Nope.

ini tarak bagus ka, unisem

Either that or go back to the rim of the cup..

Me not TA expert u know..

sudah breakout very high...dont chase the high....we dont know if its already near its top for the time being....

chase the breakout, wait for pullback, or wait for consolidation?

Hehehehe..... I know.

Try google.

Go see what they say.