Trading Strategies for Shares Investment

Typical Bullish Signal - Yongnam

2007-07-01T04:33:00.000+08:00

Yongnam has been continuously moving up since last quarter of 2006. From the chart, we are able to see multiple combined strong bullish signals:

1.MACD crossover above zero centerline
2.Breakout of the triangle
3.Volume increase

Typically, when this three signals combined, it present a very strong bullish signal and the chance of for the price to move up in the following few days is very high - with evidence shown in this chart.

In fact, TA players and contrarian likes this combined signal for entry.

To me, in order to increase my chance of making and maximising profitable investment, the compbination of FA and TA is very important. FA helps me to select a good stock and TA will helps to determine the entry/exit point.

And currently, Yongnam fits into this category.

What is Technical Analysis?

2007-03-02T13:19:00.000+08:00

Technical Analysis is the forecasting of possible future movements of price based on the past or historical records. Like other forecasting methods, it is using the past to determine the possible future, although the result may not be 100% accurate but it helps investors to anticipate what is the possible price movements ahead.

Technical Analysis is used by many investors and fund managers. It helps them on determining the trend of the market and individual stock, as well as, to determine the timing for entry and exit in their investment.

Example of a Bullish Sign for Entry

2007-03-02T13:11:00.000+08:00

This is a good example of a chart with strong bullish signal on Swissco recently. The followings are the signals from the indicators that combined together to form a real bullish sign:

1. MACD Positive Divergence.
2. MACD crossover zero center line.
3. Price line break out of the top resistance line of the triangle.
4. Volume increase together with the price.

A good entry point will be just after the breakout is confirmed.