STI is bullish, no correction.Wednesday, November 18, 2009
Singtel
Gold
I am so dead. Did not realise that there was a chart with indicators for it. Was bullish since Aug 10 to 24, cut above the 50 MA line. Backtested twice.
RSI is now slightly overbought but it matches the increase in price.
At Nov 3rd, MACD has a positive cutover.
I need to buy back at 1075 to cut loss?
Oh my goodness, I shorted without a chart.
Saturday, October 31, 2009
Why Short Singtel
Rounding: Notice the chart candlesticks rounding down and the volume rounding up. This looks like a short set up to me. Too bad, I anyhow buy before doing an analysis.
STi is still in consolidation mode
STi is still in consolidation mode, no bull no bear. It is playing out in a rectangle formation.
1st TA: RSI limits
Oversold =20 and below Overbought =70
For example, 31st May capitaland is 68.44 currently from my poems chart. Hence, it is not oversold (less than 30) or overbought yet (more than 70). However, point to note is: Above 70 could be quite some time before it reverses to down trend. Similarly, 30 and below, could be quite some time before it goes up. So don't jump in straight away upon seeing the numbers.
RSI is just a rough guide (one of the many indicators to be read together). Biosensors has an engulfing bear as of today. This will ensure that it will continue to correct for the next few day. One of the possible explanation is due to high RSI. Whenever RSI is overbought, most chartists will be reluctant to push price higher. So when you can't push it higher, you push it lower (lowering the RSI along the way and eking out contra players as well). When RSI is at reasonable level, pushing price up will have more followers. BUT that doesn't mean RSI can't stay high for long period. Hi-P have its RSI above 70 for a month, during Mar to Apr as price was kept pushing up to reach its limit.
RSI of Las Vegas Sands on Wednesday, 28th Oct 2009 is less than 10. It was a buy.
For example, 31st May capitaland is 68.44 currently from my poems chart. Hence, it is not oversold (less than 30) or overbought yet (more than 70). However, point to note is: Above 70 could be quite some time before it reverses to down trend. Similarly, 30 and below, could be quite some time before it goes up. So don't jump in straight away upon seeing the numbers.
RSI is just a rough guide (one of the many indicators to be read together). Biosensors has an engulfing bear as of today. This will ensure that it will continue to correct for the next few day. One of the possible explanation is due to high RSI. Whenever RSI is overbought, most chartists will be reluctant to push price higher. So when you can't push it higher, you push it lower (lowering the RSI along the way and eking out contra players as well). When RSI is at reasonable level, pushing price up will have more followers. BUT that doesn't mean RSI can't stay high for long period. Hi-P have its RSI above 70 for a month, during Mar to Apr as price was kept pushing up to reach its limit.
RSI of Las Vegas Sands on Wednesday, 28th Oct 2009 is less than 10. It was a buy.
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