24 February 2011
what to do after deep correction?
1. hold and do not sell blue chips and wait for rebound.
it does not make sense to sell in desperation after deep correction.
2. do not buy yet.
wait for MACD sends buy signal first, then watch if bottom formations are developing on STI and its component stocks and if bullish candle sticks are appearing on the weekly charts and if bullish divergences are appearing on the daily charts. in this way we can avoid further potential correction.
3. buy once bottom formation breaks out with huge volume.
it does not make sense to sell in desperation after deep correction.
2. do not buy yet.
wait for MACD sends buy signal first, then watch if bottom formations are developing on STI and its component stocks and if bullish candle sticks are appearing on the weekly charts and if bullish divergences are appearing on the daily charts. in this way we can avoid further potential correction.
3. buy once bottom formation breaks out with huge volume.
Labels: Thoughts
