26 June 2012
Bought 100 units of Nikko Am STI ETF at 2.86 today.
Labels: Dollar Cost Averaging, ETF, Live Trading Records, STI ETF
11 June 2012
Gap
Gaps occur when the lowest price traded is above the high of the previous day or, conversely, when the highest price traded is below the previous day's low. A gap is filled when the range of subsequent bars closes the gap. There are two basic rules:
1.Avoid trading common gaps, and
2.Only trade gaps when they are confirmed by volume. Equivolume charts highlight the interaction of price and volume.
Common Gaps
Common gaps occur in markets without a strong trend. They are not followed by new highs or new lows and are quickly closed in subsequent days' trading. Some gaps are caused by events and should be ignored:
•Ex-dividend gaps occur as price adjusts on the day after a dividend becomes payable;
•New share issues; and
•Expiry of futures contracts.
Breakaway Gaps
Breakaway gaps are normally accompanied by heavy volume and occur when prices break out of a trading range. They are usually followed by a series of new highs in an upside breakout or, a series of new lows in a downside breakout, and are seldom closed.
Trading Rules
Upside Breakaway
If the gap is accompanied by heavy volume, go long and place a stop-loss at the lower end of the gap.
Downside Breakaway
If the gap is accompanied by heavy volume, go short and place a stop-loss at the upper end of the gap.
Continuation Gaps
Continuation gaps occur near the middle of strong trends and are useful in projecting how far the trend will continue. They are followed by new highs in an up-trend or new lows in a down-trend, which distinguishes them from exhaustion gaps. They are not normally closed.
Continuation Gaps Trading Rules
If volume is strong (up at least 50%), trade as for breakaway gaps. Enter the trade early and wait for new highs (or new lows in a down-trend) to confirm the pattern. If there are none in the next few days then exit immediately — it could be an exhaustion gap.
Exhaustion Gaps
Exhaustion gaps occur at the end of a strong trend and are the last surge before the trend expires, normally on heavy volume. They differ from continuation gaps in that they are not followed by new highs (in an up-trend) or new lows (in a down-trend) and are closed shortly afterwards.
Exhaustion Gaps Trading Rules
Upward Exhaustion Gap
Sell short (or close your long position) and protect yourself with a stop above the last high.
Downward Exhaustion Gap
Go long (or close your short position) with a stop below the latest low point.
Island Reversal
Look out for island clusters, identified by an exhaustion gap followed (after a few days) by a breakaway gap in the opposite direction, they are powerful reversal signals.
Island Reversal Trading Rules
Trade in the same way as exhaustion gaps.
1.Avoid trading common gaps, and
2.Only trade gaps when they are confirmed by volume. Equivolume charts highlight the interaction of price and volume.
Common Gaps
Common gaps occur in markets without a strong trend. They are not followed by new highs or new lows and are quickly closed in subsequent days' trading. Some gaps are caused by events and should be ignored:
•Ex-dividend gaps occur as price adjusts on the day after a dividend becomes payable;
•New share issues; and
•Expiry of futures contracts.
Breakaway Gaps
Breakaway gaps are normally accompanied by heavy volume and occur when prices break out of a trading range. They are usually followed by a series of new highs in an upside breakout or, a series of new lows in a downside breakout, and are seldom closed.
Trading Rules
Upside Breakaway
If the gap is accompanied by heavy volume, go long and place a stop-loss at the lower end of the gap.
Downside Breakaway
If the gap is accompanied by heavy volume, go short and place a stop-loss at the upper end of the gap.
Continuation Gaps
Continuation gaps occur near the middle of strong trends and are useful in projecting how far the trend will continue. They are followed by new highs in an up-trend or new lows in a down-trend, which distinguishes them from exhaustion gaps. They are not normally closed.
Continuation Gaps Trading Rules
If volume is strong (up at least 50%), trade as for breakaway gaps. Enter the trade early and wait for new highs (or new lows in a down-trend) to confirm the pattern. If there are none in the next few days then exit immediately — it could be an exhaustion gap.
Exhaustion Gaps
Exhaustion gaps occur at the end of a strong trend and are the last surge before the trend expires, normally on heavy volume. They differ from continuation gaps in that they are not followed by new highs (in an up-trend) or new lows (in a down-trend) and are closed shortly afterwards.
Exhaustion Gaps Trading Rules
Upward Exhaustion Gap
Sell short (or close your long position) and protect yourself with a stop above the last high.
Downward Exhaustion Gap
Go long (or close your short position) with a stop below the latest low point.
Island Reversal
Look out for island clusters, identified by an exhaustion gap followed (after a few days) by a breakaway gap in the opposite direction, they are powerful reversal signals.
Island Reversal Trading Rules
Trade in the same way as exhaustion gaps.
Labels: Gap, Reference, Stock Trading System
Morning Star and Evening Star
Star Formations
Stars are similar to gaps. A long body followed by a much shorter candlestick with a short body, where the bodies must not overlap -- though their shadows may.
Morning Star
The Morning Star pattern signals a bullish reversal after a down-trend. The first candlestick has a long black body. The second candlestick gaps down from the first (the bodies display a gap, but the shadows may still overlap) and is more bullish if hollow. The next candlestick has a long white body which closes in the top half of the body of the first candlestick.
Evening Star
The Evening Star pattern is opposite to Morning Star and is a reversal signal at the end of an up-trend. The pattern is more bearish if the second candlestick is filled rather than hollow.
Doji Star
A Doji Star is weaker than the Morning or Evening Star: the doji represents indecision. The doji star requires confirmation from the next candlestick closing in the bottom half of the body of the first candlestick.
Stars are similar to gaps. A long body followed by a much shorter candlestick with a short body, where the bodies must not overlap -- though their shadows may.
Morning Star
The Morning Star pattern signals a bullish reversal after a down-trend. The first candlestick has a long black body. The second candlestick gaps down from the first (the bodies display a gap, but the shadows may still overlap) and is more bullish if hollow. The next candlestick has a long white body which closes in the top half of the body of the first candlestick.
Evening Star
The Evening Star pattern is opposite to Morning Star and is a reversal signal at the end of an up-trend. The pattern is more bearish if the second candlestick is filled rather than hollow.
Doji Star
A Doji Star is weaker than the Morning or Evening Star: the doji represents indecision. The doji star requires confirmation from the next candlestick closing in the bottom half of the body of the first candlestick.
Labels: Candlestick Pattern, Reference
04 June 2012
Main US ETF's
Finalized main US ETF's planned buy levels (retracing 50, 60, 70, 80, 90% from 2007 high) and placed alerts at 50% in the trading platform today. Main Solid US ETFs - SPY QQQ EEM IWM EFA EWZ XLE XLF DIA FXI GDX VWO IVV MDY XLU XLK IWF VTI IWB IWD IJR IVW VGK IWR IJH VEU VEA VOO GLD SLV
Labels: Dollar Cost Averaging, ETF, plan, Thoughts
Bought 100 units of Nikko Am STI ETF at 2.76 today
Labels: Live Trading Records
01 June 2012
Bought 300 units of Nikko Am STI ETF at 2.80 to 2.81 today
Labels: Live Trading Records
