Reading a technical analysis book now by John. L. Person. There are quite some examples of candle charts, explaining what they indicate and stuffs like that.
Ok. Let me apply what I learnt on the spot.
Stumbled upon cari's chinese forum and found some discussion about Titan. So it'll make a good candidate then.
Plucked this out from TheStar.
3 months candle charts with volume indication (hope Nexus is ok with this since it's a personal blog)
After trying my best to furnish it with some candle chart indicators.
1. (not so clear)Hammer/Hanging man - indicator of a reversal. (but notice the next day it still tries to go up but got drag back down?)
2. bullish engulfing pattern - black follow by white with white opening at lower than previous low.
3. reaching previous resistance and forming a clear hammer - reversal and 'boh lat' to break resistance
4. gravestone - suppose to indicate a reversal (since it's also confirmed by a new low start on the next trading day) but somehow the next next day the trend is upward. How to explain leh?
Just started with some new learn kung fu, so it's not accurate. Do not take all these as an indication to buy/sell since it's the author's own opinion (I wrote as if thousands of people are reading my blog :P)
Just for some simulation, I'll go for a buy tomorrow @ 1.38 based on the strong uptrend and it broke the previous resistance. It should be forming a '3 white soldiers' tomorrow.
Let's review this tomorrow again.
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Reviewed on 22 May 2008
And voila.... my prediction is wrong. Titan closed at 1.32. If I'd gone in @ 1.38 @RM2k, I'll be losing a few meals there. :P ( approximately RM100 including transaction fees)
And I have no idea what trend is this. Anyway, I remembered there's this technical analysis expert that says: if there's a gap in candle chart when price move up and down, it'll tend to cover up the gap. So the gap is 1.30-1.31, let's review again to see whether the trend will cover this gap or not. :)
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26/5/2008
Price for Titan as of today is 1.31. One step closer to the gap.
By the way, for technical analysis to be more convincing, the trading have to be substantial also. And looking at Titan, the volume is somewhat small.
I'll choose another stock to do my TA on. Maybe Equine?
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28/5/2008
Looks like the gap is already close. Will it form a reverse neck and shoulder?
Anyway I'll try to do a fundamental analysis on it sometime this week. Maybe there's an external factor that made the share price drop?
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