Haha, @稻田·* 粒粒芳香 Waiting for your #1 reserved reason :) Before CNY?

@jojojo716 My response to you is here :) http://klse.i3investor.com/blogs/candlestick/113261.jsp

Hi Connie, thanks for the comment. I like the demand zone at 1.90 but because it also breaks the inner trendline. I will be careful to trade a reversal at that zone as it could be merely a backtest to the inner trendline before going back down.

Ideally, I prefer to trade around 2.0-2.1 region, along with a hammer or bullish engulfing and strong volume to see the bullish momentum.

I prefer to trade at the next daily candle as my trading timeframe is daily. I haven't traded a break of structure in lower timeframe with Bursa stock. I do trade forex with the break of structure (i.e. a-b-c) method in the lower timeframe. Just a personal preference.

@speakup From the chart wise, it is bearish. A potential bounce zone might worth to take a look if you want to buy...If you are doing value investing, the current sell-off could become a bargain for the value investor.

@R3D3 Thanks for your input. I totally agree that execution is not easy. That's why it is essential to have a trading plan to cure the "what if" mindset. We can't predict what the market does but to only anticipate and react based on our trading plan. The idea is to take care of the downside with the stop loss.

Aas much as we can do to select the "right stocks", there is no guarantee and that's why a stop loss is important, as we do not want to have the mindset that "it can't happen to such a good stock".

The idea is we don't want 1 or 2 stocks to wipe out all our gain just because we are so confident in the technical/fundamental analysis so we trade without a stop-loss.

If we have continuously lost 5 out of 5 or even 10/10, then we will need to re-examine our method and also the market condition.

Like you mentioned, position sizing is only part of the story. There are other key factors like entry point, stop loss stock selection, etc...

Yes, once we have enough data for our trading expectancy based on different setup and quality, we can incorporate to vary our risk per trade.

@twobits, the target price of 5 is based solely on USD/MYR. DXY is on its uptrend to test 106 and 112.

So far, the extreme measure like to force exporters to convert 75% of their proceeds into Ringgit, did not act as a catalyst to strengthen RM. The strong oil price (above 50) also does not help much.

Should Bank Negara raise the interest rate to catch up with the FED, this will at least flatten the up-trending curve if not having a solid pull back.

One thing to look for is whether Yellen will change her hawkish tone during the FOMC from targeted 3 times rate hike in 2017 to "Due to unforeseen global risk, we are not in a hurry to raise the rate, etc..." Then we might see a meaningful retracement of the USD.

Glad you enjoy it, @jojo716 :) Happy New Year!

lol...Thanks Icon8888. I guess the tariff hike planned by Trump will have further pressure to exporting based stocks in furniture, glove and electrical & electronic too...

Let's see what Trump comes up with after his inauguration on 20 Jan 2017.

Thanks for sharing, Andyhard.

Yup. There are quite a few nitty gritty to look into when trading breakout to avoid fake out...

Although trading on charts, I will often avoid trading earning announcement to prevent the gap.

What's your favourite book on VSA? Keen to find out more :)

Hi Andyhard,

Did you mean volume spread analysis (Wyckoff method)? Anyway, I know a lot of people combine fundamental and technical just like yourself.

For stock trend, it goes back to the fundamental 101, higher high and higher low, lol...

I trade mainly on Support / resistance, trendline, pattern, price action and volume. Sometimes, I do use indicators (like RSI) to spot for divergence.

Hi Andyhard, I am vested in JHM & YongTai-WA. The other 3 still pending. The patterns emerged for stocks the mentioned here definitely for swing / position trading, not for day trade.

You are right. Charting is an art. Different people might spot different patterns and draw different angle for the trendline.

If I were to do the charting on JHM 3 months later, the chart will be similar, unless some trendlines are no longer valid (i.e. break down from the trendline), I might need to draw a few more if appropriate...Not sure if this is what you are referring to?

For me, I separate trading and investment as the money management is totally different...

If I trade based on chart analysis, the most important thing for me is to set stop loss and position size based on the chart. I am not too picky on how to project the target price as there are many ways to do it.

Fibo fanatic might prefer to use multiple Fibo ratio to form the target X. Hence, we could have different target price for the same pattern.

Unfortunately, USD/MYR has been trending very well and hitting new high. Given that the hawkish stand from FED with 3 times rate hike next year, I am bearish on RM.

You are welcomed VenFx :) Let's see how it plays out..