No. No. No. Our equity market is imperfect and inefficient because the discount mechanism is not well-functioning. Otherwise, there won't be such a thing as insider information. And there won't be UMA.
A good trader relies on 3 primary reversal signals. These are:
1. Reversal day. A basic rule about reversal is that you have to have a short-term trend to reverse. But today, we hadn't seen higher lows followed by higher highs. At best, we could just say the KESM price actions today is about near its bottom(s).
2. Narrow-range day. Candlestick pattern of a doji, was not being spotted
3. Volume spike. No volume spike (surge in volume) was imminent.
Only if you could find 2 (out of 3) signals, then the likelihood of reversal is quite probable.
KESM share prices had drifted southwards for about 8 days (a near price pattern of 8 black crows). Although doji candle stick pattern was not spotted, but the candle stick price pattern for today is 'quite near' the typical morning star, which is normally taken as a 'reversal' signal albeit a weak one.
However, to rely on just 1 day's price actions (1 candle stick) would be too risky.
Put it this way.......between all the E And E contractors, testers and assembly operations I rather hold the expensive one like Kesm than all the cheapor ones like Comintel, EG etc etc.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Paper Yong
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Posted by Paper Yong > 2016-01-22 13:31 | Report Abuse
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