Wednesday, September 14, 2011

PMetal, KSL & YTLCMT broke their uptrend line

The following stocks have broken their nice fitting uptrend line. The breaking of an uptrend line gives rise to two possibilities. It could be either a trendless movement or a downtrend. In a bearish market, the chance of a stock going into a downtrend is higher than the chance of it going into a trendless movement. Thus, it is prudent to sell or reduce our exposure once an uptrend line has been violated.


Chart 1: PMetal's weekly chart as at Sept 14, 2011 (Source: Quickcharts)



Chart 2: KSL's weekly chart as at Sept 14, 2011 (Source: Quickcharts)



Chart 3: YTLCMT's weekly chart as at Sept 14, 2011 (Source: Quickcharts)
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4 comments:

  1. YondaimeThursday, September 15, 2011 5:22:00 PM

    Hi Alex,

    Can pls share how u added the trendline in charts from tradesignum? I've tried changing the template settings but none works.
    Thks.

    ReplyDelete
  2. Alex LuThursday, September 15, 2011 8:57:00 PM

    Hi Yondaime

    I have a very crude way of plotting a trend line onto a price chart from Tradesignum. The steps are:
    1) Copy the Image from Tradesignum.
    2) Paste it onto a new Paint doc.
    3) Select 'line' from the Tool Box & start drawing.

    Besides Quickcharts, all the tools & links that I use regularly are available to the readers. I try to use the free stuff on the web instead of paying for them. After using charts for 15 years, I think the less sophisticated the method, the more reliable it is.

    ReplyDelete
  3. YondaimeSunday, September 18, 2011 12:26:00 AM

    Thanks for the tip, Alex. After following your blog, I've started looking into TA seriously, and even got hold of a book on swing trading by Azizi Ali. Maybe you should come up with a book yourself ;)

    ReplyDelete
  4. Alex LuSunday, September 18, 2011 9:11:00 PM

    Hi Yondaime

    Hmmm, I will think about it.

    ReplyDelete