Recently, numbers of mine friends, neighbours......asked me these - can I buy.....this stock, that stock at......, should I sell .........at ............ Well I trade what I see. Whether I long or short, I have a specific reason of entering a trade. I don't follow the crowd. I don't listen to others.
Let me share with everyone how I catch the recent turned. Since Taiwan had been leading the market movement over the past few months, I shall use them as an example. And same as usual before I look the actual index, I always study their Future movement. Therefore, the chart that I am going to show you is "Tawan Index Future".
1. The market started coming down in early November. The downside trend was - down, consolidated, down again, then rebounded and finally third wave down all the way to point number 2.
2. A white long candle which we have not seen for months. Market opened - a scary and panic gap down. But end of the day market closed high with volume. This was what I called a typical buyer commitment. Who were the buyers? You and me? No way. It was the big boys who came in.
3. Few day later, we saw another long white candle. And again with volume. Buyers - you and me? No!. Once again the big boys.
4. Next day, market gap up and closed high. Unfortunately, next 3 days, market end lower. The trick was here. Yes, all the 3 days opened with panic gap down, but when you take a closer look at the candles, they were all white spin top candles. It told me that someone was supporting the market.
5. Came back from CNY. Taiwan closed 10 days for CNY. Remember what happened to that 10 days. Market opened with a panic gap down. But end of the day what happened? Market closed positive 3 point. Who were buyers? Retail? Ask ourselves, how many of them dare to buy at that moment / on that day?
I hope my sharing benefit everyone. Next time when you encounter the similar situation, you know what to do.
Let me share with everyone how I catch the recent turned. Since Taiwan had been leading the market movement over the past few months, I shall use them as an example. And same as usual before I look the actual index, I always study their Future movement. Therefore, the chart that I am going to show you is "Tawan Index Future".
2. A white long candle which we have not seen for months. Market opened - a scary and panic gap down. But end of the day market closed high with volume. This was what I called a typical buyer commitment. Who were the buyers? You and me? No way. It was the big boys who came in.
3. Few day later, we saw another long white candle. And again with volume. Buyers - you and me? No!. Once again the big boys.
4. Next day, market gap up and closed high. Unfortunately, next 3 days, market end lower. The trick was here. Yes, all the 3 days opened with panic gap down, but when you take a closer look at the candles, they were all white spin top candles. It told me that someone was supporting the market.
5. Came back from CNY. Taiwan closed 10 days for CNY. Remember what happened to that 10 days. Market opened with a panic gap down. But end of the day what happened? Market closed positive 3 point. Who were buyers? Retail? Ask ourselves, how many of them dare to buy at that moment / on that day?
I hope my sharing benefit everyone. Next time when you encounter the similar situation, you know what to do.
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