Technical Analysis with shade343. Lecture 2

last SG · 2006-03-17T12:03:41+00:00

Thanks for the other reasons you stated. I did not include them as I thought it was common sense. However, buyers and sellers are NOT ALWAYS the same. Ther...

KumSioJui SG

actually to sidetrack there should be enuf shares on the market for any 1 counter to buy or sell, reasoning is because many fund managers keep majority of their shares they bought at IPO for div play, and many just "lend" back these shares to SGX to earn interest to increase investment earnings as well rather than just sitting on the shares.

What SGX does is that it re-lends the shares to anybody wanting to "short" in other words SGX becomes a market maker for shortseller, so if somebody needed to "short" 1000 lot of DBS shares it would need to borrow from SGX but to prevent SGX from being "caught-out", the settlement of short positions is T+0 that means sameday just in case the original owner of that share block suddenly needed to unload in a hurry and didn't want to lend to SGX anymore.

maggot SG

To play very safe and never lose a cent...put your money in fixed deposits and earn interest Laughing

shade343 SG

Yes that is correct. At the end of the day, amount of bought shares=amount of shares sold. You were not clear in your earlier post. Laughing

Correct, and for that willingness to occur, there must be a large pool of buyers competing with limited sellers right?

Thanks for your contribution again.

casino_king SG

Actually no. They create more shares to sell and if no buyers at a certain price, they keep it and sell next time.

shade343 SG

According to the listing manual, at least 30% of a company's share must be in the hands of the public. A counter is liable to be suspended if less than 10% are in the hands of the public.

KumSioJui SG

I thought is 12% hmm...

in any case there shud be enuf shares on the market, 1% of DBS shares could be several million shares worth millions of dollars, I can't imagine why any single investor would want to short 1000 lots of DBS, if the DBS board decided to act buy back even 1%, these shortsellers could be caught "naked" of a few million dollars, bu si kai wan siao ok Mr. Green

Li Ka Shing SG

Hhhhh.......Like this also discuss.

It doesnt matter.

Continue with the lecture please.

Can go until lecture 12 please? Hurry.

Li Ka Shing SG

Friend,

You are a little bit delusional.

Do you know what TA is?

Precisely with TA and FA then trading the stock market is not gambling.

Li Ka Shing SG

Today I decided to contribute some graphs, to make this thread more lively, coz it has been quiet for few days already.

The following will start with a focus on Support.

Support, what is support?

Support is support loh. Already explained by shade343.

Let's take an example of Yahoo, shall we?

Ayeh, ok.

This is a yahoo chart, I am taking a 3 years chart. Why so long? Just so it become more nice for our example loh.

This chart was taken by me coincidentally on 10 March 2006, I was posting at another forum, later I show the latest chart of today, so we can see how to progress after looking at a chart.

Yahoo, the symbol is YHOO.

(not yayo, ok)

This is YHOO daily chart.

Li Ka Shing SG

You see that? Now you imagine drawing horizontal support lines.

Can imagine anot?

Now I give you this chart, after this you must imagine it yourself ok.
(haha joking)

Li Ka Shing SG

OK this is for the weekly chart. 3 years weekly.

Then this is the Support.

Li Ka Shing SG

As I said, those charts were taken at 10 March, now we see real application of Support in action during current time.

Let's get serious.

If you see those chart, and you want to trade YHOO, what will be your directional bias? Up or down?

It hits the support level already isnt it?

Say, up or down?

If you follow shade343 explanation, then it should go up, because as it hits Support, it will bounce back up. (at least for short term). (short term for this kinda thing means not more than 5 trading days).

This is the latest YHOO chart as of today, 17 March 2006. Today 19 March is Sunday, so the latest trading day was Friday, which was 17 March.

Let's take the shorter time frame, not 3 years anymore, this is past 6 months, so we can see bigger.

Then this is the even bigger, so we can zoom and see clearly. This is 1 month.

'Last point' is actually the last point in our 3 year chart example, the one we saw first time.

YHOO bounced up in the next few trading days, as Support is providing help.

Li Ka Shing SG

And now we see an application of Support turning into Resistance.

If you notice, why the price doesnt go any higher leh?

Because it meets resistance.

Li Ka Shing SG

Sian, nobody likes to talk about TA.

How come this thread so quiet?

exkiwi SG

Are you sure TA work? To me, stock market is about sentiment and fundamental. TA is for those who want to justify their sinful fees and confuse investors. Sorry, I am not talking about you Mr. Green

Li Ka Shing SG

Hi, me again.....

Ya, TA works.....TA is basically just sentiments.....like when you see somebody hand shakes because he is afraid...... and then he runs away......that is a sentiment......next time you only need to watch his hands.....got shake anot.....if you see his hands shake again.....then you can predict that he will run.......Well, TA is same principle....TA is simply watching sentiment.....Same thing really......

As you see from charts above.....those are real applications on how TA works...

I understand some people are sceptical....because how can we see those black bars and then predict....such nonsense idea...sound like hype......but if you observe a guy with shaking hand always run away......and this happen again and again......you can then conclude the next time his hand shake, he will run....this is TA in essence....

But anyways,

Actually Im here to talk about Support and Resistance again. Please contribute and talk here also leh......

I have PM-ed shade343 as a courtesy and sought his permission. It was graciously granted. (He's the one who opened this thread). So now let's talk about other forms of Support and Resistance.

We've seen horizontal S/R.

Now let's talk about non-horizontal S/R: rising and falling S/R line.

Li Ka Shing SG

Eh sorry….I just saw shade343 opened another thread on lecture 3 on trendlines. I think we move there….

casino_king SG

TA is like making a wild guess... if you are right, you boast to the whole world and if you are wrong, you blame something... anything....

Li Ka Shing SG

Firstly....do you mind me asking....

Im not trying to arrow you or attack you personally, what Im trying to do is.....to know...why or how, you end up thinking this way. What made you draw this conclusion that TA is actually 'like making a wild guess' , as you put it.

How long had you been a TA practioner before you finally found its 'fault' and decided to abandon it? And what are those?

Perhaps this will make a more useful discussion this way.

dinky1409 SG

Aiyo!! You know what is irritating? You guys post all this and yet I try to read so hard over and over again but still don't understand!!!!! Sad I want to understand but don't understand liao... How?? Really want to learn leh..

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