The most important Technical Analysis for me is the Price Volume Analysis. The Price Action needs to be supported or validated by Volume.
Volume reveals activity. Volume reveals the truth behind the Price Action. Volume validates Price. If the price went up without Volume, hence, we need to be careful as the Price might not sustain.
We try to identify the pattern of a few successful breakout examples. The similar patterns that i had identified as below:
1. Notice the days with high volume.
2. Identify the closing zones of candles (Zone 1).
3. If the chart had been sideways, there might be chance.
4. Prefer to breakout the resistances with volume.
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And we try to observe whether it is applicable in those counters that havent spiked. Let's GO!!!
1. MMSV
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| MMSV Daily Chart |
First, we take note of the day with high volumes. And we see the closings of the candles, whether it is closing in Zone 1, Zone 2 or Zone 3. Zone 1 signifies a lot of buyers while Zone 3 signifies a lot of sellers. Zone 2 is a neutral between buyers and sellers. For MMSV, we noticed many days with high volume mostly closing in Zone 1, which meaning to say a lot of buyers had entered MMSV and they are still holding it. Why i say they are still holding it? If they had sold the shares, we need another similar volume. Got me?
Accompanied by a morning star and bullish harami, MMSV broke the resistance of 1.23 today (8 June 2017). MMSV had a beautiful closing with big volume. The high volume that broke the resistance is a perfect combination. We want the chart to breakout the resistance with high volume as confirmation. This is what i say, Price Volume Analysis. Nothing fancy, just look at the price and volume.
2. JFTECH
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| JFTECH Daily Chart |
JFTECH today limits up but close lower a bit. We follow the steps. Notice the days with high volume? The candles mostly closing in Zone 1, meaning that the buyers are in control. And there are no other days with high volume or candles closing at Zone 3. The chart had been sideways and finally breakout with volume. JFTECH broke the resistance of 1.38 with a beautiful volume~ Perfecto!!!
3. FPGROUP
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| FPGROUP Daily Chart |
FPGROUP today bounces at the support of 0.87. Step by step, notice the days with high volume. Notice the green arrows that i had marked. Mostly candles close at Zone 1. There are no other days with similar volumes that close at Zone 3. The buyers are still in control. And finally the day arrived today. I hope FPGROUP will breakout 0.935 with a convincing volume. Patience bear fruit~ But we need to be patience with the similar patterns counters.
4. OKA
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| OKA Daily Chart |
Another example, OKA. OKA is also in a new high now. Notice the days with high volume. The marked with green are closing at Zone 1. The red ones are closing at Zone 3. More green marks signify that the buyers are still holding. In the last week, OKA broke the resistances of 1.58 with convincing volume and now supported at 1.67.
5. OCK
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| OCK Daily Chart |
Now, lets look at OCK chart. OCK chart might not be as ideal as examples above, due to the red marks are similar amount to the green marks. The resistances now stands at 0.96 and next at 0.975. But slowly the chart is forming a ascending triangle. But still we can take note of the recent activities. Yes, this one put in our watchlist.
6. OCNCASH
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| OCNCASH |
OCNCASH might be another example that worth to be put in our watchlist. Notice the days with high volumes, mostly closing in Zone 1. And the chart had being sideway between 0.81 and 0.73, forming a support at 0.73 and resistance at 0.81. I hope OCNCASH can breakout the resistance of 0.81 with convincing volume just like the few examples above.
Just remember the steps that i had mentioned above for the Price Volume Analysis.
These are the few examples that i had noticed. Feel free to communicate with me via FB post, FB PM or whatsapp (016-2467867).
Let's monitor the counters using the simple TA skill, Price Volume Analysis.
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| Course Outline （English） |
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| Tentative Schedule |
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希望可以在股票投资课程见~
希望可以在股票投资课程见~
Eventhough we are just merely retailers, we should be a knowledgable one~
If you like my way of analysis and you haven't join me in my facebook, appreciate if you could like my FB page, https://www.facebook.com/gainvestor10sai/?fref=ts
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Let's Ride the Wind and Gainvest
Gainvestor 10sai
8 June 2017
10.25pm
Hello,May I know how to see Zone 1 ,2 and 3?I didn't see u draw them out.
ReplyDeletehi, Ng. If you can see a candle, you try to divide it to 3 parts. The most up will be zone 1, middle is zone 2 and lowest is zone 3. And we see the closing of the candles. See the closing sloses in which zone.
DeleteUseful only for high volume candle?
Deleteuseful when apply together with high volume.
Delete