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Trading Strategies on UTRADE Platform
(revised – June 2015)
Jeffrey Tan
+65 6590 6629
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Disclosures
Disclosures/Disclaimers
This report is prepared and/or distributed by UOB Kay Hian Pte Ltd (“UOBKH”), which is a holder of a capital markets services licence and an exempt financial adviser in Singapore.
This report is provided for information only and is not an offer or a solicitation to deal in securities or to enter into any legal relations, nor an advice or a recommendation with respect to
such securities.
This report is prepared for general circulation. It does not have regard to the specific investment objectives, financial situation and the particular needs of any recipient hereof. You should
independently evaluate particular investments and consult an independent financial adviser before dealing in any securities mentioned in this report.
This report is confidential. This report may not be published, circulated, reproduced or distributed in whole or in part by any recipient of this report to any other person without the prior
written consent of UOBKH. This report is not intended for distribution, publication to or use by any person in any jurisdiction outside Singapore or any other jurisdiction as UOBKH may
determine in its absolute discretion, where the distribution, publication or use of this report would be contrary to applicable law or would subject UOBKH and its connected persons (as
defined in the Financial Advisers Act, Chapter 110 of Singapore) to any registration, licensing or other requirements within such jurisdiction.
The information or views in the report (“Information”) has been obtained or derived from sources believed by UOBKH to be reliable. However, UOBKH makes no representation as to the
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UOBKH and its connected persons may have issued other reports expressing views different from the Information and all views expressed in all reports of UOBKH and its connected
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As of the date of this report, no analyst responsible for any of the content in this report has any proprietary position or material interest in the securities of the corporation(s) which are
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Each research analyst of UOBKH who produced this report hereby certifies that (1) the views expressed in this report in any event accurately reflect his/her personal views about all of the
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Our Technical Analysis
Our regular technical analysis write-up
can be found in:
Retail Market Monitor
- Weekly Support and Resistance Watch
- Traders’ Corner
- Money Talk
- Special Focus (Ad Hoc)
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Consider formulating a step–by-step
trading strategy
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Step-by-Step Trading Strategy
1. What is the trend of the stock?Consider the use of MA (overlay)
to identify trending stocks
2. Use indicators to time entryConsider the use of at least two
indicators to assess the time of
entry
3. Identify current support and
resistance levels
4. Based on individual risk /
reward appetite and entry
pointsBEstablish stops/trailing stops and
potential take-profit levels
5. Set price alerts
Steps to considerB.
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Step-by-Step Trading Strategy
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Step-by-Step Trading Strategy
1. What is the trend of the
stock?Consider the use of MA
(overlay) to identify trending
stocks
2. Use indicators to time entryConsider the use of at least two
indicators to assess the time of
entry
3. Identify current support and
resistance levels
4. Based on individual risk /
reward appetite and entry
pointsBEstablish stops/trailing stops and
potential take-profit levels
5. Set price alerts
Steps to considerB.
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Using Moving Averages
to trade stocks
Step-by-Step Trading Strategy
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Trend Reversal strategy using
MAs
Acting as support or resistance
SELL
BUY
BUY
BUY
BUY
SELL
SELL
Failure of a follow through
of the dead cross
Step-by-Step Trading Strategy
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Where is MA the most
effective?
SELL
SELL
BUY
BUY
BUY
BUYSELL
BUY
BUY
BUY
BUY
SELL
SELL
BUY
SELL
BUY
Step-by-Step Trading Strategy
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One of my preferred method of
using Moving Averages# an
example using the STI index
Step-by-Step Trading Strategy
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Where is MA the most
effective?
BUY
Step-by-Step Trading Strategy
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Trendlines,
Support and Resistance
Step-by-Step Trading Strategy
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Simple Trendlines to identify
potential trends
SELL – support-turned-
resistance
BUY – trendline
acting as support
BUY
SELL
?
Step-by-Step Trading Strategy
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Price action hovers at
support-turned-resistance
before a breakout eventually
occurs
SELL
BUY
BUY
BUY
SELL
Step-by-Step Trading Strategy
BUY?
BUY?
SELL ?
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Useful to know some candlestick patterns
Step-by-Step Trading Strategy
Resistance turned
support level
“Bullish Hammer”
“Dark Cloud Cover”
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Is there another way besides
using Moving averages and
trendlines to determine trend?
Step-by-Step Trading Strategy
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2020
Step-by-Step Trading Strategy
Lower high
Lower low
Higher high
Higher lows
?
Lower highs
Lower low
Higher high
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Complementary to use of
trendlines and moving
averages – checking to see if
the downtrend remains intact
Step-by-Step Trading Strategy
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Complementary to use of
trendlines and moving
averages – checking to see if
the uptrend remains intact
Step-by-Step Trading Strategy
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Request for a stock from the
audience for another illustration
Step-by-Step Trading Strategy
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Combining support and
resistance and trends
Step-by-Step Trading Strategy
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BUY
Step-by-Step Trading Strategy
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BUY
Step-by-Step Trading Strategy
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BUY
Step-by-Step Trading Strategy
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Step-by-Step Trading Strategy
1. What is the trend of the stock?Consider the use of MA (overlay)
to identify trending stocks
2. Use indicators to time entryConsider the use of at least two
indicators to assess the time of
entry
3. Identify current support and
resistance levels
4. Based on individual risk /
reward appetite and entry
pointsBEstablish stops/trailing stops and
potential take-profit levels
5. Set price alerts
Steps to considerB.
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Using MACD histogram to time the
entry points
Step-by-Step Trading Strategy
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Simple dual indicators
strategy
Step-by-Step Trading Strategy
MACD histogram
buy signal
MACD indicator
buy signal
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Step-by-Step Trading Strategy
MACD histogram
sell signal
MACD indicator
sell signal
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Comparing the
Stochastics indicators
with different lookback
periods
Step-by-Step Trading Strategy
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3333
Step-by-Step Trading Strategy
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Step-by-Step Trading Strategy
1. What is the trend of the stock?Consider the use of MA (overlay)
to identify trending stocks
2. Use indicators to time entryConsider the use of at least two
indicators to assess the time of
entry
3. Identify current support and
resistance levels
4. Based on individual risk /
reward appetite and entry
points&Establish stops/trailing stops
and potential take-profit levels
5. Set price alerts
Steps to considerB.
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19.2%
7.2%
Potential Reward/Risk Ratio-> 2.6 : 1
Step-by-Step Trading Strategy
Target S$0.62
Risk Level S$0.485
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Outlook Of The STI Index
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Potential trading range: 3215-3475
Outlook of the STI Index