trading strategies on utrade platform 2015-06 17
TRANSCRIPT
Trading Strategies on UTRADE Platform
(revised – June 2015)
Jeffrey Tan
+65 6590 6629
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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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5
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
1010
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
1111
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
1414
Where is MA the most
effective?
BUY
Step-by-Step Trading Strategy
15
Trendlines,
Support and Resistance
Step-by-Step Trading Strategy
1616
Simple Trendlines to identify
potential trends
SELL – support-turned-
resistance
BUY – trendline
acting as support
BUY
SELL
?
Step-by-Step Trading Strategy
1717
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 ?
1818
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
2020
Step-by-Step Trading Strategy
Lower high
Lower low
Higher high
Higher lows
?
Lower highs
Lower low
Higher high
2121
Complementary to use of
trendlines and moving
averages – checking to see if
the downtrend remains intact
Step-by-Step Trading Strategy
2222
Complementary to use of
trendlines and moving
averages – checking to see if
the uptrend remains intact
Step-by-Step Trading Strategy
23
Request for a stock from the
audience for another illustration
Step-by-Step Trading Strategy
24
Combining support and
resistance and trends
Step-by-Step Trading Strategy
2525
BUY
Step-by-Step Trading Strategy
2626
BUY
Step-by-Step Trading Strategy
2727
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
3030
Simple dual indicators
strategy
Step-by-Step Trading Strategy
MACD histogram
buy signal
MACD indicator
buy signal
3131
Step-by-Step Trading Strategy
MACD histogram
sell signal
MACD indicator
sell signal
3232
Comparing the
Stochastics indicators
with different lookback
periods
Step-by-Step Trading Strategy
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
Potential trading range: 3215-3475
Outlook of the STI Index