Japanese Candlestick

[lithium]

Thanks for the reply San San.

Doji is not for me, percentage of accuracy very low. Or maybe I don't know how to use it.

Anyway, I think we are heading down. I continue to hibernate, this winter is very cold

[helios]

bro Lithium, you can wear (opt for) winter clothes ...

btw, do you know where i can get Steve Nelson's books? pdf.version?

any one knows?

[kennynah]

you can surely find this book in our libraries... if it is borrowed, you can reserve it for a small fee and have it sent the library nearest to you...

[helios]

ha ha ...

Ken ge, i thought you gonna lend me yours ...

[kennynah]

if i have it...i surely would.. san mei mei...

[profittaker]

Hi, how would you classify liquid and illiquid counters? Based on real dollar, what is the threshold that is used for this classification purpose?

to note that while the volume seems high and liquid, remember that this is a <S$2 stock.. it is very different when you see millions of shares traded on Goog, aUSD560/share counter... my point being that candles are useful only when there's sufficient liquidity and thus making it lesser manipulated, which will render candles read less useful...

i would be very careful about using candles on singapore listed counters, especially illiquid counters. in fact, TA is much less useful on these charts.

[kennynah]

subjective...i see it, i know...

[millionairemind]

I guess the definition of illiquid counters is all subjective.

I will check firstly the free float, then followed by how much the majority shareholders each hold.

Lastly and most importantly, the daily traded vol.

Say you have $100K to invest in a company. Its currently traded at $0.20/share. That means you can buy 500K shares of this company.

You check the free float and it looks fine.

However, you noticed that the daily traded volume is only 100K/shares... what do you do?

IMO, its an illiquid counter and I will not trade it.

Y? Cos' when you need to get out, there are NOT ENOUGH buyers to absorb your selling and you will be getting out at a REALLY BAD PRICE.

Of course, some retail "value investors" will come up with the mantra of buy and hold forever. That is provided they REALLY KNOW what they are doing. Unfortunately, most only know how to parrot this line but don't know what the hell what they are doing. There are a few in this forum who knows what they are doing. MW will be one of them

I only trade counters where I will at most form 10% of the average daily traded volume.

Here's an example of how when a majority shareholder needs to get out and the daily traded volume was not able to absorb the selling



Hope this helps.

[profittaker]

Thanks MM for the detailed reply.

[iam802]

Here's a chart that is pretty useful.

Bullish reversal - noticed how it shows that forex chart is slightly different than equity?

Bullish Reversal Patterns.png

Source: http://www.fxwords.com/b/bullish-pevers ... tml#strong