(Price Correction)
A correction is a reverse movement, usually negative, of at least 10% in a stock, bond, commodity or index to adjust for an overvaluation. Corrections are generally temporary price declines interrupting an uptrend in the market or an asset.
(Uptrend)
DEFINITION of ‘Uptrend‘ Describes the price movement of a financial asset when the overall direction is upward. A formal uptrend is when each successive peak and trough is higher than the ones found earlier in the trend.
(Position Entry)
Position Entry is the timing for an investor or trader to position they buying point onto a stock while pending for it’s price action and volume to take place riding the continuous trend.
(Trading Plan)
WHEN an investor or trader decides to position into a particular stock, he/she must prepare at 1) what price range is the entry pricing zone, 2) shall price reacts the opposite at what price range is the stop loss pricing zone, 3) as profits starts building up when to take profits.
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The good old days where the market were filled with abundance of easy money making were last seen from the month of January 2017 to July 2017 where we’ve seen the FBMKLCI creating higher highs for the past 7 months before the music stops.
The market correction kicks in the month of July 2017 before a rebound was seen that lasted for 2 months without creating any new highs. The month of September had brought the FBMKLCI into another round of market correction that puts the index at a support of 1751 now. It is okay as this support if were to be broken down we have another Critical Support at 1743. What comes below the 1743 mark will be nothing but a Bear Market definition.
Certainly in the financial market what goes up will come down and vice versa. The question of how high is high and how low is low are best to be left with everybody’s different opinions.
The current support of 1751 and 1743 are deemed to be a level of supports for the FBMKLCI to stage for a market rebound anytime within this week. Just as how the index had been through 1 month of market correction, general market stocks have been undergoing the same 1 month of price correction as well. Technically both the index and the stocks are at a level of oversold.
Shall the level of 1751 support are kept well above and stocks are seen to pick up their pace, the change of market sentiment shall awaken this Bull Market again in the month of October 2017.
“ Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.”
How Does EMA200days Works?
https://trendfollowingmalaysia.com/2015/06/18/how-does-ema200-days-works/
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THE THREE /// LINES TRADER (TFM) 