Wednesday, October 28, 2009

FKLI So Far

There is selling opportunity on FKLI previous week and we might looking at short set up if the price could make lower high. I will explain how to read and use candlestick effectively because not all candlestick signifies a meaning every time they appear.


FKLI Daily Chart
Alright, on your left is the FKLI chart with some annotation on it. The trick to successfully trade with candle formation is to get the reading on every extreme point of price / index, not in between them ! Candlestick alone is reliable when they reach extreme level and if you couple with leading indicator and oscillator it will increased the possibilities of a profitable trade. Example, 20th Oct was the candle (Doji) that catch my attention to go SHORT, but i will rather wait for another dip before I made my decision to go SHORT. Guess what it does dip 15 points from the point it open on 21 Oct. Dont feel bad if you did not manage to catch this trade because market manage to gap up and recover all over 15 points after that. Now let see  if this index can create a lower high. BTW, i am still bullish though.
Disclaimer: The author is not liable for any loss incur due to this write up and trade recommendations made by this websites.

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