Triangle Formation Theory

Ascending Triangle

The ascending triangle is a bullish pattern, which gives an indication that the price of the security is headed higher upon completion. The pattern is formed by two trendlines: a flat trendline being a point of resistance and an ascending trendline acting as a price support.

The price of the security moves between these trendlines until it eventually breaks out to the upside. This pattern will typically be preceded by an upward trend, which makes it a continuation pattern; however, it can be found during a downtrend.



Descending Triangle

The descending triangle is the opposite of the ascending triangle in that it gives a bearish signal to chartists, suggesting that the price will trend downward upon completion of the pattern. The descending triangle is constructed with a flat support line and a downward-sloping resistance line.

Similar to the ascending triangle, this pattern is generally considered to be a continuation pattern, as it is preceded by a downward trendline. But again, it can be found in an uptrend.

Cup & Handle Formation Theory

This pattern is a tea cup on a chart. This is a bullish continuation pattern where the upward trend has paused, and traded down, but will continue in an upward direction upon the completion of the pattern. This pattern can range from several months to a year, but its general form remains the same.

The cup-and-handle pattern is preceded by an upward move, which stalls and sells off. The sell-off is what forms the initial part of this pattern. After the sell-off, the security will basically trade flat for an extended period of time, with no clear trend. The next part of the pattern is the upward move back towards the peak of the preceding upward move. The last part of the pattern, known as the handle, is a relatively smaller downward move before the security moves higher and continues the previous trend.

The general rule is that the handle's downward movement can retrace one-third of the gain made in the right side of the cup. During this downward move, a descending trendline can be drawn, which forms the signal for the breakout. A move by the security above this descending trendline is a signal that the prior upward trend is set to begin.

Wedge Formation Theory

Falling Wedge

The falling wedge is a generally bullish pattern signaling that one will likely see the price break upwards through the wedge and move into an uptrend. The trendlines of this pattern converge, with both being slanted in a downward direction as the price is trading in a downtrend.




Rising Wedge

Conversely, a rising wedge is a bearish pattern that signals that the security is likely to head in a downward direction. The trendlines of this pattern converge, with both trendlines slanted in an upward direction.

Gap Fill Theory

Technically, all gap fills should be filled. The gaps could be big or small, its doesn't matter. If gap is filled, buying or shorting opportunities will present itself.

Jaya Holdings (big)

Totally missed out on this one. T5 is the date to look out for potential buying.


Wingtai (small)

Small gap fill at 1.68 to 1.75

Its going to be exciting

Breaking or broke


Federal
Levels: 0.3, 0.33, 0.35, 0.39



ASL Marine
Levels: 0.935, 0.98, 1.04, 1.07

CandleSticks Basic

Position Update

Asl Marine 0.955 (bgt 0.94)
EzionHlgs 0.73 (bgt 0.71)
Swissco 0.655 (bgt 0.665)
RafflesEdu 0.66 (bgt 0.65)
Olam 2.57 (bgt 2.60)

Existing Positions

EzionHlgs
NOL
WINgtai

New week- O&G stocks

ASL Marine

Levels: 0.915, 0.93, 0.98

Swissco

Levels: 0.64, 0.67

EzionHlgs

Levels: 0.685, 0.745, 0.790