Place for all future traders
------fkli2u@gmail.com------
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** Information above are personal finding and not represent the official release by the trading house. All information above subject to change without prior notice from publisher nor trading house. Any update from anyone is much appreciated. Enjoy Trading House DMA Rate Normal call in rate Platform Monthly Fees AmFuture RM36 RM40 RM250 **rebate if minimum number of lots transacted per month Philips Future 25% cheaper than normal market rate Normal market rate Free ** DMA for Malaysia future market only available from May 2009 onwards. Philips Future will launch DMA by end of Mar 2009 for overseas future market. RHB Investment ** Still in testing mode, will only launch it in the middle of the year. No information on rate as well as platform fees HAPPY TRADING
FKLI moving along 888-893.5 with few times of support line testing @ 888 with volume 32% lesser than yesterday. FKLI finally closed @ 893.5.
Today in the chat room a honourable member "asiatrader98" mentioned about gap trading. That is a new term for me and I've did some research on gap trading. I'd like to take this opportunity to share information I found and hopefully it can benefits other. Hope you like it. Gap trading is a simple and disciplined approach to buying and shorting stocks. Essentially one finds stocks that have a price gap from the previous close and watches the first hour of trading to identify the trading range. Rising above that range signals a buy, and falling below it signals a short. A gap is a change in price levels between the close and open of two consecutive days. Although most technical analysis manuals define the four types of gap patterns as Common, Breakaway, Continuation and Exhaustion, those labels are applied after the chart pattern is established. That is, the difference between any one type of gap from another is only distinguishable after the stock continues up or down in some fashion. Although those classifications are useful for a longer-term understanding of how a particular stock or sector reacts, they offer little guidance for trading. For trading purposes, we define four basic types of gaps as follows: A Full Gap Up occurs when the opening price is greater than yesterday's high price. In the chart below, the open price for June 2, indicated by the small tick mark to the left of the second bar in June (green arrow), is higher than the previous day's close, shown by the right-side tick mark on the June 1 bar. A Full Gap Down occurs when the opening price is less than yesterday's low. The chart below shows both a full gap up on August 18 (green arrow) and a fullgap down the next day (red arrow). The next chart depicts the partial gap up on June 1 (red arrow), and the full gap up on June 2 (green arrow). The red arrow on the chart, below, shows where the stock opened below the previous close, but not below the previous low. In order to successfully trade gapping stocks, one should use a disciplined set of entry and exit rules to signal trades and minimize risk. Additionally, gap trading strategies can be applied to weekly, end-of-day, or intraday gaps. It is important for longer-term investors to understand the mechanics of gaps, as the 'short' signals can be used as the exit signal to sell holdings.
A Partial Gap Up occurs when today's opening price is higher than yesterday's close, but not higher than yesterday's high.
A Partial Gap Down occurs when the opening price is below yesterday's close, but not below yesterday's low.
FKLI started 8 points lower @ 876, recovering but moving arround within 882 level. FKLI moving higher in the late afternoon with 52% higher volume than yesterday and close @ 887.5.
I've been looking arround in the market for broker/trading house which provides DMA (Direct Market Access) which allows future traders perform online trading without going thru a broker. As explained in "DMA For Future Market - Part 1", benefits of using DMA includes speed of transaction execution & most importantly lower brokerage cost. So who are the local (Malaysia) trading house that provides DMA?
FKLI experienced rebound from last Friday drop with positive sentiment from stronger USD/MYR. FKLI closed at 6 points higher and 8104 lot transacted. Charts above shows the immediate resistance at SMA(20) 885 follow with SMA(100) 899.
What is Direct Market Access (DMA) As the name suggests, using DMA, and entity can trade directly in an exchange - just likes brokers do. There is no need to place an order through a broker. Advantages of Direct Market Access (DMA) Speed The main advantage of DMA in that it results in faster order placement and execution. Till now, the institutions had to convey their orders to a broker, and the broker would place the orders. This means that the same information had to be conveyed twice, which resulted in delays, and, at times, errors. Now, with Direct Market Access, the institutions would be able to place the orders directly in the market. Cost Saving Cutting down an intermediary would result in significant cost savings for the institutions. Enable Algorithmic Trading Since the institutions would be allowed to access the market directly, they can now develop and deploy computers running complex mathematical algorithms, which would place buy and sell orders automatically. This would be a totally new avenue, and in the future, even mutual funds specializing in algorithmic trading can be introduced.
Date 21 February 2009 (Saturday) Venue Kompleks Masyarakat Penyayang Jalan Utama 10460 Penang Time 9:30am – 12:45pm Admission Free (pre-registration is a pre-requisite)CIMB is conducting a seminar on market outlook. Detail as below:
Click here to view programme.
For registration, please email us at itradepg@cimb.com or contact us at 04-2385 938 by
19 February 2009 (Thursday)
FKLI open low yesterday morning resulted from DJ red a night before. It touches Fib 23.6% following with retracement upwards but not over Fib 38.2%. With only 0.04% minor DJ recovery on 18 Feb it doesn't bring any significant impact and FKLI will remain bearish and volatile. Immediate resistance @ 895, 900 and support @ 888, 882
FKLI rally with mostly downward and closed 17.5 pts lower from 904 to 886.5. Total transaction volume was 5784 which is higher than volume on 16 Feb 2009 @ 3719.
Pre-opening for the afternoon trading session on the Bursa Malaysia Securities and Derivatives market will be as follows:
Equities market
Derivatives market
1. Equity linked (FKLI, OKLI & SSF) and financial products
2. Commodity derivatives products
However, the FTSE Bursa Malaysia indices (FBM indices) will not be available to the market for the time being.
All market participants have been duly notified.
Pre-opening on the Bursa Malaysia Securities and Derivatives market will be delayed for the afternoon trading session until further notice. The Exchange is still working to resolve the problem encountered with its price dissemination system.
All market participants have been duly notified and will be updated of the progress.
All market participants have been duly notified and will be updated of the progress. Bursa Malaysia is investigating the problem and will notify the market of any updates.
Technicians utilize a three dimensional approach to market analysis which includes a study of price, volume and open interest. Of these three, price is the most important. However, volume and open interest provide important secondary confirmation of the price action on a chart and often provide a lead indication of an impending change of trend. For beginning students of the market these two concepts tend to be somewhat confusing but are very important concepts to understand in- undertaking a thorough analysis of market action. Volume represents the total amount of trading activity or contracts that have changed hands in a given commodity market for a single trading day. The greater the amount of trading during a market session the higher will be the trading volume. As mentioned earlier, a higher volume bar on the chart means that the trading activity was heavier for that day. Another way to look at this, is that the volume represents a measure of intensity or pressure behind a price trend. The greater the volume the more we can expect the existing trend to continue rather than reverse. Technicians believe that volume precedes price, meaning that the loss of upside price pressure in an uptrend or downside pressure in a downtrend will show up in the volume figures before presenting itself as a reversal in trend on the bar chart. Open Interest is the total number of outstanding contracts that are held by market participants at the end of each day. Where volume measures the pressure or intensity behind a price trend, open interest measures the flow of money into the futures market. For each seller of a futures contract there must be a buyer of that contract. Thus a seller and a buyer combine to create only one contract. Therefore, to determine the total open interest for any given market we need only to know the totals from one side or the other, buyers or sellers, not the sum of both. Each trade completed on the floor of a futures exchange has an impact upon the level of open interest for that day. For example, if both parties to the trade are initiating a new position ( one new buyer and one new seller), open interest will increase by one contract. If both traders are closing an existing or old position ( one old buyer and one old seller) open interest will decline by one contract. The third and final possibility is one old trader passing off his position to a new trader ( one old buyer sells to one new buyer). In this case the open interest will not change. By monitoring the changes in the open interest figures at the end of each trading day, some conclusions about the day’s activity can be drawn. Increasing open interest means that new money is flowing into the marketplace. The result will be that the present trend ( up, down or sideways) will continue. Declining open interest means that the market is liquidating and implies that the prevailing price trend is coming to an end. A knowledge of open interest can prove useful toward the end of major market moves. A levelling off of steadily increasing open interest following a sustained price advance is often an early warning of the end to an uptrending or bull market. The relationship between the prevailing price trend, volume, and open interest can be summarized by the following table. It is important to understand that the commodity price chart only records the data. In itself, it has little value. By monitoring the price trend, volume and open interest the technician is better able to gauge the buying or selling pressure behind market moves. This information can be used to confirm a price move or warn that a price move is not to be trusted. This will provide you with valuable information to develop a suitable pricing strategy and an appropriate production-marketing plan for your farming operation.PriceVolumeOpen InterestInterpretationRisingRisingRisingMarket is StrongRisingFallingFallingMarket is WeakeningFallingRisingRisingMarket is WeakFallingFallingFallingMarket is Strengthening
This is an indicator used in charts and technical analysis. It refers to the average volume of a security, commodity or index constructed in a period as short as a few minutes or as long as several years and shows trends for the latest interval. As each new variable is included in calculating the average, the last variable of the series is deleted.
This has to be one of the most important tools for our indicators. This is where you select the moving average period to apply to the volume. Normally, volume can be somewhat turbulent and you may see surges here and there due to some large trades. With the volume moving average (VMA) you can smooth out those fluctuations so you can see where the general direction of the volume is going (i.e. increasing or decreasing).
Generally, when an index decreases and a volume moving average increases at the same time, you can expect a reversal in the index at the point the VMA surge peaks and begins to decrease again. The same is true for when an index is increasing.
Below is a list of recommended VMA settings for every period in our charts. We recommend the following VMA settings because they tend to work the best in showing signals of future market trends.
| Table #1: Recommended VMA settings
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Be careful! You should not set the volume moving average too high or too low, as you will either smooth out the volume too much or make it too erratic. For example, on a 5-day chart, a 60-minute VMA works best, and for a 1-day chart, a 30-minute VMA works well.
 USD vs MYR |
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