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The Magical Number of Pi and Stock Markets

6 May

There are some magical numbers and sequences of numbers that have their prints in the nature. They were there in the first place because God who created the whole universe encoded them just like His signature or autograph. Now, we might wonder, why is these magical numbers so important in our discovering of the secrets of the stock market trading and investing business? The simple and quick answer to that question is that these numbers resonate and vibrate in the stock markets, commodity markets and forex just as they are found in the universe that we live in. This is true for any financial markets. Before you discredit my claim of the magical number pi (π) and its application in making money in financial markets, take a good look of Fibonacci. This magical sequence of numbers of Fibonacci that starts from 1, 1, 2, 3, 5, 8, 13, 21, and etc, had been a very good technical indicator of when (time) and where (price) should the index futures reverses its trend. The number of pi (π) is so magical that its decimal portion is unique and there is no repetition of patterns. Just in case that some of you wonder what pi (π) is, it is a constant number where pi π = 3.1415926535897932384626433832795… The study of market cycles and market geometry uses pi (π) to pin-point the exact reversal date and price for stock markets and other financial markets. Here I present to you a video that sings out the magical number of pi (π).

Warren Buffett MBA Talk on Investing and Stock Market Wisdom

26 Mar

Warren Buffett is the richest guy in the whole world and his wisdom on stock market, value investing and corporate governance is priceless. Many people from all over the world come and listen to him. In this post, I will include Warren Buffett talk to MBA students on various topics ranging from business management to investing for growth. When it comes to value and growth investing methodology, Warren Buffett is the guy. This video is broken into 10 parts of smaller videos.

Warren Buffett MBA Talk – Part 1 of 10

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Time is the Cause, Volume is the Fuel and Price is the Result

4 Feb

There are many laws governing the financial markets just as there is gravity law to hold things together on the earth. One of the powerful financial market laws is summed up in this phrase "Time is the Cause, Volume is the Fuel and Price is the Result." There is a lot of market wisdom in this principle. If we could truly understand this, we could potentially unlock the mystery of the financial markets. In fact, if we look hard enough at the world that surrounded us, we could see patterns that conform to this universal law that works beautifully in the stock markets. In fact, I spent a lot of time researching into this phrase and would like to share some of my thoughts with you.

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Trend Analysis – The Core Fundamental of Technical Analysis

15 Jan

This entry is part 3 of 3 in the series Technical Analysis Guide 101 - Getting Started

Stock market trends offer the best profit opportunities. Position traders like to size up their investment holdings at the beginning of the trend and pyramiding it along the way as the trend continues. Stock market traders begin to dispose their equity holdings in stages when near the end of the trend as well as the beginning of the trend reversal stage. That is one of the profitable ways to trade the stock market. Financial markets trends also exist in various time frames simultaneously. Regardless of the types of strategies used in trading or investing in the financial markets, trend analysis is the core fundamental work of technical analysis and therefore it is our objective to spot trend as early as possible for maximum benefits and to reverse position once we have the confirmation of trend reversal.

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CPO Market Review: 2007 Bull Run Repeats in 2009?

8 Jan

In response to Moody comment, I decided to write a blog post to review the crude palm oil commodity trading from 2007 to 2009. Is there any different between the 2007 Bull Run and this coming rally at the beginning of 2009? If you look at the chart, I have placed a question mark there for us to consider what could be the Elliott wave count. How about chart pattern analysis for FCPO March contract? Let’s analyze the chart.

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Technical Analysis – The Highway Journey Concept

6 Jan

Many fundamental analysts discredit technical analysis as a financial market analysis tool. Some of the claims against technical analysis come from celebrity investors and their strong opinions have caused many newcomers to discount the credibility of this wonder forecasting and market timing tool. I am going to share one powerful and yet basic concept of technical analysis. I called this concept "The Highway Journey."

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Fibonacci Code in Nature and Stock Market

12 Dec

You and I can agree that there is such thing called the Law of Gravity. You throw an apple up into the air and it will eventually fall down to the ground. That is the law of gravity at work. Fibonacci is one of the wonderful codes that consistently appear in the nature, universe and even the stock market. It seems hard to believe that there is mathematical relationship that exists in the stock market that seems to be random. In fact the equity market is far from being random or chaotic. There is order to it just as there is order in the solar system. Time has proven again and again that Fibonacci, a sequence of numbers discovered by Leonardo of Pisa, works its magic by repeating patterns in the financial markets. It is a sequence of numbers beginning from 0, 1 where the next number is the sum of previous two numbers thus yielding a sequence of 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, and etc. If you look deeper, there is a ratio between the numbers of a fixed interval that approach the Golden Ratio of 0.618 and its inverse of 1.618. You can also discover Fibonacci Sequence of Numbers encoded inside the Elliott Wave Count. Again, you may be skeptical about this. Don’t push the theory aside until you really look deeper inside. I was once a skeptic but now am a believer and student of this wonderful stock market analysis tool called Fibonacci.

10 Market Analysis Techniques that is Profitable in Stock Market

9 Dec

I write this post for skeptics. If you are one of them, then please read on. Many beginners in the stock market don’t believe that market analysis techniques taught in the books, internet or any training from financial consultants or stock analysts do really work in the financial markets. In their mind they said that if it works, why are they teaching it and not keeping it unto themselves. To add to the doubts that they have, the methods taught seem to be strange and have little to do with the Main Street businesses. Well, I was one of them before but I do my homework to find out what really makes the financial market ticks. Here I will present 10 market analysis methodologies that work in the stock market and it also serves as a learning guidance for those who want to explore more of the equities, commodities or even forex markets. Anyway, it works.

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