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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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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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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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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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In the jungle of financial markets, one of the compasses to guide us in making better trading decision will be the chart. Chart analysis is the heart of technical analysis and it is getting more popular in these days compared to Time and Sales (T/S) as it provides visual perspective to the financial market action. In this post, we will take a look at various stock price charts and their characteristics. Basically most stock price charts contains the following information such as asset name or company name, date and time of trading transaction, last traded price and volume. Price information can further be divided into opening, high, low and closing prices for the recorded time session. However some charts may not incorporate all the information for their interpretation to filter out financial market noises.

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In this introduction series, we will explore technical analysis (TA) as one of the methodology that is commonly used in stock market analysis. In TA, we will study the balance of demand and supply ratio and its strength using various tools available. One of the common pitfalls of newcomer in stock investment and speculation field is that they either attempt to use a single market analysis tool in isolation or crowding their stock charts with too many indicators. You heard the common sense phrases that things don’t exist in a vacuum and too many cooks spoilt the soup. All we need is the tools that are working for us.

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Fundamental analysis (FA) is the methodology used to evaluate the fundamentals of any asset class such as business. Valuation will be perform on the business by studying the balance sheet, income statement, cash flow statement, gearings, competitive advantages, management team and many other factors that might influence the prospect of the company to derive to an estimated value. The derived value and other factors will be use in the investment decision making process.

Technical analysis (TA) is the methodology used to determine the balance and the strength of demand and supply of a particular asset class such as company shares. Evaluation is perform on the historical data mainly price and volume to interpret the direction of the stock prices and also to project the future prices. It works on the basis that history tends to repeat itself. Key concept of technical analysis would be the direction of trend and also the support and resistance level. As commonly phrased by any TA practitioner, the trend is your friend.

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