Danger signs

There are some danger signs that traders need to remember when executing active tradings during bullish period as we are experiencing right now..

KLCI now is in the fifth month of its rally. Based on historical performances, major reversals take place after five to six months of upward closes rallies. Therefore, we may expect a reversal to happen this month January 07. If it does not reverse, it can turn into a 10 month rally.

So a clear sign of reversal is needed to confirm this, and since there is still no such sign, we have to wait for the market to develop it.

Then, from the volume indicator. When the daily volumes hit a certain peak or resistance, the market may exhaust and is normally followed by a correction. So far, when the volume peak to 2 million + per day, the correction follows.


Other sign that we need to aware is when there is large interest from the public about the stock market. You must ready to back off when u heard fisherman, Watson's staff, security guard, mat rempit already start talking about their gains from stocks. :)

Source : The Internet