(Last Updated On: December 11, 2019)

So this is the kind of price chart SGX’s and SGX also has one of the most high average trade value stocks, it’s one of the highest average value trade stocks in Singapore. However, if you take a look at the chart from the angel of a longer term swing trader like myself, this is a very, very terrible chart to look at, or to analyze, or to look for trading setup.

What is the reason? Very simply based on those three key techniques that I look at, horizontal line, horizontal support resistance reversal, as far as trend lines, trend channels. You basically can’t identify any very clear cut ones in this particular chart itself. As such, from the angle of a longer term swing trader, this is actually a dumper, the kind of chart that I will not bother to draw any lines or to look for trading ideas in.

However, that is not to say that this chart or this kind of stuff is not suitable for all kinds of traders, because if you take a closer look, you will realize that this stock is actually a pretty volatile stock, especially when you look from the angle of a shorter term trading perspective. There are many, many occasions where the stock can run very quickly within one week, two weeks kind of timeframe. So if you actually go down to four hour or maybe even one hour chart for this particular stock, you might realize the trending characteristic might look very nice and it’s much more easier to identify a horizontal support resistant trendline, trend channels and supper resistant reversal phenomenon.

So as such, this could be a stock that is good for short term swing trading or maybe intraday trading, however, it is just not suitable for the kind of trader I am, which is longer term swing trading.

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Philip Teo

Founder & CEO at Traderwave Pte Ltd
Philip Teo is an entrepreneur, speaker and trading coach who specialises in the field of Technical Analysis of the financial markets. He is currently the Founder and CEO of Traderwave Pte Ltd, a financial technology company that offers a web charting application to global traders. He has conducted many trading seminars and appeared on national television before. He is also currently an official speaker and trainer with SGX Academy. Learn more about him at his Google+ Profile, LinkedIn Profile and Facebook Profile