Tuesday, November 4, 2008

Third Liners Moving. Indicators KL Composite Going for Corrections?

Another good day happen in the share markets today. Basically today market movement should be treat as a lesson for us in the future. Most of the third liners were moving up and indeed it surprised me again. I saw it happened last time during a share market collapse but we as a human being cannot remember it what have really happens when the share market rebounded last time.

It happens before in 1997 Asia Financial Crisis when the share market experiencing a heavy sell off. Last week after most the second liners and blue chip were moving up and continue to do so until yesterday (Monday), the third liners follow through today after the share market started to rebound last Thursday.

Today I would like to pen it down for my record purposes as I think I might use it as guidance for me to trade in the future.

This kind of behaviour happens last time when all the sudden third liners reacted strongly and started to move higher. Today it happens again and it will happen in the future. A check on most of the second liners shows that there were already lose their momentum and a correction will emerge anytime from now in order to adjust with the high volume recorded in last 3 trading days.

One more thing we need to remember, when most of the third liners are moving up; the share market will eventually start to enter into a correction mode. History already proven that whenever third liners moving up most of the time - correction will follow through.

I don't whether what I have mentioned here can be consider correct or accurate but basically it appear to be correct all the time. This was based on my past experience and involvement in the share market.

As I would like to mention again, this is just my points of view and cannot be consider accurate all the time. I just think that I would like to share whatever experienced I have it in the past.

2 comments:

Anonymous said...

It could be true, I still remember in those days whenever stocks like AP Land, LienHoe, L&G appearing on the "Active list"...

The game is about to over..

Today "doji" is seen on KLCI chart !

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