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Monday, April 6, 2009

FKLI Outlook 08 April 2009 >>> Stretching the indicators

FKLI : Away From The Norm >>> Be Experimental Be Innovative
Conventional chartist please stop your reading right here right now becoz what ZL will do next is liable to cause you hair loss and even to vomit blood.

The orthodox way to chart (under normal circumstances) is by implimenting default settings or regulated indicators & oscillators from the old school of thoughts adopting the normal Moving Averages & Fibinacci with MACD & RSI or Stochastics thrown in for good measures.

Is there a problem there? YES >>> you keep losing. LOL!!!

Redefining the Exponential Moving Averages (EMA) parameters
Your TA guru will surely had taught you how to use preset EMAs like 4 9 18 for short term, 14 21 31 for midterm and 30 50 100 200 for longer time frames. These bunbers are applicable for Simple Moving Averages (SMA) also.

Getting itchy with the Fibonacci
Fibonacci Retracement is a term used in technical analysis that refers to the likelihood that a price will retrace a large portion of an original move and find support or resistance at the key Fibonacci levels before it continues in the original direction. These levels are created by drawing a trendline between two extreme points and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.

In our FKLI's csse the highs and lows are as per below>>>

15 Jan 2008 >>> 1536.0

24 Oct 2008 >>> 803.5

The above high & low should be the FIBONACCI settings for any conventional user of this indicator. But this is not compulsory in this case ..... aaaahhhhhh!!!

Using Fibonacci Retracement for year 2009 only
ZL warned you might vomit blood and there is still time to stop reading now if you don't wanna end up in ICU or intensive care unit.

For this FKLI case study ZL shall place the Fibonacci Retracement for this year 2009 only aka FIBOEMA 21 34 55 89

Hey, where in the rule books that says we cannot experiment or innovate since Technical Analysis is known 2b subjective? Being orthodax does not guarantee correctness so, until the results are known >>> who wanna point a finger at ZL and says ZL will be WRONG? Your bet taken ...... Sorry there >>> not cocky but confident.

EMA defined for FKLI today case study shall be 21 34 55 & 89 which is part of the FIBONACCU numbers sequence >>> 1 2 3 5 8 13 21 34 55 89 144 233 >>> INFINITY.

See? ZL still play within the rules. I did not deviate, did I? So you have no reason to lynch me if ZL is proven WRONG.

Belum cuba belum tahu >>> Let the end result be the judge.

FKLI Spot Chart views
A Hammer formation which looks a little scary and even more scarier if you see the KLCI Hanging Man (HM) candlestick. This HM candle icon denotes a pullback or retracement which is what FIBO are all about.

With the normal Simple Moving Averages or SMA >>> The last FKLI candlestickl prices REBOUNDED OFF THE SMA 100 forming a Hammer in the process.

But why a FKLI HAMMER and not a KLCI HANGING MAN like the Composite formation? Candle icons definations of a HM >>>> the shadow must be at least TWICE the length of the real body which in this case is slightly INSUFFICIENT. A Hammer it shall stay.

Nevertheless, a Hammer can also act as a reversal signal during a rising trend but more potent if positioned at the TOP or the BOTTOM of a trend. This is MID TREND so hopefully some of it's potency is partially neutralised. If this Hammer formed at the PEAK or SUMMIT of the immediate trend then RUN & DON'T LOOK BACK. Or better still SHORT the FKLI for all it's worth.

Still, all things consider, there will be some corrections or profit taking . Hey, in case you forgot, profit takings are also pullbacks.

Back to the FKLI SUPPORT >>> The intraday (Friday) prices rebounded off the SMA 100 using the conventional settings. But look at ZL's FIBOEMA parameter settings >>>>

The FKLI also rebounded off my 2009 FIBOEMA 89 >>> FKLI 901.0. To substantiate the usefullness of the FIBOEMA just look WHERE the price sits the PREVIOUS candle ? FR 50% FKLI 888.0 %^$#&^$%!!!!!

Hence FKLI prices hv support at the 2009 FR 61.8% 901.0 & FR 50% 888. FKLI immediate target shall of course be the FR 100% 942.5 FKLI.
Note : Fibonacci Retracement % are set for 2009 year high & year low. This is to filter out the unnecessary NOISES from the year 2008. This is not the norm but about innovations from experimentations.


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