hsi wk 20170322

hsi 20170306 - buying low

Everyone in the markets knows that buying low and selling high are the key to make the most profit from the market. However, where/when is low or high enough? No standard answer. Some says when there is a blood-shed for a low to happen, a change in major trend, historical cycle low/high, etc.

One of my favourites is RSI 14-period that historical movements are ranged within 0 to 100. Certainly, it doesn't mean a high with RSI 100 moving to a low with RSI 0, which all depends the trends.

We can just try to buy at a "relative low" and/or sell at a "relative high" level, which is profitable enough in a trade. This is what we aim for and consider to bear some risk in the market. We are not scientists nor mathematicians who chase for ideal case or perfection.

If we look at RSI on a monthly chart, it reveals a way for most people who are patient enough to wait for a relative low to buy. However, to predict a high to sell, I am not confident to mark a specific range as it really depends whether the market is in a bearish or bullish cycle.

hsi 20170302

http://koei1024.blogspot.hk/2017/02/hsi-td-20170221.html
- 3 signals observed
- in addition, a re-test at the white trend line

Furthermore, from its weekly chart:
- a potential double top (two red arrows)
- a potential evening star (white circle)