Caution! MACD of FKLI Hour Chart Heading Downwards

It looks like FKLI might head lower since MACD of hourly chart is going down. At this point, a break out system will not work due to the volatility of the market.

Stop Loss Reached At 1582

Date of entry: 7 March 2012
Short FKLI March 2012
I shorted FKLI March 2012 at 1577 for one contract. It opened with a gap down indicating a weakness of the market. I would have shorted at 1574 (opening price) but I was late and it turned out a better price.
I am using 30 minutes chart for my future trading now. I will focus more on the overall trend.

Date of exit: 9 March 2012
Stop Loss Reached At 1582
I stop loss was reached at 1582 with a loss of 6 points (1 point added for commission).

The Loss: RM 300 (6points x RM50 x 1contract = RM 300)

Still Working On Different Set Up

In case you wondering what I am doing now, well, I am still testing out many method; researching, analyzing and back testing on trading Cpo futures using different type frame like 15 minutes, 30 minutes, 1 hour, 2 hours, 4 hour and daily charts. 

What ever I used, they all could not produce me a consistent returns; some time good and some time back. It is hard to obtain the optimum set up. 

So far, 30 minutes chart seemed convention. It is not an optimum set up, but at least it is more consistent.

KLCI - 3rd Bullish Candle In A Row

Kuala Lumpur composite index closed at 1530.73 with a little up of 11.82 points against last year 2010 KLCI which was closed at 1518.91. It was a roller coaster year for 2011. All tension was built up by two big brothers; US and Europe.

Week to week, KLCI had been up for 3rd week forming three white bullish candles in a row. There is high chance that the market will correct at least for one or two candle then decides the direction later.

I would wait for the opportunity to short FKLI (Kuala Lumpur Future Index) based in daily chart.

FKLI Daily Chart - Hitting Moving Average Support

FKLI touched moving average low of 1538 based on daily chart indicating that the current sell down could be at least stabilizing around this area. Of course, further confirmation is needed.

The Ugly Picture

I stopped trading FKLI today just wanting to take a break like 华仔 recommended earlier.
Looking at the daily chart of FKLI. Wow! The chart really was ugly; one day up and one day down, one day gap up and one gap down. Trend trader like me is having hard time with situation like this. Swing trader will be laughing all the way to the bank.

10 Points Profit Target For FKLI

I did lots and lots of back testing over the weekend and I found out that setting a 10 points profit for each trade seems to be a good way.
I initially did not believe it thinking that I should let the profit run. Out of so many trades for the period of 6 months (based on FKLI 2 hourly chart), 20 points and above gains only occur few times; 4 times actual. We are dealing with probability. If the market has a higher chance to hit 10 points rather than 20 points, why must I try to achieve 20 points and at the end, I got even lesser because the market turn around.

At the time of writing this article, the market continue the plunge for another 13.5 points to 1471. I could have exited at 1475.5 with a pretty profit of 10 points and that's it. Sounds Good right?

Illiquid Market Can Kill

FKLI June 2010 Contract made a sudden drop to 1269.5 and bounded back to current level of 1296. With China having holiday for 3 days (Monday to Wednesday) and world cup matches going on, the markets are quiet. Illiquid market can really kill. Luckily I did not put any orders from yesterday.

Waiting to Short Future Index

Date: 20090517 Still Waiting and Watching
I am still waiting for the KLCI to close below the moving average both the high (Green Line) and the low (Purple Line). Both Daily Stochastic and Weekly Stochastic are now down. Shorting seems to be a better chance of making big buck. However, if the price keeps going up and breaking the recent high, I will turn long again. I am using KLCI as reference to decide on my long and short actions of Future Index




The bull have been strong up till now. There no sign of weakening except that Daily Stochastic and Weekly Stochastic (refer to KLSE Daily and Weekly chart). And also index hold well above the moving average (the high and the low).
I will base on the KLSE composite index as reference for my future shorting action. If index breaks below the recent daily low of 1013 registered on 12 May 2009, there is high chance that the trend will turn down. I will short future index. A piece of FKLI chart is attached for reference.
Of course, this action of shorting has to be temporary as the overall trend is still up. A close stop loss should be used.

Party Over?

FKLI April 2009 Future Contract closed at 966 with the low of 962 which is near the moving average low of 958. There is high chance that the market will slow down the plunge for the time being. Sideway could be ahead of us. Swine Flu kids in, this is a chance for market to rest at least for now. I am looking into the price action very closely. If it could further go down and below the moving average low, I will get ready for shorting the market all the way down. Let's see the development in the few days.
I will not assume what the direction of the market will be, I will only let the price movement (action) to lead me.

KLSE At OverBought Area

I am waiting for KLSE to go below 907.87 registered on 8 April 2009 then I will short future index FKLI April 2009 contract. As stochastic is at the overbought area (refer to chart).

FKLI 15min Chart: SIDEWAY WAITING FOR BREAKOUT

20090407 FKLI April 2009 Contract closed at 917.50. Looking at the pattern of the 15 minutes price movement, the market is at the side way. I am waiting for the break out (Ups or Downs) to do my action. (Refer to chart)