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Disclaimer…The subject matters expressed above is based purely on technical analysis and personal opinions of the writer. it is not a solicitation to buy or sell.

Ladder top is a bearish trend-reversal pattern indicating the reversal of an existing uptrend. It is a five candlestick pattern which is less popular than bullish ladder bottom pattern and is somewhat similar to bearish deliberation candlestick pattern. Bearish ladder top is a moderately reliable pattern.


The requirements of bearish ladder top pattern include,
 

• The pattern should form at the top of a strong uptrend.
• The first three days are bullish days noticeable with long white/colorless candlesticks that close above the previous ones. This formation is similar to three white soldiers pattern which is bullish and formed at the bottom of a downtrend.
• The fourth day is also bullish with a small real-body candlestick with a long lower shadow; it is a hanging man candlestick.
• The fifth day is a bearish day, noticeable with a long bearish (dark or colored) candlestick which opens below the real-body of the fourth day candlestick.

Ladder top candlestick formation occurs when bulls lose control over the markets. The bullish candlestick on the first three days indicates that the bulls are controlling the market but the hanging man candlestick creates doubts on their minds. Traders start to sell-off their positions but the increased buying activity at the end of the day helps to close the day on a new high. The bearish candlestick on the fifth day indicates that the bears are taking control of the market and a new downtrend is beginning.

With ladder top candlestick pattern, trades should wait till the price crosses the low of the fifth candlestick.

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Disclaimer…The subject matters expressed above is based purely on technical analysis and personal opinions of the writer. it is not a solicitation to buy or sell.

Williams %R, or simply just %R, is a momentum indicator popularly used by traders to find overbought and oversold levels. The indicator is similar to the %K of Stochastic Oscillator; the difference is that %R compares close to the highest high of a period opposing the lowest low as in stochastic oscillator. The formula is,

 

Where 't' represents today and n represents the number of periods.

Unlike most other indicators, Williams %R indicator has a negative scale; the values range from 0 (highest value) to -100 (lowest value). A close nearer to the highest high period will take the indicator nearer to 0 (overbought) and a close nearer to the lowest low of the period will take the indicator nearer to -100 (oversold). The typical period is 14, but traders can adjust it to make the indicator more or less sensitive.

Generally, values ranging from 0 to -20 are considered overbought and those from -80 to -100 are considered oversold. But often overbought does not mean it's the time to sell, or oversold does not mean it's the time to buy, because in strong trends the prices can remain in one range for an extended period of time. Traders should trade in the direction of the trend. During the periods of strong uptrend, traders can buy when the indicator falls to oversold values; and during strong downtrends, traders can short when the indicator shows overbought readings. Bullish and bearish divergences are also good signals, crossing of -50 from below or above.

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Disclaimer…The subject matters expressed above is based purely on technical analysis and personal opinions of the writer. it is not a solicitation to buy or sell.

I have recently clearly my lots at sinotechfibre at 0.18 cents and bought ChinaOilfield. (SGX)

Guess it is still to early to cleared my lots in sinotechfib the chart line is still moving up. However i have already made my margin when it dip at 0.145cents.It is still a good chance this counter will move up to 0.195 cent further and there might be a resistance at 0.195 cents.

Why than China Oilfield Technolog crazy me those who bought it few weeks back at 0.155cents to 0.16cents congratulation there are the dare devils,there could easily dispose it for 018 cents now. Myself i am entering a little late at 018 cents on this counter.

Presently their audit accounts shows negative or revenues decreased. However if we look at China as a whole She is hungry for commodities to fuel its growing economy sectors in oil, coal, iron ore,gold are few examples.

Chinaoilfield also have equipment and products that are used in oil recovery There also have book value orders (according to their website) once their technical issues are resolved.

China Companies has recently invested in oil-sands projects in Canada , kazakhstan, Iraq etc.

Looks like even if crude oil dips below 80USD it is a good chance there would invest in oil field equipments.

My target sell at 0.25 to 0.29 cents or hold a while longer. My concern Chinaoilfield might consolidate the shares even with their strong reserves since there also have a business plan to expand their manufacturing plants which is on hold.

Good luck in your trade

ezy

A recent article i picked up

extract :

if you like China, you should also like...

• Brazil. Its massive amounts of mineral resources, fertile farmland, and oil are perfect complements to what China needs to grow. There’s a reason why Jim Rogers has been flogging Brazilian farmland as one of the best investments for the next couple of decades.
• Australia. This is one of Ted Peroulakis’s (Options Power Trader) favorite bets for 2010. He says that "Australia is a natural resource powerhouse with large deposits of coal, iron ore, and uranium. On China’s doorstep, it’s perfectly positioned to benefit from its huge neighbor’s modernization efforts."
• Oil. Imagine how high oil prices will go as the Chinese start buying cars. Ted says they’re moving rapidly in that direction. As a matter of fact, China recently surpassed the United States as the world’s largest passenger vehicle market.
• Taiwan. If you marry Taiwan’s technology to China’s enormous customer base, you get a breakout market waiting to happen. Once every couple of years, these two countries sign an agreement that gives Taiwan more access to China than it had before. The next one (the signing of an Economic Cooperation Framework Agreement) is expected later this year.  
• Canada. I shared my thoughts about Canada with you late last year. Canada exports oil, coal, and minerals to China. It has also attracted a ton of Chinese money. Just last month, PetroChina won approval from the Canadian government to buy a stake worth $1.8 billion in two of Alberta’s oil-sands projects.And If You Don’t Like China?

If you don’t like China, it’s probably because its market has been subject to big swings in the last few years...

• Last year, China’s market was up 74%.
• In 2008, its market declined 64%.
• In 2007, it rose 97%.

One way to take advantage of the economy’s growth spurts while sidestepping the fallout when growth stalls is to invest in the dividend globals that have aggressively moved into China.

In Sound Profits’ portfolio of dividend companies, there are five companies rapidly increasing sales in China...

• The integrated energy company I recommended last month is up 3.7%.
• The consumer company I recommended last month is up 9.5%.
• The food company recommended last August is up 13%.
• The oil company added last July is up 36.2%.
• And the industrial conglomerate recommended last June is up 23%.

These companies have sales all over the world. If China’s economy goes into a deep freeze, they could feel some of the chilling effects – but just a fraction of the effects investing directly in a China fund or Chinese companies would have on your portfolio.

Invest Safely

Andrew Gordon

Investor's Daily Edge
Email us at: feedback@investorsdailyedge.com

Disclaimer…The subject matters expressed above is based purely on technical analysis and personal opinions of the writer. it is not a solicitation to buy or sell.