Price Action Patterns That Work (Guest Post)

Price Action Patterns That Work (Guest Post)

When it comes to price action patterns, most traders will think of…

“Hammer”

“Shooting star”

“Engulfing pattern”

Now, these are easy patterns to learn for beginners.

But, if you want to take your price action trading skill to the next level, then you must master new price action patterns.

That’s why in today’s post, you’ll discover 5 price action patterns that work—so you can develop sniper trading entries to trade market reversals, trend continuation, and even breakouts.

Ready?

Then let’s begin…

This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with a username known as @Rayner and has 617 followers.

Price action pattern #1: False break

The false break is a reversal price action pattern that allows you to buy low and sell high.

Here’s why it works:

 

Imagine, the price makes a strong bullish move into resistance—and breaks out higher.

At this point, many traders have this thought process…

“The market is so bullish”

“Look at how big those green candles are!”

“It’s time to buy!”

So, this group of traders buy as the price breaks above resistance and their stop loss is likely below the previous candle low, below support, etc.

This means if the market makes a sudden reversal, you can agree that these cluster of stop loss will be triggered which puts selling pressure in the market.

Plus, if bearish traders step into the market and sell near the highs of resistance, you can expect the market to collapse lower and erode the gains it made earlier—that’s the power of the false break price action pattern.

Now that you’ve understood the logic behind the false break price action pattern, then here’s how to trade it…

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A Summary of Mapletree Logistics Trust’s EGM on 23 November 2020 (guest post)

A Summary of Mapletree Logistics Trust’s EGM on 23 November 2020 (guest post)

Blue chip logistics REIT Mapletree Logistics Trust (SGX:M44U) held its extraordinary general meeting (EGM) yesterday afternoon to seek unitholders’ approval on the proposed acquisition of 22 properties in China, along with 1 property in Malaysia as well as in Vietnam. Approval was also sought for its proposed issue of new units of the REIT as partial consideration for its China acquisitions, and also for the proposed whitewash resolution.

 

An Analysis of Mapletree Logistics Trust

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has 1442 followers.

Due to the safe distancing measures imposed by the Singapore government (due to the ongoing Covid-19 pandemic), the EGM was held in a hybrid mode – both online as well as offline (limited spaces available.) I have opted to attend the online version of the meeting as a unitholder and in this post, you’ll find a key summary of it, which I’ve compiled for the benefit of those who weren’t able to attend…

Presentation by Chief Executive Officer, Ms Ng Kiat

  • The following are details of the acquisition:
    • Acquisition of the remaining 50.0% stake in 15 warehouses in China, a 100.0% stake in 7 warehouses in China, 1 warehouse in Malaysia and also in Vietnam
  • Aggregate Agreed Property Value: S$1,509.2 million
  • Implied Net Property Income yield: ~5.2%
  • Net Lettable Area: 1,223,660 sqm
  • Committed occupancy rate: 94.7%
  • Weighted average lease expiry: 2.3 years
  • CEO of Mapletree Logistics Trust, Ms Ng Kiat, shared that the logistics industry have benefited from the ongoing Covid-19 pandemic, where demand for Grade A warehouse space have increased as a result of an increase in adoption of e-commerce.
  • She explained that 3 geographical locations which the REIT will be acquiring properties in (China, Malaysia, and Vietnam) have seen their GDPs staying resilient despite the pandemic. Also, these countries are also projected to see a strong growth in their urban population in the years ahead (which will lead to an increase in demand for modern logistics space.) Coupled with the limited supply of Grade A warehouse space in the 3 countries, Ms Ng added that represents an opportunity for the REIT, being a leading provider of quality logistics space in Asia-Pacific, to come in and fill the market gap.
  • On top of that, Ms Ng also shared that the warehouses’ locations are strategically located near local consumption hubs in under an hour, which is an important consideration for tenants in e-commerce businesses. Not just that, post-acquisition, the REIT will see new top 10 tenants (by percentage of gross revenue) in JD.com… (which will contribute 2.4%) and Cainiao (which will contribute 2.1%.)

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4 Key Things to Know about DBS & Lakshmi Vilas Bank (LVB) Merger (guest post)

4 Key Things to Know about DBS & Lakshmi Vilas Bank (LVB) Merger (guest post)

By now, you probably have heard about India’s central bank proposing a scheme to merge the ailing Lakshmi Vilas Bank (LVB) with DBS Bank.

Many investors have been crying foul about the bad deal etc. On the analysts side, there have been a mixed reaction as shown from the Biz Times article here.

But on an objective note, here’s 4 key things investors need to know about the proposed DBS – Lakshmi Vilas Bank (LVB) merger (there are plenty of snippets from various sources below and you can refer to the url links posted at the end).

This post was originally posted here. The writer, James Yeo is a veteran community member and blogger on InvestingNote, with a username known as @Smallcapasia and has 913 followers.

1) What led to DBS – Lakshmi Vilas Bank (LVB) merger?

This is believed to be the first time that the India central bank has turned to a foreign lender to rescue a failing local bank, in a move that took the industry by surprise.

Lakshmi Vilas Bank has been struggling with financial decline and red ink for the past three years. It incurred a loss of around $150 million in the 12 months to March 31. Its net worth has also shrunk while unpaid loans have increased.

India’s central bank advised LVB in September last year to reduce bad assets and bring in new capital.

However, after many months of futile discussion talks and sensing that things are deteriorating, The central bank stepped in to bail them out.

RBI (Reserve Bank of India) then did the following on 17 Nov 2020:

  • Imposed a one-month moratorium on LVB
  • Capped deposit withdrawals at 25,000 rupees and
  • Unveiled the proposed merger with DBS soon after.

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Turtle Trading Rules: Does It Still Work Today? (guest post)

Turtle Trading Rules: Does It Still Work Today? (guest post)

In 1983, two commodity traders, Richard Dennis and William Eckhardt experimented to see if trading is an inborn skill or it can be taught.

So they conducted interviews to find people who were the right fit.

A few lucky candidates were selected for the program—they were known as the turtle traders.

Next, Richard Dennis gave the turtle traders a fixed set of trading rules to trade the markets (using his money).

The result?

It was astonishing! Several turtle traders made triple-digit returns within a few short years and some even went on the set up their own hedge funds.

Clearly, the turtle trading rules worked well in the 1980s.

But the question is:

Do the turtle trading rules still work today?

Well, that’s what you’re about to discover in this post.

So let’s get started…

This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with a username known as @Rayner and has 617 followers.

Turtle trading strategy: The original rules and results

Turtle trading is basically a trend following strategy for the futures market.

Here are the rules of the turtle trading strategy:

  • Entry: Buy when the price breaks above the 20-day high
  • Stop loss: 2 ATR from the entry price
  • Trailing stop loss: 10-day low
  • Risk management: 2% of your account
  • Vice versa for short trades

Markets traded:

  • Bonds & Interest Rates: 30-Year US Treasury Bond, 10-Year US Treasury Bond, Eurodollar, 90-Day US Treasury Bill
  • Commodities: Coffee, Cocoa, Sugar, Cotton, Gold, Silver, Copper
  • Energy: Crude Oil, Heating Oil, Unleaded Gas
  • Currencies: Swiss Franc, Deutschmark, British Pound, French Franc, Japanese Yen, Canadian Dollar

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Upcoming: LIVE Market Commentary

Upcoming: LIVE Market Commentary

Now that Biden is slated to take up presidency come January 2021, Trump is not conceding defeat yet.

What does this mean for stock markets around the world?

You don’t want to miss this session. Register now.

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It’s time to join us for this upcoming LIVE Market Commentary featuring the Top Trader of the SG Active Trading Tournament 2020!

The Top Trader, TheBearProwl (Aaron Sim) had 28.14% total portfolio returns and won the tournament, beating 2,000 other participants.

He was also 2018’s SGX Bull Charge Stock Challenge Grand Winner.

Joining him on this panel is Dan Chang, our veteran community member. He is an investment specialist, and trading representative from PhillipCapital.

Get some interesting insights and updates on the current market conditions across SG, HK and US from their perspectives.

You don’t want to miss this session!

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The 7 Biggest Reasons Why Traders Fail (Guest Post)

The 7 Biggest Reasons Why Traders Fail (Guest Post)

Do you know why traders fail?

Why trading signals are important to new and professional traders

This post was originally posted here. The writer, Rayner Teo is a veteran community member and blogger on InvestingNote, with a username known as @Rayner and has 617 followers.

My YouTube channel was created in 2013.
The first blog post on TradingwithRayner went live in 2014.
And along the way, I’ve interacted with thousands of traders and the truth is…The majority of traders fail.

Here’s why…

You want to be spoon-fed without doing the work

“Hey Rayner, which is the best moving average to trade with?”

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Microsoft’s First Quarter 2021 Results Look Good (Guest post)

Microsoft’s First Quarter 2021 Results Look Good (Guest post)

Microsoft’s results seem good despite the pandemic.

Microsoft reports $36.9 billion in Q2 2020 revenue: Azure up 62%, Surface up 6%, and LinkedIn up 24% | VentureBeat

This post was originally posted here. The writer, Kyith Ng is a veteran community member and blogger on InvestingNote, with a username known as @kyith and has 1097 followers.

US tech giant Microsoft announced their Q1 2021 results yesterday morning.

They achieve per-share profit growth of $1.82, beating analysts’ expectations of $1.54 a share.

The after-market share performance was muted. In fact, it’s nearly 1.5% lower. But due to the broad market fall this morning (28th Oct) the stock is down almost 5% to $203.

It has been consistently drilled into my head at work that the market is forward-looking in theory. And in a few practical cases, it is the case. After-market movements reflect the general crowd’s sentiments towards their expectations of future cash flows.

Microsoft’s results were not too bad in Q1 2021.

  • Revenue was $37.2 billion and increased 12%
  • Operating income was $15.9 billion and increased 25%
  • Net income was $13.9 billion and increased 30%
  • Diluted earnings per share was $1.82 and increased 32%

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EC World REIT– Key Highlights of Q3& 9M FY2020 Results & My Thoughts (Guest Post)

EC World REIT– Key Highlights of Q3& 9M FY2020 Results & My Thoughts (Guest Post)

How is EC World REIT performing?

EC World Reit taps market for $630m, Companies & Markets News & Top Stories - The Straits Times

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has 1442 followers.

The following table is the REIT’s distribution per unit for the current quarter under review, compared to the same period last year:

Despite the Singapore Exchange allowing companies to switch to reporting its full financial results on a half-yearly basis, EC World REIT (SGX:BWCU) at the moment is still continuing to report its full financial results on a quarterly basis, along with declaring a distribution payout to its unitholders once every three months as well (however, that could change in the future.)

Aftermarket hours yesterday (09 November 2020), the China-based logistics REIT reported its financial results for the third quarter, as well as for the first nine-months of the financial year 2020 (ended 30 September 2020.)

As a unitholder of the REIT, I have studied its results and in this post, you will find key aspects about its latest financial results, debt and portfolio occupancy profile, as well as its distribution payouts, along with my personal thoughts to share.

Let’s begin…

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Singapore Savings Bonds SSB December 2020 Issue Yields 0.87% for 10 Year, 0.24% for 1 Year (Guest Post)

Singapore Savings Bonds SSB December 2020 Issue Yields 0.87% for 10 Year, 0.24% for 1 Year (Guest Post)

Here’s what you need to know about Singapore Savings Bond for December 2020

Big demand for Singapore Savings Bonds, Business News & Top Stories - The Straits Times

This post was originally posted here. The writer, Kyith Ng is a veteran community member and blogger on InvestingNote, with a username known as @Kyith and has 1102 followers.

Singapore Savings Bond is a safe way to save your money that you have no idea when you will need to use it, or your emergency fund.

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Budget 2021 – Amidst Malaysia’s Political & Economic Uncertainty (Guest Post)

Budget 2021 – Amidst Malaysia’s Political & Economic Uncertainty (Guest Post)

At RM322.5billion, Malaysia Budget 2021 is the largest budget in the country’s history. But will it pass?

amidst-malaysias-1

This post was originally posted here. The contributor to this article,@Denise is one of our many community members on InvestingNote.

While the World Bank has come forward to welcome the overall stance of Malaysia budget 2021, it is still unclear if the bill will pass.

Malaysian finance minister Tengku Zafrul Tengku Abdul Aziz tabled the 2021 national budget in parliament last Friday on Nov6; also the first budget under Prime Minister Muhyiddin Yassin’s administration.

But already, it appears the current administration is in for a bumpy road ahead. There are a lot of doubts if the budget is even able to pass because of politics.

In his budget speech, the Finance Minister has projected the economy to expand between 6% and 7% next year.
In response to that, Mr Anwar argued that the projections of development figures in the budget proposals were unrealistic and “not responsible”. He also commented that the budget was “misleading” and benefits cronies instead of the people.

Besides Anwar, The Pejuang party leader, Mahathir, also joined the disapproval of the budget in a Facebook post saying he wants it modified so that it is “more realistic”. His reasons were that the pandemic requires more money to be spent by the government, but it has also affected the Government’s revenue.
Mahathir further questioned where the money will come from, considering the deficit of about RM85 billion is much bigger than the development budget of RM69 billion.

Accordingly, there is a high possibility the passage of the budget would be blocked by Members of Parliament with a no-confidence vote against Mr Muhyiddin.

However should the bill is passed, these could mean the following for Malaysians and the economy:

i) Employee Provident Fund (EPF) account-holders will be entitled to withdraw up to RM500 per month, for one year from their EPF Account 1. Before this, account holders are only allowed to withdraw once they reach 50 years old.

ii) Certain sectors are bound to benefit from the budget 2021, and others not:

On a more positive side, the setback seemed to be avoided after the king pressed MPs from both sides of the political divide to support the Bill. It was the first time in Malaysia’s history that opinions have been sought from opposition lawmakers on the Budget’s formulation.

It is worth pointing out that the Government usually makes additional changes before the final bill is passed. After all, this is just the first reading of the budget.

Let’s hope Malaysia is able to tide through this crisis! 🇲🇾🙂 $KLCI(^KLSE.IN)

 

Once again, this article is a guest post and was originally posted on Denises profile on InvestingNote.

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