Biosensors: failed setup

As of now, the retracement setup for this counter has failed as of now Mar 13 1300. This setup can be dangerous as we’re trading against the trend. The counter has moved down 2 cent to 78 cents. Unless the counter can climb back to opening price to show a doji, else it’d be better to wait for another opportunity.

This brings me to a lesson learnt not too long ago. Always have a trading plan no matter what. This way you will be disciplined and not be affected psychologically, which is very important to a trader. This is also the reason why only a percentage of trader-wannabe eventually become one.

Another lesson learnt is to wait for MACD to showed divergence confirmation rather to anticipate together with stochastic crossover. Another tip is to only enter 1 hr before market close.

Not all counter is like F&N to move so fast.

I always remembered my friend motto: There’s opportunity everday. By reminding yourself this way, you won’t be to hot-headed and make another wrong move again.

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Post-market Analysis

2010Mar15-Biosensors

This counter is extremely bearish right now. If tomorrow drop 4% lower than neckline, it will mark a pattern formation called double top! However, the trend can also be side-way and hence it is better to wait for a lower high to form to short. Breakout strategy at neckline can also be used with high volume as confirmation but at higher risk.