Thursday, 28 October 2010

28oct2010 - FBM KLCI Sell on rally based on daily chart

(This is a feedback to a reader of cpofutures blog - title: Trend is a function of time - Daily FTSE Bursa Malaysia KLCI ( FBM KLCI ) chart with indicator like RSI had repeated same pattern of trend in July 2006 and July 2010...)

As Index Futures, FKLI, in Bursa Malaysia Derivatives technically moves in tandem with FTSE Bursa Malaysia KLCI or FBM KLCI which is considered as the cash market for FKLI. Therefore, judging on FBM KLCI trend may directly help to forecast the FKLI trend also.

Since the FBM KLCI provides a clearer picture for comment on market trend for the lesson, it is easy to help technical traders especially novice traders to improve their skill by referring the chart pattern which is always repeated itself so that they learn to follow a trend more confidently, and if they miss a trend, they still can learn to catch another trend of correction which allows to pocket some good money.