GADANG (9261.KL) : Breakout !!! Accelerating up from RM 1.50 to RM1.60/1.70/2:05

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I am a typical trader in stock,commodity and Forex exchange market, hence I learned many type of indicator, chart pattern, price vs volume action, trading strategy, emotion control, money management and etc,.,.with all the information and knowledge I acquired is just insufficient for me build a trading plan, but it not allow me to make some consistence income, until one day I meet a  trader(I call him Brother) who are willing to coach and share with me about his N years trading experience with real time coaching... thing change and my results improved exponential...
Some of the key take away message and I learn from my brother is
1. Trading is dealing with Fear, greed and ego,
2. The worse enemy in trading is EGO, if we are wrong in analysis, cut the loss and move on to next.
3. Be humble and it is key character to be successful trader...
4. Successful trader is less Emotion.
5. etc...

Weekly Chart

1st thing 1st !!! I like to look at the weekly trend to determine the direction of the stock, right after observed potential growth stock in small time frame, Because it is very crucial to increase winning probability.

Chart # 1

The chart # 1 above is weekly trend,
1.) We can see it was just completed correction wave, I label it as (A), (B) and(C), what does it means ABC correction ended ? typically for next couple of week should form an impulse wave up. which is wave 1 uptrend to min of RM 1.80.
2.) Bullish divergent formed, it is a indication of bear strength is weakening and bull power is taking over.
3.)Morning star appeared at the Wave (C). it is a strong indication bottom already reached.
4.)Volume is picking up on last weeks and prices is accelerated which is a strong buying interest established.

Daily Chart

Let unfold the chart from weekly down to daily. each of the impulse wave typically had internal wave structure.

Chart # 2

Refer to the chart # 2 above, I did label (Blue Box)Wave (3)'s internal structure with magenta color front for the learning purpose, you can see an complete wave counter is started with impulse Wave 1,2,3,4,5 and ended with correction wave ABC, right after the correction wave down ended, the impulse wave up with begin.

Chart # 3

Refer to chart # 3, the blue box is indicate latest wave degree
1.) Major trend wave 2 ended with ABC, Wave 3 up projection will be RM 2.8
2.) Med term trend is forming wave (1) up, the projection will be RM 1.8/2.05
3.) Short term trend is forming wave 3  up, the projection will be RM 1.6/1.75/2.05

3 consecutive wave degree is pointing to north and it is bullish implication, this type of trading opportunity is classified by me is aggressive type, because combine a Bottom fishing( Major and med term trend), with (short term) wave 3 breakout strategy.

In summary, 3 consecutive wave degree is pointing to up trend, it is bullish implication.

Chart # 4

Chart # 4 above is showed resistance RM 1.45 broken and headed to downtrend trend-line, I am anticipated it will breakaway from RM 1.52 and heading to RM 1.60 and RM 1.75, reason was short term wave 3 was formed after it break away from resistance RM 1.45.

Support Resistance 

Resistance # 1 : RM 1.62
Resistance # 2 : RM 1.70
Support # 1 : RM 1.50
Support # 2 : RM 1.45
Support # 3 : RM 1.31

Projection

1.) Major trend wave 2 ended with ABC, Wave 3 up projection will be RM 2.8
2.) Med term trend is forming wave (1) up, the projection will be RM 1.8/2.05
3.) Short term trend is forming wave 3  up, the projection will be RM 1.6/1.75/2.05

Technical Justification on bullish implication 

1.) Long correction wave ABC trend ended with bullish divergence
2.)Med term wave 1 and short term wave 3 is forming and point to go up
3.)Weekly chart formed morning star and MCAD cross signal is developing.
4.) Down-trend trend line is challenge/Breal by the wave 3 up. most likely prices will accelerate up.

My Trade plan

I will scale in as I am anticipated it will breakaway from down-trend line, I will collect on any weakness near support area which RM1.50 and RM1.45,

MY Profit will be near all Resistance and Projection point which were RM 1.60/1.70/1.75/1.80/2.05

My Stop loss price drop below RM 1.30

Trading Challenge

Many people committed to buy stock is very easy, when come to profit taking and cut loss is one of the most difficult part in trading world, talking about profit taking is dealing with greed and stop loss is dealing with fear, cutting loss is a must in trading world because it stopping my capital continue to loss, in order to stay alive in trading world... it is a must !!! it is not an option, else I suggest you get out of the trading and you are not suitable.

I wanted to used simple example to share on the cut loss ... you bought an egg and prepare to  used it for fry rice, some how you notice/suspect the eggs you pick was/may turn bad.... the question now is shall out throw/scrap the bad one and pick another .... or nevermind bet or hope the suspicious "bad" egg will be good and risk the good rice which is ready to cook ? you make the call... I am believed in order to win I got to know how to prevent I am loss in the market... if I notice I am wrong... I got to admit and cut the loss and make a next move.

As a reminder for myself
I am always remind myself If the trend is go again me and violated my SL limit, I will cut loss base on the risk preference.
Stop Loss is painful process because I making loss, but it is necessary to take it, it is very important because it protect my capital to ensure I am stay in the market.

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