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Monday, September 29, 2008

Flags & Pennants bearhugs KLCI

Flag & Pennant Bear Hugs KLCI
Descriptions and examples of Bear Flags & Pennants in this article shall be kept to the minimal and in the simplest of form in everyone's interest.

Disclaimer : This article is nothing more than a case study. It is not a solicitation to buy or sell. The author is not responsible for any buy / sell commitments of readers. Please consult your remisier for additional infos and opinions. Trade at your own risk.

Emphasis on this case study should center on the date of events, TA patterns & formations and the corelations of Price and Volume. Chart duration is 3 mths (Jul - Sep 08) from 9 mths of grizzly bear hugs.

04 - 14 July 2008 ..... Flag #1 started with a volume hike on 04/7/08 with prices rising AGAINST a falling KLCI trend. The volume diverge as the prices began as the flag flutters and (vol) spiked again when prices breakout and down of Bear Flag #1 .... the KLCI immediately continue it downtrend.

23 Jul - 04 Aug 08 ..... Flag #2 is a carbon copy of the first flag. Volume at entry, mast, exit and increased of volume at breakout can be classified as a COPYCAT from start to finish. Familiar? HAHAHAHAHA!!!!. Again the KLCI resumed it's initial trend >>>> DOWN.

29 Aug - 04 Sep 08 ..... Pennant #3 is shaped like a small symmetrical triangle but nevertheless it's properties and characteristics are similar to the flag where the prices and volumes are the major players. Flags are more potent traps than pennants which tends to move sideway or consolidates - projecting a false signal or flashing false hopes the bearish trend is about to reverse. This is substantiated by lower volumes that tricked traders into a false sense of beliefs the sellers are weakening. Higher volumes suggested more participations and commitments. And when the bears raised the red pennant, the downtrend continued trapping many traders with the oldest trick in the TA bible.

14 - 26 Sep 08 ...... Pennant #4 commences the day after the Lehman Bros financial fiasco. The Hammer rebounded with an above average daily volume. Let the pennant begins ....... UNFINISHED >>> INCOMPLETED becoz no volume spiked occured on last trade Friday 26/09/08.

Correct Correct Correct .... it looks like a pennant, behaves like a pennant but it is not a completed pennant until we all get drunk (VOL) .... sounds familiar??? Kakakakakaka!!!!

Sorry guys, that was @ VK Lingam cracker and we better adhere to the critical situation at hand or else there will be no one left to mabuk when the Grizzlies wrestle the KLCI and suffocate us with a mother of all bear hugs next week.

Scared? Tensed? Nervous? Go ahead guys .... Permission granted !!! LOL!!!

KLCI Weekly Chart
Critical and face all blue, so? Just close our eyes and die just like that lah??? YOU maybe but not ZL definitely. If we fated go down, we won't go down without a fight. How about 1 big kick up the bear's ass b4 we kick the bucket? Last chance saloon ....KLCI weekly chart ;)

Look at the weekly and screw the date of both flags. What catches your eye? The 1st flag broke out when KLCI peaked but the 2nd flag is much smaller than it's predecessor. The number of weekly candles in 2nd weekly bear flag is less than HALF of the weekly candles 1st flag.

And where is WEEKLY Bear Flag or Pennant #3 ???? Aaaaaaahhhhhh belum nampak lagiiiiii ....HAHAHA.

Even b4 the weekly bear flag or pennant has yet to begin formation, ZL is quietly optimistic and am praying for it to happen. No ZL is not crazy as this is a weekly chart and a flag happening will offer a belated "against the main trend" uptrend reprieve that can meant a few bullish weeks b4 dying again ..... if so fated. And to an opportunist like ZL, that means $$$$$$$$$ !!! And ZL already emphasized the last candle changing of the arrow colors from red >>> green. NEVER SAY DIE .

You want an against the trend BEAR FLAG or PENNANT? Then let's PRAYYYYYYYYY.


Descriptions of FLAG & PENNANT
Flags and pennants are among the most reliable of continuation patterns and only rarely produce a trend reversal. The only difference between the two patterns is that a flag resembles a parallelogram (or rectangle) marked by two parallel trend lines that tend to incline or decline against the prevailing trend. The pennant, however, is identified by two converging trend lines and more horizontal which resembles a small symmetrical triangle. The important thing to remember is that they are both characterized by diminishing trade volume and though different, the measuring implications are the same for both patterns as demonstrated in Zhuge Liang's daily and weekly KLCI charts illustrations.


Zhuge Liang

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