Sunday, November 4, 2012

JIN Trading System - Neo Mui Kian

6Oct12 - SGX Auditorium  9.30am- 12.30pm

JIN Proprietary Trading System by Neo Mui Kian

http://www.stockadvancedalertreport.com/


If You Know the Following Would It Help Improve Your Trades?
How to identify trend?
How to identify easy trade?
How to use indicators to project potential target price?
When to stay out?
How to project the range for any stocks so that you maximise your profits?
How to use indicators effectively and effortlessly to help you in making your trading decisions?
How to select Potential Penny Stocks?


Plug-in module requires Metastock version 11.

Tt required advanced programming skill to straighten a RSI curve into a straight line.  Mathematically, it is very simple.  You just divide RSI value by itself (RSI/RSI) and you get a straight line at value 1.

The yellow curvilinear line in the her JIN chart represented the 27-day exponential moving average (EMA) of the closing price.

It is an open secret that EMA(27) has a math relationship with RSI(14). 

1.  When EMA(27) curves upward, RSI(14) will also follow suit, and vice versa.
2.  When the closing price crosses above EMA(27),  RSI(14) will cut above its 50 level at the same time.  Trader uses RSI 50 level to gauge buying/selling pressure.
3.  If you like a shorter term indicator, say RSI(8),  then you can then conveniently change her default EMA(27) value to EMA(15).
4.  If you have access to charting software, you can prove this experiment yourself.  When price cuts above EMA(15),  its RSI (15) will cross above 50 level; and vice versa.
5.  If you like to test other values, the following are the magic pairs:

RSI(1)  = EMA(1)
RSI(2)  = EMA(3)
RSI(3)  = EMA(5)
RSI(4)  = EMA(7)
RSI(5)  = EMA(9)
RSI(6)  = EMA(11)
RSI(7)  = EMA(13)
RSI(8)  = EMA(15)
RSI(9)  = EMA(17)
RSI(10) = EMA(19)
RSI(11) = EMA(21)
RSI(12) = EMA(23)
RSI(13) = EMA(25)
RSI(14) = EMA(27)

It is a promoter's tactic to say that it requires programming skill to alter the charting to make her product more appealing, as usual.

It is not a secret why 27 is chosen. The choice of samples size depend very much on the time horizon of your trading, what you want your chart to look like to suit your trading time frame.

For stock using 1 day chart with candle, it makes sense to have sample size (27) or bigger to match your longer position holding period of few months to several years. Banks use 200/100/50.

For Futures using 1 day chart with candles, GM Teo of Adam Khoo uses EMA(2) and EMA(5) cross-over for intraday trading to decide entry/exit, But for position holding, you can also use 20, 25, 50..

For intraday trading, you have to switch to 1min/5min charts with bigger sample size according to your needs in position holding. There is no right or wrong choice.

RSI(x) and EMA(y) relationship:  y=2x-1 y=odd number. meaning RSI is using half of EMA


The classic Bollinger Band comprises one moving average and two other lines drawn +/- two standard deviations from the mean price.  Mui Kian re-configured these curvilinear lines into distinctive horizontal lines to give us a cleaner view to analyse the underlying issues, without the squiggles. 

Mui Kian’s JIN system may be a “Square Bollinger Band”.   Bollinger Band measures price volatility.  EMA(27) determines velocity of price change.  Her blue diamond symbol represents high volume.   These three indicators cover volatility, velocity and volume (3Vs) parameters.   It will, most probably, result in a more robust buy/sell alerts and better result expectancy.

Conclusion: Mui Kian could not speak well and could not deliver well. Needs improvement in presentation skill.


3 comments:

  1. "You just divide RSI value by itself (RSI/RSI) and you get a straight line at value 1" This statement is not true and not right as the RM meter the horizontal line value is 0 not 1.

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  2. https://www.youtube.com/watch?v=Ar7_bszyfK8 watch for yourself and look carefully see if the horizontal line value is 1 or 0.

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