Heikin Ashi Bollinger Band Stock Trading System
HABBSTS or Heikin Ashi Bollinger Band Stock Trading System uses a 3 -indicator combo on the weekly time frame. It consists of:
- 13-week Bollinger Bands
- Heikin Ashi Candles
- 3-week exponential moving average displaced/offset by 2
This is a trend following trading system although it is also superb for visualising major turning points. Not meant for short term speculation, it is a mid to long term trading/semi-investing method.
This system was explained in great detail in this post ‘Testing: Weekly Heikin-Ashi-Bollinger Stock Trading System‘.
Sembcorp Industries (U96.SI) printed with HABBSTS setup
We may or may not be looking at a major turning point depending on the following setup to appear:
- Heikin Ashi closes in red by end of this week.
- Dotted trend line support below is broken.
- Current /\/\/\ pattern breaks neck line, confirms triple top reversal pattern.
Successful application of this trading system depends on:
- Whether one believes in the Heikin Ashi colours or not? (Warning: This is weekly chart. Until a week is over, Heikin Ashi colours can re-paint intra-week if day to day price fluctuations are drastic.)
- Whether one can stay on a trend (stay with a colour) until the end.
- Whether one is unfortunate enough to encounter the occasional pocket of volatility where candle colours change nearly every week.
Loss leader over 3 years
Despite strong gains in Q4 ’16 and Q1 ’17, Sembcorp Ind. is 3-year loss leader among 30 constituents in the Strait Times Index. This is based on 07 August 2017 data captured from SGInvestors.io. One-up the table is fellow Oil and Gas player Keppel Corp.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.