18th August 2006, Friday morning

Well the KL Composite Index dropped to 937 on Wednesday but on Thursday morning it received buying support to keep the index up.

I am going to change my Feng Shui RSI to just ISI.
ISI stands for Interactive Strength Index.

I find ‘interactive’ is a better word as the ISI is derived solely from the interactions between the elements of the year, month and day. Unlike RSI which compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions, ISI looks at any day in the future and by examining the interactions of the various elements, predicts whether it is a up day or down day. With ISI you can forecast the markets months ahead. This is the beauty of the ISI system.

Anyway, back to KLSE. ISI predicts the CI to test the Wednesday’s low of 937 again.

Daily RSI has broken 80. It is a sell. Parabolic is giving the sell signal. MACD, Stochastic are all indicating sell.
Let us see what happen today.

Happy Trading.

As always quoting the I Ching, those who know make fewer mistakes.