Showing posts with label Technical Analysis. Show all posts
Showing posts with label Technical Analysis. Show all posts

Monday, June 1, 2026

Reversal Patterns: Bakit Hindi Sapat ang Pattern Kung Walang Confirmation

Home › Board Lot Warrior › Micro Harvesting › Level Up Series › Technical Analysis › Reversal Patterns and Confirmation Discipline

Micro Stock Trader educational banner showing a trading desk, laptop chart panels, reversal patterns such as Head and Shoulders, Double Top, Double Bottom, Cup and Handle, and Wedges, with the tagline Pattern Muna, Confirmation Next.
Pattern muna, confirmation next—isang paalala na sa technical analysis, hindi sapat ang hugis kung walang malinaw na breakout, breakdown, at risk management.

👉 Explore the full Micro Harvesting framework

Mula sa Head & Shoulders hanggang Double Bottoms at Wedges, ang reversal patterns ay hindi simpleng hugis sa chart. Sa likod ng bawat pattern, may kwento ng buyers, sellers, momentum, at confirmation—kaya sa disciplined trading, pattern muna, confirmation next.


Links to Related Posts

Level Up: Bakit Mahalaga sa Akin ang Pag-enroll sa 17th PSE-Ateneo Certified Securities Specialist Course

Micro Harvesting and the Meaning of Money: Why This System Is Mainly a Machine for Making More Money

Tatlong Mode ng Micro Harvesting: Tugon sa Nagaganap na Digmaan sa Middle East


Nilalaman

Ang Punto ng Usapan

Last Saturday, ang isa sa mga tinalakay sa aming technical analysis discussion ay ang reversal patterns. Sa unang tingin, simple lang siya pakinggan: mga chart formation na maaaring magbigay ng clue na nagbabago na ang direction ng price trend.

Pero habang mas pinag-iisipan ko siya, mas malinaw na hindi pala ito simpleng usapan ng “nakakita ako ng pattern, kaya trade agad.”

Mas malalim ang aral.

Ang reversal pattern ay hindi hula. Hindi rin siya magic signal. Isa siyang visual clue na maaaring nagsisimula nang magbago ang behavior ng buyers at sellers. Kapag dating uptrend, maaaring mag-warning ito na humihina na ang momentum. Kapag dating downtrend, maaari itong magsabi na may buyers nang unti-unting pumapasok.

Pero gaya ng maraming bagay sa merkado, hindi sapat ang itsura. Kailangan pa rin ng confirmation.

Dito ko nagustuhan ang simpleng linya para sa topic na ito:

Pattern muna, confirmation next.

Ano ang Reversal Patterns

Ang reversal patterns ay mga chart formations na maaaring magpahiwatig na ang dating trend ay posibleng magbago ng direksyon.

Kung ang stock ay matagal nang umaakyat, ang bearish reversal pattern ay maaaring mag-warning na humihina na ang buyers at posibleng magsimula ang correction o downtrend.

Kung ang stock naman ay matagal nang bumababa, ang bullish reversal pattern ay maaaring magpahiwatig na nababawasan na ang selling pressure at posibleng magsimula ang recovery.

Pero mahalaga ang salitang “posible.”

Hindi automatic ang reversal. Hindi porket may pattern ay sigurado na ang kasunod na galaw. Sa technical analysis, ang pattern ay parang kwento ng market behavior. Pero kailangan pa rin nating hintayin kung tatapusin ba ng merkado ang kwento sa pamamagitan ng breakout, breakdown, volume, at follow-through.

Head & Shoulders

Isa sa pinaka-classic na reversal patterns ay ang Head & Shoulders.

Usually, bearish reversal pattern ito. Madalas itong hinahanap pagkatapos ng uptrend, kung saan unti-unting nagpapakita na humihina na ang buying pressure.

Ang basic structure nito ay:

Left Shoulder
Head
Right Shoulder
Neckline break

Sa left shoulder, umaakyat pa rin ang price at mukhang normal pa ang trend. Sa head, nakakagawa pa ng mas mataas na peak ang price, kaya parang malakas pa rin ang buyers. Pero pagdating sa right shoulder, hindi na niya kayang ulitin ang taas ng head.

Doon nagsisimulang maging interesting ang pattern.

Parang sinasabi ng chart: “Nakagawa pa ako ng higher high kanina, pero ngayon hindi ko na kayang balikan.”

Kapag nabasag ang neckline, mas lumalakas ang bearish interpretation. Ibig sabihin, hindi na lang ito simpleng paghina sa taas; may actual break na sa support structure.

May kabaligtaran din ito: ang Inverse Head & Shoulders. Kung ang ordinary Head & Shoulders ay bearish reversal after an uptrend, ang inverse version naman ay bullish reversal after a downtrend.

Sa inverse pattern, parang nauubos na ang sellers. Bumubuo ang price ng left shoulder, lower head, at right shoulder, pero hindi na rin nagagawa ng price na bumagsak pa nang mas malalim. Kapag nabasag ang neckline pataas, doon nagiging mas valid ang bullish signal.

Ang lesson dito: hindi sapat na makita ang ulo at balikat. Ang mas mahalaga ay kung nasaan ang neckline at kung may malinaw na break.

Double Tops and Double Bottoms

Ang Double Top ay bearish reversal pattern.

Simple ang kwento nito. Dalawang beses sinubukan ng price basagin ang resistance, pero dalawang beses din itong nabigo. Parang may kisame ang presyo na hindi niya malampasan.

Sa Taglish trader language:

“Hanggang dito lang kaya ng buyers.”

Pero gaya ng Head & Shoulders, hindi sapat na dalawang peak lang ang makita. Ang mas mahalaga ay ang support o neckline sa gitna ng dalawang top. Kapag nabasag iyon, doon nagiging mas malinaw na posible nang mag-shift ang sentiment from bullish to bearish.

Ang Double Bottom naman ay kabaligtaran.

Bullish reversal pattern ito. Dalawang beses sinubukan ng price bumagsak, pero parehong sinalo ng buyers. Parang sinasabi ng market:

“Dito may demand. Dito may sumasalo.”

Kapag nabasag naman ang resistance sa itaas ng formation, mas lumalakas ang bullish signal. Dito puwedeng magsimula ang recovery, lalo na kung may kasamang volume at mas magandang market context.

Sa simpleng salita:

Double Top: dalawang beses nabigo sa resistance.
Double Bottom: dalawang beses sinalo sa support.

Pero sa parehong pattern, confirmation pa rin ang tunay na trigger.

Cup and Handle

Ang Cup and Handle ay interesting dahil maaari siyang maging bullish continuation or bullish reversal pattern, depende sa context.

Ang itsura niya ay parang tasa.

Una, may rounded bottom na nagsisilbing cup. Ipinapakita nito na unti-unting bumabagal ang selling, nagkakaroon ng stabilization, at dahan-dahang bumabalik ang buyers.

Pagkatapos, may maliit na pullback o consolidation na nagsisilbing handle. Hindi ito dapat agad tingnan bilang weakness. Minsan, ito ay pause lang bago ang possible breakout.

Ang confirmation usually nangyayari kapag nabasag ang resistance sa rim ng cup. Mas maganda kung may volume, dahil ipinapakita nito na hindi lang basta manipis na galaw ang breakout. May participation.

Sa akin, maganda ang Cup and Handle bilang visual reminder na hindi lahat ng recovery ay biglaan. May mga recovery na mabagal, paikot, at kailangan ng panahon bago tuluyang magpakita ng lakas.

Parang trader din.

Hindi lahat ng level up ay biglang talon. Minsan, gradual recovery muna. Then consolidation. Then saka pa lang breakout.

Wedges

Ang wedges naman ay tightening price patterns. Ibig sabihin, paliit nang paliit ang range ng galaw ng price.

May dalawang common types:

Rising Wedge
Falling Wedge

Ang Rising Wedge ay kadalasang bearish. Umaakyat ang price, pero habang umaakyat, kumikipot ang galaw. Parang umaakyat pa rin siya, pero hindi na kasing lakas ng dati. May progress, pero humihina ang momentum.

Kapag nabasag pababa ang lower trendline ng wedge, possible breakdown signal iyon.

Ang Falling Wedge naman ay kadalasang bullish. Bumababang price action siya, pero habang bumababa, kumikipot din ang range. Parang nauubos na ang selling pressure. Kapag nabasag pataas ang upper trendline, possible bullish breakout signal iyon.

Ang maganda sa wedges, tinuturuan tayo nitong hindi lang direction ang tinitingnan. Tinitingnan din natin ang quality ng galaw.

Umaakyat ba nang may lakas?
Bumababa ba nang may tunay na selling pressure?
O kumikipot na ang range at naghahanda na ang market sa mas malinaw na move?

Dito nagiging mahalaga ang patience. Kapag wedge pa lang, hindi pa tapos ang kwento. Kailangan pa ring hintayin kung saan siya lalabas.

Ang Tunay na Aral: Confirmation Muna Bago Action

Para sa akin, ito ang pinakasentro ng lesson:

Hindi porket mukhang Head & Shoulders, Double Top, Double Bottom, Cup and Handle, or Wedge, automatic trade agad.

Pattern muna. Confirmation next.

Ang confirmation ay maaaring manggaling sa:

clear breakout or breakdown
neckline break
support or resistance break
volume confirmation
follow-through candle
alignment with broader trend or market context

Kung walang confirmation, ang pattern ay possibility pa lang. Kapag may confirmation, doon pa lang siya nagiging mas tradable na signal.

At kahit may confirmation, hindi pa rin nawawala ang risk. Pattern can fail. Breakout can reverse. Breakdown can trap sellers. Kaya hindi puwedeng mawala ang risk management.

Dapat laging may tanong:

Nasaan ang invalidation level?
Saan ako mali?
Gaano kalaki ang risk kung hindi tumuloy ang pattern?
May sapat bang reward kung tama ang basa ko?
Compatible ba ito sa aking portfolio rules?

Dito pumapasok ang discipline.

Ang beginner minsan excited sa pattern. Ang mas disciplined na trader, excited din siguro, pero marunong maghintay.

Paano Ito Makakatulong sa Micro Harvesting Mindset

Sa Micro Harvesting, hindi natin hinahabol ang bawat galaw. Hindi rin natin ginagawang dahilan ang bawat pattern para magmadaling bumili o magbenta.

Mas mahalaga sa atin ang structure, capital posture, risk bands, at governance.

Kaya kapag pinag-uusapan ang reversal patterns, hindi ko ito tinitingnan bilang standalone trading signal lamang. Tinitingnan ko siya bilang dagdag na layer ng market reading.

Halimbawa, kung ang isang stock ay nasa deep stress zone at may lumalabas na possible bullish reversal pattern, hindi ibig sabihin automatic refill agad. Pero maaari itong makatulong para mas maunawaan kung may early sign na humihina na ang selling pressure.

Kung ang isang stock naman ay matagal nang umaakyat at may possible bearish reversal pattern, hindi ibig sabihin automatic sell agad. Pero maaari itong maging warning na dapat mas maging maingat, lalo na kung malapit na sa profit-taking zone o kung lumalabas na ang momentum fatigue.

Sa madaling salita, ang reversal patterns ay hindi dapat maging boss ng system. Dapat silang maging adviser lang.

Ang system pa rin ang masusunod.

Capital rules pa rin.
Risk management pa rin.
Confirmation pa rin.
Discipline pa rin.

Dito ko nakikita ang halaga ng formal technical analysis lesson sa actual Micro Stock Trader journey. Hindi niya pinapalitan ang existing framework. Pinapalinaw niya ang language ng chart behavior.

Mas nagiging organized ang dating instinct. Mas nagiging explainable ang dating pakiramdam. Mas nagiging disciplined ang dating reaction.

Dito rin nagiging malinaw kung bakit mahalaga ang formal learning. Kapag ang isang simpleng chart pattern ay may ganitong dami ng context—trend, neckline, breakout, volume, confirmation, at risk management—mas lalo mong makikita na ang technical analysis ay hindi lang memorization ng shapes. Kailangan din ng mas malalim na framework.

Kung Gusto Mong Lumalim Pa

Kung seryoso kang mas palalimin ang understanding mo sa capital markets, technical analysis, valuation, portfolio management, risk management, securities regulation, at ethics, magandang i-check ang 17th PSE-Ateneo Certified Securities Specialist Course.

Para sa akin, malaking bagay na ang actual market experience ay masamahan ng structured at formal learning. Iba pa rin kapag ang sariling trading journey ay nadadagdagan ng mas malinaw na framework, mas technical na language, at mas malalim na appreciation sa kung paano gumagalaw ang merkado.

Hindi ito para sa mga naghahanap ng shortcut. Mas bagay ito sa investors, traders, professionals, at market participants na gustong seryosohin ang pag-aaral ng securities market at maging mas responsible sa kanilang market decisions.

Para sa official course details, schedule breakdown, requirements, fees, at iba pang information tungkol sa 17th PSE-Ateneo Certified Securities Specialist Course, puwedeng bisitahin ang official program page sa link na ito:

For more information, visit:
https://cce.ateneo.edu/program-calendar/17th-pse-ateneo-certified-securities-specialist-course

Pangwakas na Kaisipan

Ang reversal patterns ay magandang aralin dahil tinuturuan tayo nitong basahin ang pagbabago ng market behavior. Nakikita natin kung kailan humihina ang buyers, kung kailan nauubos ang sellers, at kung kailan posibleng magbago ang direksyon ng price.

Pero ang mas mahalagang lesson ay hindi lang ang pangalan ng pattern.

Hindi sapat na alam natin ang Head & Shoulders. Hindi sapat na makita natin ang Double Top. Hindi sapat na ma-recognize natin ang Cup and Handle o Wedge.

Ang tunay na tanong ay:

May confirmation ba?
May risk management ba?
May discipline ba?
May system ba?

Dahil sa huli, ang technical analysis ay hindi dapat gamitin para pilitin ang market sumunod sa gusto natin. Ginagamit ito para mas maingat nating maintindihan ang ipinapakita ng market.

Pattern muna, confirmation next.

At pagkatapos noon, risk management always.


Quick Links

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Shariah Compliance Advisory (Updated Nov 26, 2025)

The PSE has confirmed that its Shariah screening program is currently paused, with no new lists to be released until their internal review is completed. Although news outlets reported quarterly updates up to mid-2025, these later lists are no longer accessible on the PSE website.

For now, the PSE’s Shariah-Compliant Securities page and all past lists have been removed from the public website. The December 24, 2024 list is the last official version in Micro Stock Trader’s possession, downloaded before the page was taken down, although other investors may still hold later copies such as the reported July 4, 2025 release.

All halal-focused strategies under Micro Stock Trader will use a conservative, self-screened approach until official guidance resumes, in shā’ Allāh.


Disclaimer

This post is for educational and documentation purposes only. It is not investment advice. Perform your own due diligence and consult qualified financial professionals before making investment decisions. All strategies, frameworks, and examples described here reflect the personal methodologies of Micro Stock Trader and are not guarantees of future performance.


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Wednesday, February 19, 2025

Stock Price Follow-Up Review: Monde Nissin Corporation (MONDE) Morning Chart as of February 19, 2025 – Buy or Sell Decision Using the Hybrid 10-Step Strategy

Contents:

  • Introduction
  • Hybrid 10-Step Trading Strategy Review
  • Final Stock Recommendation
  • Next Steps


I. Introduction

This follow-up review examines Monde Nissin Corporation (MONDE) based on the morning session chart as of February 19, 2025.

MONDE recently attempted to break above the 9.13 resistance zone, following a strong close on February 18, 2025, at 8.45 with a volume surge of 10.465M, exceeding its target breakout volume of 10.41M.

This review will determine whether MONDE’s bullish momentum is sustainable and whether a buy opportunity exists using the Hybrid 10-Step Trading Strategy 3.0.

Updated Trade Details (Morning Session – February 19, 2025)

  • Date: February 19, 2025
  • Stock: Monde Nissin Corporation (MONDE)
  • Exchange: Philippine Stock Exchange (PSE)
  • Timeframe: Morning Chart (End of Morning Session)
  • Opening Price: 8.45
  • High: 8.60
  • Low: 8.28
  • Current Price: 8.52
  • 20-MA (Short-Term Trend): 7.51
  • 200-MA (Long-Term Trend): 9.55

Volume Analysis (Morning Session – February 19, 2025)

  • Morning Volume: 3.825M
  • Closing Volume (February 18, 2025): 10.465M
  • 30-day Volume Average: 9.671M
  • 65-day Volume Average: 7.122M
  • Target Breakout Volume (65-day x 1.5 volume average): 10.41M

With MONDE’s price hovering near the 9.13 key breakout level, this analysis will evaluate whether the stock can sustain its bullish move or if a pullback is expected.

MONDE morning session chart with technical indicators as of February 19, 2025

MONDE Morning Session Stock Charts as of February 19, 2025



II. Hybrid 10-Step Trading Strategy Review

Step 1: Identify Market State & Trend Context

  • Daily Chart:

    • MONDE continues to trade below the 200-day MA (9.55), meaning the long-term trend remains bearish.
    • However, the price is now well above the 20-day MA (7.51), indicating strong short-term bullish momentum.
  • Monthly Chart:

    • The stock is attempting a recovery from the 6.65 low, but it remains below the 20-MA (9.14).

Verdict: Wait (Short-term bullish momentum is strong, but long-term downtrend remains).


Step 2: Price Position & Retracement Zones

  • MONDE is currently at the 57% retracement level, slightly above the power move sweet spot of 8.47 - 9.13.
  • A break above 9.13 with strong volume would confirm a bullish continuation.

Verdict: Watch for Breakout Above 9.13 (Critical Level for Bulls).


Step 3: Power Bars, Breakout Signals & Volume Confirmation

  • MONDE closed with high volume (10.465M) on February 18, 2025, exceeding the 10.41M breakout target, indicating strong buying interest.
  • However, the morning session volume (3.825M) is lower, meaning momentum must be sustained throughout the day.

Verdict: Buy on Further Strength (Monitor closing volume for confirmation).


Step 4: Entry Confirmation Based on Technical Signals

  • A full confirmation occurs if MONDE closes above 9.13 with strong volume.
  • The key resistance levels:
    • Short-term: 9.13
    • Mid-term: 9.55 (200-MA)

Verdict: Small Entry Possible (Full confirmation needed).


Step 5: Stop-Loss Positioning & Risk Management

  • If entering long, a stop-loss should be placed below 8.00 to protect against downside risk.
  • A drop below 7.50 would signal further weakness.

Verdict: Buy with Risk Management (Stop-loss at 8.00).


Step 6: Color Change Signals for Additional Confirmation

  • Another green candle has formed, reinforcing bullish sentiment.
  • However, confirmation of bullish structure requires a sustained close above 9.13.

Verdict: Wait (Needs a strong close above 9.13).


Step 7: Profit-Taking Strategies with Tactical Exits

  • Profit targets:
    • Short-term: 9.13
    • Mid-term: 9.55 (200-MA)
    • Long-term: 10.50

Verdict: Hold Position, Take Partial Profits at 9.13 and 9.55.


Step 8: Potential Re-Entry Zones

  • Re-enter near 8.15 if support holds.
  • Buy on a confirmed breakout at 9.13.

Verdict: Watch for Re-Entry on Retracement or Breakout.


Step 9: Tactical Position Adjustments

  • Core Position: Initiate if MONDE holds above 9.13 with volume confirmation.
  • Tactical Entry: A small position can be taken near 8.52, increasing size upon confirmation above 9.13.

Verdict: Small Position Possible Near 8.52, Increase Size Above 9.13.


Step 10: Counter-Trend Trading Considerations

  • No counter-trend trade is recommended since MONDE is trading within a breakout structure.

Verdict: Avoid Counter-Trend Trading.


III. Final Stock Recommendation

Final Trade Recommendation: BUY (With Confirmation)

Recommendation: Buy if MONDE holds above 9.13 with strong volume.

Risk Management: Stop-loss at 8.00 to manage downside risk.

Profit-Taking Strategy: Target prices at 9.13 (short-term), 9.55 (mid-term), and 10.50 (long-term).

Position Size Strategy: Start small near 8.52, increase size upon confirmation above 9.13.


IV. Next Steps

🔹 Short-term traders: Monitor if MONDE sustains above 9.13 before taking full positions.

🔹 Long-term investors: Consider small entries near 8.52 with a stop at 8.00, then add if volume strengthens.

🔹 Existing holders: Monitor breakout confirmation above 9.13 before adding positions.

🚨 Final Thought: MONDE continues its breakout attempt. A strong close above 9.13 with volume confirmation is the key signal to watch. 🚨



Disclaimer: This post is for informational purposes only and should not be considered financial advice. Always do your own research before making any trading decisions.


Related Readings

Tuesday, February 18, 2025

Stock Price Review: Universal Robina Corporation (URC) Daily Chart as of February 17, 2025 – Buy or Sell Decision Using the Hybrid 10-Step Strategy

Contents:

  • Introduction
  • Hybrid 10-Step Trading Strategy Review
  • Final Stock Recommendation
  • Next Steps


I. Introduction

Universal Robina Corporation (URC) is a major player in the Philippine stock market, known for its strong market presence in the food and beverage industry. This review will analyze its price movement using the Hybrid 10-Step Trading Strategy 3.0 to determine the best trade decision.

Trade Details

  • Date: February 17, 2025
  • Stock: Universal Robina Corporation (URC)
  • Exchange: Philippine Stock Exchange (PSE)
  • Timeframe: Daily
  • Closing Price: 63.95
  • High: 65.90
  • Low: 63.30
  • 20-MA (Short-Term Trend): 63.30
  • 200-MA (Long-Term Trend): 94.49

Pullback Under Consideration

  • Start of Power Move Date: January 14, 2025
  • Start of Power Move (100% Pullback): 75.00
  • End of Power Move Date: February 12, 2025
  • End of Power Move (0% Pullback): 59.70
  • Power Move Trend: Bearish
  • Power Move Sweet Spot: 68.12 - 71.18
  • Market Price To Date: 70.20
  • Pullback Level To Date: 69%

Volume Analysis (as of February 17, 2025)

  • Closing Volume: 2.49M
  • 30-day Volume Average: 2.68M
  • 65-day Volume Average: 2.61M
  • Target Breakout Volume (65-day x 1.5 Volume Average): 3.92M

The following analysis will apply our Hybrid 10-Step Trading Strategy to determine whether URC presents a buy, sell, or hold opportunity.

URC stock daily chart with technical indicators as of February 17, 2025


URC stock monthly chart with technical indicators as of February 17, 2025

URC Daily and Monthly Stock Charts as of February 17, 2025



II. Hybrid 10-Step Trading Strategy Review

Step 1: Identify Market State & Trend Context

  • The daily chart shows a downtrend phase with URC trading well below its 200-day MA (94.49).
  • The price is hovering around the 20-day MA (63.30), signaling a potential short-term consolidation after a steep decline.
  • The monthly chart confirms the long-term downtrend, with the 200-MA (113.94) acting as resistance.

Verdict: Wait (Needs confirmation of trend reversal).


Step 2: Price Position & Retracement Zones

  • The stock is currently below the 200-day MA, indicating a bearish macro trend.
  • The price is approaching the 70% retracement level (69%), making it a high-risk zone for long trades unless a reversal occurs.
  • Ideal bullish entry should be within the 25%-45% pullback range, meaning the stock is still in a danger zone for continued downside.

Verdict: Wait (Not yet in a favorable entry zone).


Step 3: Power Bars, Breakout Signals & Volume Confirmation

  • A green candle with increased volume was seen on February 17, 2025, indicating short-term buying interest.
  • However, breakout volume (3.92M) has not been met, suggesting weak confirmation.

Verdict: Wait (Volume does not yet confirm breakout).


Step 4: Entry Confirmation Based on Technical Signals

  • The price is still below the key resistance zone (68.12 - 71.18).
  • A confirmed reversal pattern (e.g., higher lows or a strong bullish breakout above the sweet spot) is needed before entry.

Verdict: Wait (Needs confirmation of a breakout above 71.18).


Step 5: Stop-Loss Positioning & Risk Management

  • If entering a long position, an initial stop-loss should be set below the recent swing low (59.70).
  • Risk remains high due to lack of volume confirmation.

Verdict: Wait (Risk is still high for new positions).


Step 6: Color Change Signals for Additional Confirmation

  • No clear color change pattern yet to confirm a trend reversal.
  • The stock remains inside a bearish channel with no strong green bar confirmation above key resistance.

Verdict: Wait (Needs clear color change confirmation).


Step 7: Profit-Taking Strategies with Tactical Exits

  • Profit targets should be 75.00 for conservative exits and 80.00 for more aggressive ones.
  • However, since an entry is not confirmed, taking profits is not yet applicable.

Verdict: Not applicable yet (Entry not confirmed).


Step 8: Potential Re-Entry Zones

  • If the stock reclaims 71.18 with strong volume, a re-entry can be considered.
  • Alternatively, a pullback to 60.00 with bullish reversal confirmation could be another re-entry point.

Verdict: Wait (Monitor breakout levels before re-entry).


Step 9: Tactical Position Adjustments

  • Core Position: Not recommended yet due to uncertain trend.
  • Tactical Entry: Possible near 60.00 if a bullish reversal occurs or above 71.18 with strong volume.

Verdict: Wait (No adjustment needed until a clearer trend forms).


Step 10: Counter-Trend Trading Considerations

  • Counter-trend trading is not advisable yet since there hasn’t been a gap-down of more than 5% below the 200-MA or two consecutive large red candles near lows.

Verdict: Avoid Counter-Trend Trading (No clear reversal setup).


III. Final Stock Recommendation

Final Trade Recommendation: HOLD/WAIT

Recommendation: Wait for a breakout above 71.18 before considering a long position.
Risk Management: Stop-loss should be set below 59.70 if entering a trade.
Profit-Taking Strategy: Target prices at 75.00 (conservative) and 80.00 (aggressive).
Position Size Strategy: Start with a small position upon breakout confirmation, then add gradually.


IV. Next Steps

🔹 Short-term traders: Avoid buying until a confirmed breakout above 71.18 occurs.
🔹 Long-term investors: May consider waiting for stabilization near 60.00 before adding positions.
🔹 Existing holders: Should monitor breakout confirmation or further downside risks before adjusting positions.
🚨 Final Thought: This is not the ideal entry point yet. A clearer bullish confirmation is required before taking action. 🚨



Disclaimer: This post is for informational purposes only and should not be considered financial advice. Always do your own research before making any trading decisions.


Related Readings

Stock Price Review: Monde Nissin Corporation (MONDE) Daily Chart as of February 17, 2025 – Buy or Sell Decision Using the Hybrid 10-Step Strategy

Contents:

  • Introduction
  • Hybrid 10-Step Trading Strategy Review
  • Final Stock Recommendation
  • Next Steps


I. Introduction

Monde Nissin Corporation (MONDE) is a major food and beverage player in the Philippine stock market. As of February 17, 2025, MONDE has shown a recovery attempt after its bearish power move from 9.95 to 6.65. The stock has now retraced to a pullback level of 57%, positioning it near the power move sweet spot of 8.47 - 9.13.

This review will apply the Hybrid 10-Step Trading Strategy 3.0 to determine whether MONDE presents a buy, sell, or hold opportunity.

Trade Details

  • Date: February 17, 2025
  • Stock: Monde Nissin Corporation (MONDE)
  • Exchange: Philippine Stock Exchange (PSE)
  • Timeframe: Daily
  • Closing Price: 8.15
  • High: 8.20
  • Low: 7.92
  • 20-MA (Short-Term Trend): 7.36
  • 200-MA (Long-Term Trend): 9.57

Pullback Under Consideration

  • Start of Power Move Date: November 20, 2024
  • Start of Power Move (100% Pullback): 9.95
  • End of Power Move Date: January 31, 2025
  • End of Power Move (0% Pullback): 6.65
  • Power Move Trend: Bearish
  • Power Move Sweet Spot: 8.47 - 9.13
  • Market Price To Date: 8.52
  • Pullback Level To Date: 57%

Volume Analysis (as of February 17, 2025)

  • Closing Volume: 7.56M
  • 30-day Volume Average: 9.47M
  • 65-day Volume Average: 6.94M
  • Target Breakout Volume (65-day x 1.5 volume average): 10.41M

While MONDE has entered a technical retracement zone, volume has not yet fully confirmed a bullish breakout. Let’s proceed with the Hybrid 10-Step Strategy analysis.

MONDE stock daily chart with technical indicators as of February 17, 2025


MONDE stock monthly chart with technical indicators as of February 17, 2025

MONDE Daily and Monthly Stock Charts as of February 17, 2025



II. Hybrid 10-Step Trading Strategy Review

Step 1: Identify Market State & Trend Context

  • Daily Chart:

    • MONDE is still in a long-term downtrend, as it trades below the 200-day MA (9.57).
    • However, it has reclaimed the 20-day MA (7.36), indicating short-term bullish momentum.
  • Monthly Chart:

    • The stock has bounced from the recent low (6.65) but remains below the 20-MA (9.14).
    • This suggests that long-term recovery is uncertain, and further confirmation is needed.

Verdict: Wait (Short-term bullish, but long-term trend is still down).


Step 2: Price Position & Retracement Zones

  • MONDE is in the 57% pullback zone, right above the sweet spot (8.47 - 9.13).
  • A break above 9.13 would confirm a bullish continuation.
  • A rejection below 8.47 would indicate a failed recovery and a possible retest of 7.50 or lower.

Verdict: Watch for Breakout Above 9.13 (Key Decision Zone).


Step 3: Power Bars, Breakout Signals & Volume Confirmation

  • MONDE has printed multiple green candles, but breakout volume is missing (current volume = 7.56M vs. target breakout volume = 10.41M).
  • The stock needs a surge in volume above 10.41M to confirm a breakout.

Verdict: Wait (Volume is below breakout threshold).


Step 4: Entry Confirmation Based on Technical Signals

  • An ideal buy entry would be on a break above 9.13 with strong volume.
  • Current resistance levels:
    • Short-term: 8.47 - 9.13
    • Mid-term: 9.57 (200-MA)

Verdict: Wait (Buy on breakout above 9.13 with strong volume).


Step 5: Stop-Loss Positioning & Risk Management

  • If entering long, stop-loss should be placed below 7.50 to protect against downside risk.
  • A drop below 6.65 would indicate further downside pressure.

Verdict: Buy only with risk management (Stop-loss at 7.50).


Step 6: Color Change Signals for Additional Confirmation

  • MONDE has shown consistent green candles, signaling bullish momentum.
  • However, it needs to sustain this trend above key resistance levels.

Verdict: Wait (Needs sustained strength above 9.13).


Step 7: Profit-Taking Strategies with Tactical Exits

  • Profit targets:
    • Short-term: 9.13
    • Mid-term: 9.57
    • Long-term: 10.50

Verdict: Hold with profit-taking at key resistance zones.


Step 8: Potential Re-Entry Zones

  • Buy on retracement near 8.00 if support holds.
  • Breakout entry at 9.13 for momentum continuation.

Verdict: Watch for re-entry on retracement or confirmed breakout.


Step 9: Tactical Position Adjustments

  • Core Position: Entry should be considered above 9.13 with volume confirmation.
  • Tactical Entry: A smaller position may be taken near 8.15, but only if support holds.

Verdict: Small position possible near 8.15, full position upon breakout.


Step 10: Counter-Trend Trading Considerations

  • Counter-trend trades are not recommended unless the stock retests 7.00 with a bullish reversal pattern.

Verdict: Avoid Counter-Trend Trading.


III. Final Stock Recommendation

Final Trade Recommendation: HOLD/WAIT

Recommendation: Wait for a breakout above 9.13 before entering.

Risk Management: Stop-loss below 7.50 to minimize downside risk.

Profit-Taking Strategy: Target prices at 9.13 (short-term), 9.57 (mid-term), and 10.50 (long-term).

Position Size Strategy: Start small near 8.15 if support holds, increase size upon breakout confirmation.


IV. Next Steps

🔹 Short-term traders: Avoid entering until MONDE clears 9.13 with strong volume.

🔹 Long-term investors: Monitor for stability above 8.15 before considering accumulation.

🔹 Existing holders: Consider reducing exposure if price fails to break 9.13.

🚨 Final Thought: MONDE is in a potential reversal phase but needs confirmation above 9.13. A breakout with volume is required for a buy signal. 🚨



Disclaimer: This post is for informational purposes only and should not be considered financial advice. Always do your own research before making any trading decisions.


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Wednesday, February 5, 2025

Summary of the Chronological Evolution of Our Hybrid 10-Step Trading Strategy (January 16, 2025 – February 2025)

Contents:

  • Phase 1: Initial Testing of the Strategy
  • Phase 2: Expanding to Multiple Stocks
  • Major Refinements
  • How These Refinements Prepared Us
  • Recommendations for February 2025
  • Conclusion

Since January 16, 2025, our Hybrid 10-Step Trading Strategy has undergone significant refinements based on live testing through our Budget Ethical Trading Account (BETA). Initially, we focused on single-stock execution using daily charts, but as our understanding deepened, we expanded the approach to multiple stocks and incorporated monthly charts for broader trend confirmation.

Chart depicting the evolution of the Hybrid 10-Step Trading Strategy with key trading adjustments and portfolio refinements

 Evolution of Our Hybrid 10-Step Trading Strategy – Key Refinements and Live Trading Insights


Phase 1: Initial Testing of the Strategy (January 16 – January 21, 2025)

  • We started with URC as the primary test stock, refining entry and exit strategies using our Modified 10-Step Trading Plan.
  • Trading frequency was limited to one entry and exit per week, avoiding overtrading and excessive transaction costs.
  • Entries were strictly based on daily charts, with stop-loss discipline introduced early.
  • Tactical entries were balanced against core positions to enhance execution and minimize risk.

Phase 2: Expanding to Multiple Stocks (January 21 – February 2025)

  • January 21, 2025: Completed Phase 1, after exiting URC due to price weakness, highlighting the importance of disciplined execution.
  • January 23, 2025: Began testing multiple stocks (URC, MONDE, ALLHC, DDMPR, and RCR) while applying the Hybrid 10-Step Trading Strategy for trade evaluations.
  • January 24, 2025: Conducted our first trade evaluation (URC – Trade No. 3), reinforcing the importance of volume confirmation and trade rating assessments.
  • January 31, 2025: Implemented a BETA Portfolio Rebalancing to refine position sizing and sector diversification.

Major Refinements to the Hybrid 10-Step Trading Strategy

As our live testing evolved, we made key adjustments that prepared us for the portfolio-wide rebalancing on January 31, 2025:

  1. Shift from Single-Stock Testing to Portfolio-Wide Application

    • Initially, we tested the strategy on URC alone but later expanded to 11 stocks, requiring a new way of assessing trade performance.
    • New Rule: Live testing must now include at least 20 trades per stock rather than 20 trades overall.
  2. Integration of Monthly Charts for Long-Term Trend Confirmation

    • While the daily chart remains useful for tactical adjustments, we realized that monthly charts provide a more reliable trend context.
    • New Rule: Monthly charts are now our primary timeframe, while daily charts are used for monitoring daily volume trends and short-term setups.
  3. Emphasis on Dynamic Stop-Loss Adjustments

    • Early on, we found that rigid stop-losses were too restrictive, leading to premature exits.
    • New Rule: Implement a hybrid approach with hard stop-losses for deep protection and dynamic stop-losses for trade flexibility.
  4. Stronger Trade Evaluation Metrics & Risk-Reward Adjustments

    • By January 24, 2025, we introduced trade rating scores (6.6–8.8 out of 10) to assess entry logic, risk management, and trade execution.
    • New Rule: Trades must have a minimum 7/10 rating before execution to ensure quality setups.
  5. Portfolio-Wide Adjustments & Tactical Rebalancing (January 31, 2025)

    • The market's high volatility necessitated reallocating capital across multiple stocks to reduce single-stock exposure.
    • New Rule: Implemented BETA Portfolio Rebalancing to increase diversification and avoid concentration risk.

How These Refinements Prepared Us for the January 31, 2025 Portfolio Rebalancing

Our gradual refinement of the Hybrid 10-Step Trading Strategy ensured that we were well-positioned to handle the market conditions leading up to January 31, 2025:

  1. Portfolio Expansion Decision

    • Our realization that 20 trades were insufficient for a true strategy evaluation led us to extend testing to 20 trades per stock.
    • This allowed us to apply the strategy across different market conditions and stock types, avoiding a biased assessment.
  2. Risk Control & Dynamic Trade Adjustments

    • The introduction of dynamic stop-losses and volume confirmation helped us exit positions at the right time, minimizing losses.
    • The new rule of waiting for volume-backed breakouts saved us from premature entries.
  3. Emphasis on Higher-Quality Trade Setups

    • The 7/10 trade rating threshold ensured that we only executed high-probability trades, reducing unnecessary risks.
    • This forced us to maintain discipline, even when multiple stocks showed potential but lacked sufficient confirmation.
  4. Strategic Portfolio Rebalancing

    • By January 31, 2025, we had a clearer understanding of which stocks aligned best with our trading approach.
    • This led to rebalancing our BETA portfolio, ensuring that we had the right mix of core holdings and tactical trades.

Recommendations for February 2025

With our Hybrid 10-Step Trading Strategy now optimized for live market conditions, our next steps focus on further refinement and disciplined execution:

1. Execute the 20-Trade Per Stock Rule

  • Our testing must now be expanded to at least 20 trades per stock, ensuring a comprehensive evaluation.
  • This will allow us to compare performance across different stocks and market conditions.

2. Strengthen Monthly Chart Implementation

  • While the daily chart remains important, our primary trading decisions will now be based on monthly charts.
  • This will filter out short-term noise and focus on broader trend movements.

3. Enhance Volume Analysis for Entry & Exit Decisions

  • No trade should be executed without volume confirmation supporting the setup.
  • Institutional selling pressure must be considered before entering any trade.
  • New Rule: We shall only enter breakouts with above-average volume, ensuring institutional support.

4. Maintain Disciplined Execution & Trade Rating System

  • We must continue using the 7/10 trade rating system to ensure that only high-quality trades are executed.
  • No deviation from the strategy is allowed—absolute discipline is required.

5. Adapt to Market Conditions & Adjust Position Sizing

  • Given the volatility observed in January 2025, February’s market conditions must dictate position sizes.
  • New Rule: Core positions should remain steady, but tactical entries should be adjusted based on risk-reward ratios.

Conclusion

With the lessons learned from January 2025, we are entering February 2025 with a fully refined version of our Hybrid 10-Step Trading Strategy. The decision to expand testing to 20 trades per stock, focus on monthly charts, and strictly enforce volume-backed breakouts ensures that we execute our trades with absolute discipline.

Our next goal is to execute a minimum of 20 trades per stock with full adherence to the strategy. After completing this expanded live testing, we will conduct a final performance review to determine the overall effectiveness of the Hybrid 10-Step Trading Strategy.

🚀 February 2025 marks the next evolution of our trading journey. The strategy is set—now, it’s all about disciplined execution. 🚀


Disclaimer: This post is for informational purposes only and should not be considered financial advice. Always do your own research before making any trading decisions.


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GAWLOO: Ang Lugawang May Sarap ng Southeast Asia — Gawa ng Batangueñong Galing Abroad

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