1. NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report GM WESTERN INDICATORS 22 nd October 2015 Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department

2. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department NUS Invest is in no way affiliated or representative of any other company, organisation, club or society, and the views presented are solely our own opinions. The author(s) is not a licensed investment advisor. Our services are educational tools designed to assist you in your personal judgment. It is not designed to replace your licensed financial consultant, and nothing in the content shall be construed to be an offer or solicitation for the purchase or sale of a security. All content on our website and related services is for informational purposes only, and opinions have been made on a general basis. No consideration has been given to any particular individual or specific investment objectives, financial situations or other circumstances. As such, the content should not be relied upon as authoritative without further being subject to the recipient’s own independent verification and exercise of judgment. The fact that the content has been made available constitutes neither a recommendation to enter into a particular transaction nor a representation that any product described within is suitable or appropriate for the reader. Readers should be aware that many of the products which may be described within involve significant risks and may not be suitable for all investors, and that any decision to enter into transactions involving such products should not be made unless all such risks are understood and an independent determination has been made that such transactions would be appropriate. Disclaimer

3. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Agenda Recap on Chart Patterns Moving Average Relative Strength Index Bollinger Bands Conclusion

4. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Recap on Chart Patterns Head and Shoulders

5. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Recap on Chart Patterns Triangle patterns

6. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Recap on Chart Patterns Flags & Pennants

7. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department What are Technical Indicators? A class of metrics whose value is derived from generic price activity in a stock or asset. Look to predict the future price levels, or simply the general price direction, of a security by looking at past patterns. Indicators generally overlay on price chart data to indicate where the price is going, or whether the price is in an "overbought" condition or an "oversold" condition.

8. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Types of Technical Indicators

9. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Agenda Recap on Chart Patterns Moving Average Relative Strength Index Bollinger Bands Conclusion

10. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Trend Indicators

11. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Moving Average WHAT ARE THEY ? Most popular tool in technical analysis Help track trends in financial assets by smoothing out day- to-day price fluctuations Generate buy and sell signals

12. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Moving Average SIMPLE MOVING AVERAGE Arithmetic mean of a given set of values Example: For a 10 day moving average, sum the prices of the last 10 days and divide by the number of days (10) Why ‘moving’? 10-day SMA

13. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Moving Average WHAT DO MOVING AVERAGES LOOK LIKE ? Calculate values for each date, plot onto a chart and connect the points Use of multiple moving averages together Time frames can vary

14. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Moving Average EXPONENTIAL MOVING AVERAGE Weighted moving average More responsive to new information than SMA- more weight to recent prices

15. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Moving Average PRIMARY FUNCTIONS Identify trends and reversals Measure the strength of an asset’s momentum Determine potential areas where an asset will find support or resistance

16. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Moving Average TRENDS Moving averages are lagging indicators Uptrend- price is above moving average Downtrend- price is below moving average

17. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Moving Average MOMENTUM Pay close attention to the time periods used in creating the average Place 3 moving averages on a chart and see how they stack up in relation to one another

18. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Moving Average Support and Resistance

19. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Moving Average CROSSOVERS

20. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Moving Average CROSSOVERS

21. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Moving Average MOVING AVERAGE ENVELOPE

22. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Moving Average FACTORS TO CONSIDER Data used in calculation Finding an appropriate time period No average is full-proof

23. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Agenda Recap on Chart Patterns Moving Average Relative Strength Index Bollinger Bands Conclusion

24. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Momentum Indicators

25. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Relative Strength Index J. Welles Wilder Measures the speed & change of price movements o Overbought-Oversold o Divergences o Failure Swings o Trend Identification

26. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Relative Strength Index – The Calculation RSI = 100 – 100 1 + RS RS = Avg. Gain ÷ Avg. Loss The very first calculations for avg. gain and avg. loss are simple 14 period avg(s). First Avg. Gain = Sum of Gains over the past 14 periods / 14 First Avg. Loss = Sum of Losses over the past 14 periods / 14 The second, and subsequent, calculations are based on the prior averages and the current gain loss: Avg. Gain = [(previous Avg. Gain) x 13 + current Gain] / 14 Avg. Loss = [(previous Avg. Loss) x 13 + current Loss] / 14

27. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Relative Strength Index – The Calculation

28. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Relative Strength Index – Overbought-Oversold

29. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Relative Strength Index – Divergences

30. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Relative Strength Index – Failure Swings Bullish Failure Swing 1.Below 30 (Oversold) 2.Bounce above 30 3.Pullback and hold above 30 4.Break above prior high

31. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Relative Strength Index – Failure Swings

32. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Relative Strength Index – Failure Swings Bearish Failure Swing 1.Above 70 (Overbought) 2.Pullback below 70 3.Bounce and hold below 70 4.Break above prior low

33. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Relative Strength Index – Failure Swings

34. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Relative Strength Index – Trend Identification Bullish Market 4090 4050 Range Support

35. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Relative Strength Index – Trend Identification

36. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Relative Strength Index – Trend Identification Bearish Market 6010 6050 Range Resistance

37. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Relative Strength Index – Trend Identification

38. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Agenda Recap on Chart Patterns Moving Average Relative Strength Index Bollinger Bands Conclusion

39. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Volatility measures the dispersion or variation of prices It also measures the risk of an underlying asset ↑ volatility ↑ risk ↑ returns ↓ volatility ↓ risk ↓ returns What is Volatility?

40. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Volatility Indicators

41. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Bollinger Bands Founded by John Bollinger 3 key elements: 1.Simple moving average (μ) 2.Upper band (μ + 2σ) 3.Lower band (μ – 2σ) BB(no. of days, no. of σ) BB(20, 2)

42. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Standard Normal Distribution Moving average (μ) Lower band (μ – 2σ) Upper band (μ + 2σ)

43. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Bollinger Bands – 3 elements 2σ2σ 2σ2σ 20-SMA Upper Band Lower Band

44. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Bollinger Bands – Identifying Trends (Up Trend)

45. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Bollinger Bands – Identifying Trends (Down Trend)

46. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Bollinger Bands – Identifying Trends (Sideway Trend)

47. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Key Assumptions Mean reversion—prices tend to move towards the average over time Bollinger Bands – Mean Reversion

48. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Bollinger Bands – Walking the Bands

49. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Bollinger Bands – Squeeze

50. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Bollinger Bands – Double Tops

51. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Bollinger Bands – Double Bottoms

52. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Recap Indicators covered: - Moving Average - Relative Strength Index - Bollinger Bands NUS Invest Quiz - http://go.nusinvest.com/registerhttp://go.nusinvest.com/register

53. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Recap Workshops covered: - Intro to Basic Candlestick Patterns - Support & Resistance, Trendlines - Chart Patterns - Western Indicators Next workshop: Trading Psychology & Money Management

54. Western Indicators 22 nd October 2015 NUS Invest nusinvest.com DISCLAIMER AND DISCLOSURES Please read the disclaimer and the disclosures which can be found within this report Mudit Kedia, Timmy Lim, Yeo Jian Hui Global Macro Department Q&A Session