Ichimoku Kinko Hyo Analysis on Singapore Car Taxes

Discussion of Singapore’s recent inflation seems to dominate dinner conversations these days. In

particular, the recent spike in COE prices is always in the conservational limelight.

While financial markets take a year end

perspective, by using an indicator we commonly use: the

Ichimoku is an award winning Japanese trend following indicator that has been succe

nearly every tradeable market. It is also one of the primary elements of proprietary trading systems

developed at APF Trading. This indicator

area between the blue dotted lines i

A widely used trading strategy for

Strategy, which will be the focus of this article

Senkou Span A and Senkou Span B

prevailing quota premiums relative to the Kumo.

So what is this Kumo Cloud? While most technical analysts rely on support/ resistance

by Western indicators, the Kumo serves as key suppo

generally indicates greater volatility in prices, and is also a stronger support/resistance for prices.

Therefore, a breakout from this cloud usually brings about strong price movements in the direction

of the breakout.

Ichimoku Kinko Hyo Analysis on Singapore Car Taxes (December 2010)

Discussion of Singapore’s recent inflation seems to dominate dinner conversations these days. In

particular, the recent spike in COE prices is always in the conservational limelight.

year end break, we decided to analyse COE prices from a different

perspective, by using an indicator we commonly use: the Ichimoku Kinko Hyo.

Ichimoku is an award winning Japanese trend following indicator that has been succe

nearly every tradeable market. It is also one of the primary elements of proprietary trading systems

indicator is distinctively identified by the “Kumo Cloud”, which is the

area between the blue dotted lines in our charts below.

A widely used trading strategy for longer time frames (weekly, monthly) is the Kumo Breakout

, which will be the focus of this article. As such, only 2 of the usual 5 lines

Senkou Span A and Senkou Span B, which make up the Kumo. We will take a look at the 1991

prevailing quota premiums relative to the Kumo.

So what is this Kumo Cloud? While most technical analysts rely on support/ resistance

he Kumo serves as key support and resistance areas

generally indicates greater volatility in prices, and is also a stronger support/resistance for prices.

Therefore, a breakout from this cloud usually brings about strong price movements in the direction

Discussion of Singapore’s recent inflation seems to dominate dinner conversations these days. In

particular, the recent spike in COE prices is always in the conservational limelight.

we decided to analyse COE prices from a different

Ichimoku is an award winning Japanese trend following indicator that has been successfully used in

nearly every tradeable market. It is also one of the primary elements of proprietary trading systems

is distinctively identified by the “Kumo Cloud”, which is the

monthly) is the Kumo Breakout

As such, only 2 of the usual 5 lines are plotted: the

We will take a look at the 1991-2010

So what is this Kumo Cloud? While most technical analysts rely on support/ resistance lines provided

areas. A thicker cloud

generally indicates greater volatility in prices, and is also a stronger support/resistance for prices.

Therefore, a breakout from this cloud usually brings about strong price movements in the direction

Let’s take a look at Category A. The recent rally in

from 1991-1996. The first break

years. Notice how prices typically retrace back to the Kumo in a mean reverting manner

point during the 9 years did price break above the Kumo.

COE price finally broke above the Kumo

compared to the one in 1991-1996, and

through. While testing the all time highs, w

near term where price would gravitate towards the Kumo.

suggests that prices are skewed to the upside unless prices break below the Kumo.

The outlook for Category B is similar.

the rally from 1991-1994. The first

prices over 10 years. Prices finally

not expect the same rate of increment to follow through

occur in the near term. For the

upside unless prices break below the Kumo.

Kumo is thin, suggesting weak price support

Article written by APF Trading: APF Trading is a trading advisory firm offering clients Managed Forex

Accounts and advice on multi-asset trading strategies, signals, trading systems, execution services

and trading platforms. The firm also conducts research

Ichimoku Kinko Hyo and DeMark Indicators.

The recent rally in COE prices is the most we have seen since the rally

1996. The first breakout below the Kumo in 2000 resulted in a 85% drop in prices

years. Notice how prices typically retrace back to the Kumo in a mean reverting manner

point during the 9 years did price break above the Kumo.

broke above the Kumo in mid 2010 and rallied 100%. This surge is at a faster rate

1996, and we do not expect the same rate of increment to follow

While testing the all time highs, we expect a mean reverting price action to occur in the

near term where price would gravitate towards the Kumo. In the longer term, our

prices are skewed to the upside unless prices break below the Kumo.

is similar. The recent rally in prices is the most that we have seen since

1994. The first breakout below the Kumo in 1999 resulted in a 95% drop in

s finally broke above the Kumo in mid 2010 and rallied 150%.

not expect the same rate of increment to follow through and expect a mean reverting price action

For the Longer term, we maintain the view that prices are skewed to the

upside unless prices break below the Kumo. This bearish breakout can happen as we see the future

Kumo is thin, suggesting weak price support in 2011-2013.

APF Trading is a trading advisory firm offering clients Managed Forex

asset trading strategies, signals, trading systems, execution services

and trading platforms. The firm also conducts research and technical analysis with a focus on

Ichimoku Kinko Hyo and DeMark Indicators.

prices is the most we have seen since the rally

in a 85% drop in prices over 9

years. Notice how prices typically retrace back to the Kumo in a mean reverting manner, but at no

This surge is at a faster rate

e do not expect the same rate of increment to follow

e expect a mean reverting price action to occur in the

our Ichimoku analysis

prices are skewed to the upside unless prices break below the Kumo.

he recent rally in prices is the most that we have seen since

below the Kumo in 1999 resulted in a 95% drop in

id 2010 and rallied 150%. Again, we do

expect a mean reverting price action to

Longer term, we maintain the view that prices are skewed to the

happen as we see the future

APF Trading is a trading advisory firm offering clients Managed Forex

asset trading strategies, signals, trading systems, execution services

and technical analysis with a focus on