Straits Times Index Outlook - Wyckoff Price Cycle Analysis

Straits Times Index - FTSE STI

Singapore has one of the most open economy in the world with significant exposure to Supply Chain. Our Trade-to-GDP Ratio is 322% in 2017 as indicated by World Bank. Trade Tension will have direct impact on our economy if trade volume were to drop off.  


Such data and event probability forecast would have already been computed and with actions taken by hedge funds or people familiar with global trades. 


What about private traders like us?? 


Nope, we do not necessary need to lose out, as long as we trade alongside with them. 

Having knowledge of the Wyckoff price cycle and its characteristics help traders recognise the actions of these smart money and trade in-line with their plans. 


In our case of Straits Times Index (STI), by applying Wyckoff analysis, we expect the index to trade towards 1st objective of 3,100 and 2nd objective 2,960. 


With the above, private traders could take short trades alongside smart money or avoid trading on the long side, going against the flow. 
 
Quote from Richard D. Wyckoff: 
"These are the Rules of the Game.."

Cheers.