Trading with the Smart Money – DRB-Hicom (1619.KL)

The “smart money”, or the group of winning traders that include market makers, large institutions, hedge funds, and algorithms, rely on “dumb money” retail traders for their steady stream of profits. As a Volume Spread Analysis trader, we want to follow the smart money and profit together with them.

We tend to look for hidden potential buying for entry and hidden potential selling to exit by identifying their footprints. In this post, we would like to share how you can identify these footprints using DRB-Hicom chart.

Several signals are well spotted based on Volume Spread Analysis method as below:

1. A weak background with distribution on Feb 2018 and mark-down since March 2018

2. Formed a short re-distribution zone with upbars volume are lower compare to previous mark-up stage. This indicates demands are lesser.

3. Up-Thrust is spotted again on 20 August 2018 at previous distribution zone shows smart money is selling at the higher price.